NYSE$JXN

Jackson Financial Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Jackson Financial Inc. reported a net loss due to larger hedging losses, but demonstrated progress in strategic goals with increased RILA sales and shareholder returns.

Jackson Financial Inc. reported a net loss of $1,497 million, primarily due to hedging losses. However, the company saw growth in RILA sales and returned $124 million to shareholders. They remain on track to achieve their 2023 capital return target.

  • Net loss attributable to Jackson Financial Inc. was $(1,497) million, or $(18.11) per diluted share.
  • Adjusted operating earnings were $271 million, or $3.15 per diluted share, a 28% decrease from Q1 2022.
  • Returned $124 million to common shareholders through share repurchases and dividends.
  • First quarter RILA sales increased to $533 million, up from $199 million in the first quarter of 2022.

Headline financials

Total Revenue

-$749M

Previous: $4.3B-117.4%
EPS (adj)

$3.15

Previous: $3.94-20.1%
AUM

$219B

Previous: $243B-9.9%
Free Cash Flow

-$1.5B

Previous: $2.03B-173.9%
Net Income

-$1.5B

Previous: $2.03B-173.9%
Operating Income

-$1.64B

Previous: $3.32B-149.4%
Gross Profit

-$1.4B

Previous: $3.59B-139.1%
Cash & Equivalents

$1.78B

Previous: $2.67B-33.5%
Total Assets

$321B

Previous: $353B-8.8%
Stock-Based Comp

$24M

Previous: $71M-66.2%

Revenue & EPS history

Jackson · Revenue · Quarterly

-$749M

Q1 2023-117.4%vs Q1 2022
Beat estimate in 6 of 14 quarters(43%)
ActualEstimate

Revenue by segment

Jackson · $302M total across 4 segments · Q1 2023

  • Retail Annuities
    $356M
  • Institutional Products
    $9M
  • Closed Life and Annuity Blocks
    -$20M
  • Corporate and Other
    -$43M

Forward guidance

Jackson is confident in its ability to achieve its 2023 key financial targets and create value for shareholders over the long-term, maintaining financial flexibility with a strong RBC ratio and holding company liquidity.

Tailwinds

  • On track with strategic and operational goals.
  • Returned $124 million to common shareholders, a strong start toward the 2023 capital return target of $450-550 million.
  • Significant financial flexibility with an estimated operating company RBC ratio within the target range.
  • Over $1.5 billion of liquidity at the holding company.
  • Successful issuance of preferred stock in the first quarter, raising $533 million of net proceeds.

Headwinds

  • Ongoing market volatility.
  • Net income (loss) attributable to Jackson Financial Inc. of $(1,497) million.
  • Adjusted operating earnings down 28% from the first quarter of 2022.
  • Decline in annuity account values.
  • Higher interest crediting rates on variable annuity fixed rate options.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

+2.2%

Avg return

Earnings day

+4.3%

Avg return

5 days after

+8.1%

Avg return

30 days after

63%

15 / 24 earnings

Positive

+20.0%

Q3 2020

Best reaction

-21.4%

Q1 2021

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-4.0%+0.9%-1.0%
Q4 2025-2.7%-6.4%-11.9%
Q3 2025-7.3%-7.4%-2.2%
Q1 2025+1.8%+7.4%+0.5%
Q4 2024-8.8%-9.3%-8.5%
Q3 2024+10.5%+12.8%-2.5%
Q2 2024+10.9%+10.8%+10.0%
Q1 2024+7.9%+3.3%+0.3%
Q4 2023+1.5%+2.6%+24.9%
Q3 2023+9.9%+8.7%+21.8%
Q2 2023+1.8%+8.9%+14.2%
Q1 2023-17.9%-17.4%-15.2%
Q4 2022-5.7%-1.9%-1.7%
Q3 2022+15.6%+18.1%+13.6%
Q2 2022+14.4%+19.2%+12.7%
Q1 2021-21.4%-11.2%-15.7%
Q1 2022-20.6%-18.6%-16.8%
Q4 2019-3.1%+3.4%+10.1%
Q4 2021+10.1%-4.4%+15.1%
Q4 2020+20.0%+24.0%+42.1%
Q3 2020+20.0%+24.0%+42.1%
Q3 2021+9.3%+19.0%+36.0%
Q2 2020+4.4%+9.8%+13.7%
Q2 2021+5.7%+6.8%+13.8%
Q1 2020

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