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1. Company Snapshot

1.a. Company Description

Jackson Financial Inc., through its subsidiaries, primarily provides a suite of annuities to retail investors in the United States.The company operates through three segments: Retail Annuities, Institutional Products, and Closed Life and Annuity Blocks.The Retail Annuities segment offers various retirement income and savings products, including variable, fixed index, fixed, and immediate payout annuities, as well as registered index-linked annuities and lifetime income solutions.


The Institutional Products segment provides traditional guaranteed investment contracts; funding agreements comprising agreements issued in conjunction with its participation in the U.S. federal home loan bank program; and medium-term funding agreement-backed notes.The Closed Life and Annuity Blocks segment offers various protection products, such as whole life, universal life, variable universal life, and term life insurance products, as well as fixed, fixed index, and payout annuities.This segment also provides a block of group payout annuities.


The company also offers investment management services.It sells its products through a distribution network that includes independent broker-dealers, banks and other financial institutions, wirehouses and regional broker-dealers, and independent registered investment advisors, third-party platforms, and insurance agents.Jackson Financial Inc.


was formerly known as Brooke (Holdco1) Inc.and changed its name to Jackson Financial Inc.in July 2020.


The company was incorporated in 2006 and is headquartered in Lansing, Michigan.

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1.b. Last Insights on JXN

Jackson Financial Inc.'s recent performance was negatively impacted by Ethic Inc. reducing its stake in the company by 11.7% in a recent quarter, according to a Form 13F filing. Despite beating Q3 earnings and revenue estimates with $6.16 per share, exceeding the Zacks Consensus Estimate of $5.1 per share, some investors appear to be cautious. However, the company's diversified annuity sales, conservative investment portfolio, and strong institutional growth support resilient earnings and risk management, with an exceptional capital position enabling aggressive share buybacks and a 3.2% dividend yield (Source: company reports, Zacks).

1.c. Company Highlights

2. Jackson Financial's Q3 Earnings: A Strong Performance

Jackson Financial reported adjusted operating earnings of $433 million, a 20% increase from the year-ago quarter, driven by its Retail Annuities business. The company's earnings per share (EPS) came in at $6.16, beating analyst estimates of $5.1. Revenue growth was robust, with retail annuity sales reaching $5 billion, led by the RILA product suite, which delivered record sales of $2 billion. The company's RILA account balance approached $18 billion, a 74% increase from the prior year.

Publication Date: Nov -09

📋 Highlights
  • Adjusted Operating Earnings Surge: Rose to $433 million, a 20% YoY increase, driven by Retail Annuities' $5 billion in sales.
  • RILA Dominates Retail Annuities: Achieved record $2 billion in sales (38% of total), with account balances up 74% YoY to $18 billion.
  • Capital Returns Exceed $2.5 Billion: Share repurchases and dividends totaled nearly $2.5 billion, surpassing Jackson's initial market cap as an independent public company.
  • Strong RBC Ratio of 579%: Maintains a 579% Risk-Based Capital ratio, 37% above the 425% target, ensuring regulatory compliance and liquidity.
  • 14% Free Cash Flow Yield: Generated $1.6 billion in trailing 12-month free capital, with a 14% yield reflecting robust capital efficiency.

Business Segment Performance

The Retail Annuities segment benefited from a favorable environment for spread products and higher levels of fee income, with pretax adjusted operating earnings driven by the level of assets under management. The Closed Block segment reported pretax adjusted operating earnings that were up from the third quarter of last year, primarily due to higher spread income. The company's variable annuity performance has offset net outflows, and its hedging program is designed to offset internal trades and then purchase external hedges.

Capital Generation and Return

Jackson National Life (JNL) has demonstrated strong free capital generation, with after-tax statutory capital generation of $579 million in the third quarter, and free capital generation totaling $459 million. The company has returned nearly $2.5 billion to common shareholders, exceeding its initial market capitalization as an independent public company. JNL's capital position and Risk-Based Capital (RBC) ratio remain well above the minimum target of 425%, with an RBC ratio of 579% at the end of the quarter.

Valuation and Outlook

With a Price-to-Book Ratio of 0.64, Jackson Financial's valuation appears reasonable. Analysts estimate next year's revenue growth at 5.5%. The company's strong capital generation and return, combined with its diversified business mix, position it well for future growth. As Laura Prieskorn noted, "We are pleased with the progress that we've made in building a well-diversified new business mix since becoming an independent public company." The company's free cash flow yield of 23.57% also suggests that Jackson Financial has a growing capital and liquidity position.

3. NewsRoom

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Best Value Stock to Buy for Nov. 19th

Nov -19

Source: zacks.com

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Best Income Stocks to Buy for Nov. 19th

Nov -19

Source: zacks.com

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Jackson Financial Inc. (JXN) Q3 2025 Earnings Call Transcript

Nov -05

Source: seekingalpha.com

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Jackson Financial: Q3 Disproves The Skeptics Again

Nov -05

Source: seekingalpha.com

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Jackson Financial (JXN) Beats Q3 Earnings and Revenue Estimates

Nov -05

Source: zacks.com

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Jackson Announces Outstanding Third Quarter 2025 Results

Nov -04

Source: businesswire.com

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Jackson Announces Fourth Quarter 2025 Common and Preferred Stock Dividends

Nov -04

Source: businesswire.com

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Jackson Financial Inc. $JXN Stake Lowered by Ethic Inc.

Oct -30

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.04%)

6. Segments

Retail Annuities

Expected Growth: 4.65%

Jackson Financial Inc.'s Retail Annuities growth of 4.65% is driven by increasing demand for retirement savings, rising popularity of fee-based advisory channels, and expansion into underserved markets. Additionally, the company's digital platform enhancements, competitive product offerings, and strategic partnerships have contributed to this growth.

Reconciling Items

Expected Growth: 8.37%

Jackson Financial Inc.'s 8.37% growth is driven by increasing demand for wealth management services, strategic acquisitions, and expansion into new markets. Additionally, the company's focus on digital transformation, cost savings initiatives, and a favorable interest rate environment have contributed to its growth momentum.

Closed Life and Annuity Blocks

Expected Growth: 4.65%

The 4.65% growth in Closed Life and Annuity Blocks from Jackson Financial Inc. is driven by increasing demand for retirement products, favorable interest rates, and effective cost management. Additionally, the company's strong distribution network, improved risk management, and strategic reinsurance agreements have contributed to the growth.

Institutional Products

Expected Growth: 7.9%

Jackson Financial Inc.'s Institutional Products segment growth of 7.9% is driven by increasing demand for retirement solutions, expansion of distribution channels, and strategic partnerships. Additionally, the company's focus on fee-based products, such as annuities and investment products, has contributed to the growth. Furthermore, the rising popularity of environmental, social, and governance (ESG) investing has also boosted demand for Jackson's institutional products.

Corporate and Other Segment

Expected Growth: 4.63%

The 4.63% growth in Jackson Financial Inc.'s Corporate and Other Segment is driven by increased demand for retirement solutions, expansion of distribution channels, and strategic investments in digital capabilities. Additionally, the segment has benefited from favorable market conditions, improved operational efficiency, and effective cost management.

7. Detailed Products

Retirement Plans

Jackson Financial Inc. offers a range of retirement plans, including 401(k), IRA, and pension plans, designed to help individuals and businesses save for their future.

Annuities

Jackson Financial Inc. provides a variety of annuity products, including fixed, variable, and indexed annuities, designed to provide a steady income stream in retirement.

Life Insurance

Jackson Financial Inc. offers a range of life insurance products, including term life, whole life, and universal life insurance, designed to provide financial protection for loved ones.

Investment Products

Jackson Financial Inc. provides a range of investment products, including mutual funds, exchange-traded funds (ETFs), and separately managed accounts, designed to help individuals and businesses grow their wealth.

Wealth Management

Jackson Financial Inc. offers comprehensive wealth management services, including financial planning, investment management, and estate planning, designed to help high-net-worth individuals and families manage their wealth.

8. Jackson Financial Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Jackson Financial Inc. is moderate due to the presence of alternative financial institutions and online platforms that offer similar services.

Bargaining Power Of Customers

The bargaining power of customers is high due to the availability of multiple financial institutions and online platforms that offer similar services, giving customers the power to choose.

Bargaining Power Of Suppliers

The bargaining power of suppliers is low due to the company's strong relationships with its suppliers and the availability of multiple suppliers in the market.

Threat Of New Entrants

The threat of new entrants is moderate due to the presence of regulatory barriers and the need for significant capital investment to enter the market.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of multiple financial institutions and online platforms that offer similar services, leading to intense competition in the market.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 16.75%
Debt Cost 8.98%
Equity Weight 83.25%
Equity Cost 11.66%
WACC 11.21%
Leverage 20.12%

11. Quality Control: Jackson Financial Inc. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Unum

A-Score: 6.8/10

Value: 7.4

Growth: 5.7

Quality: 6.4

Yield: 5.0

Momentum: 8.5

Volatility: 8.0

1-Year Total Return ->

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Stock-Card
CNO Financial Group

A-Score: 6.3/10

Value: 6.7

Growth: 6.4

Quality: 5.1

Yield: 4.0

Momentum: 7.0

Volatility: 8.3

1-Year Total Return ->

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Stock-Card
Primerica

A-Score: 6.2/10

Value: 5.6

Growth: 7.3

Quality: 7.4

Yield: 3.0

Momentum: 5.0

Volatility: 9.0

1-Year Total Return ->

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Stock-Card
F&G Annuities & Life

A-Score: 5.9/10

Value: 8.4

Growth: 8.4

Quality: 6.2

Yield: 5.0

Momentum: 1.5

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
Jackson Financial

A-Score: 5.9/10

Value: 5.3

Growth: 4.3

Quality: 7.1

Yield: 8.0

Momentum: 5.0

Volatility: 5.7

1-Year Total Return ->

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Stock-Card
American Equity

A-Score: 5.4/10

Value: 9.6

Growth: 7.3

Quality: 6.1

Yield: 1.0

Momentum: 5.0

Volatility: 3.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

98.15$

Current Price

98.15$

Potential

-0.00%

Expected Cash-Flows