The following is a summary of the Jackson Financial Inc (JXN) Q3 2024 Earnings Call Transcript:
Financial Performance:
Jackson Financial reported a net income loss for Q3 but remained positive over nine months.
Q3 adjusted operating earnings increased, with rises in fee and investment spread income.
Business Progress:
Launched new products such as Principal Guard and expanded distribution networks.
Achieved strong sales in RILA segment and fixed annuity sales reached $1 billion in Q3.
Opportunity:
RILA products' sales grow, benefiting from expanded distribution and new offerings.
Introduced innovative products like Principal Guard to meet diverse consumer needs.
Risk:
Reported nonoperating losses due to losses on a legacy reinsurance treaty.
Hedge results displayed losses impacted by market conditions.
Financial Performance:
Jackson Financial Inc reported a net income loss for Q3, but net income positive over the nine months.
Adjusted operating earnings for Q3 increased compared to the same period last year, with a rise in fee income and investment spread income.
Total retail annuity sales exceeded $5 billion, a significant increase from the previous year.
Assets under management grew by 9% in the first 9 months to more than $250 billion.
Holding company cash approached $650 million, with a substantial $300 million distribution from Jackson National Life.
Business Progress:
Introduced new products such as the Principal Guard guaranteed minimum accumulation benefit and expanded the distribution network.
Continued growth in the RILA product segment, including the launch of new offerings and expansion into new geographies.
Achieved record sales in the RILA segment, contributing to a diversified and strong sales quarter.
Leveraged broad retail annuity distribution platform to drive growth in fixed annuity sales, reaching $1 billion sales for the third quarter.
Opportunities:
RILA products continue to be a growing segment, benefiting from recent launches and expanded distribution.
New and innovative product offerings like Principal Guard have been introduced to meet diverse consumer needs.
Enhanced distribution network through partnerships, allowing access to additional financial professionals and potentially increasing market share.
Risks:
Nonoperating losses were reported, primarily due to losses on a legacy funds withheld reinsurance treaty.
Hedge results showed a loss due to the impact of market conditions and the non-application of the volatility assumption.
The surging retail annuities segment may face challenges if market conditions turn unfavorable, impacting the newly introduced products' acceptance.
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