NYSE$JXN

Jackson Financial Inc · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Jackson's Q4 2022 financial results were announced, revealing a net loss but strong growth in RILA sales and progress in capital return initiatives.

Jackson Financial Inc. reported a net loss of $(710) million for Q4 2022, but adjusted operating earnings were $491 million. The company saw significant growth in RILA sales, up from $108 million to $560 million year-over-year. Jackson returned $86 million to shareholders through share repurchases and dividends during the quarter. The company is increasing its dividend and share repurchase authorization for 2023.

  • Net loss attributable to Jackson Financial Inc. was $(710) million, or $(8.48) per diluted share.
  • Adjusted operating earnings were $491 million, or $5.66 per diluted share, a 31% decrease from Q4 2021.
  • Returned $86 million to shareholders through share repurchases and dividends.
  • Registered index-linked annuity (RILA) sales increased to $560 million, up from $108 million in Q4 2021.

Headline financials

Total Revenue

-$381M

Previous: $1.62B-123.5%
EPS (adj)

$5.66

Previous: $7.48-24.3%
Net Income

-$718M

Previous: $585M-222.7%
Operating Income

-$953M

No prior period
Gross Profit

-$2.97B

Previous: $1.17B-354.4%
Cash & Equivalents

$4.3B

Previous: $2.62B+63.9%
Total Assets

$315B

Previous: $377B-16.5%
Stock-Based Comp

$35M

Previous: $69M-49.3%

Revenue & EPS history

Jackson · Revenue · Quarterly

-$381M

Q4 2022-123.5%vs Q4 2021
Beat estimate in 6 of 14 quarters(43%)
ActualEstimate

Revenue by segment

Jackson · $655M total across 2 segments · Q4 2022

  • Retail Annuities
    $638M
  • Institutional Products
    $17M

Forward guidance

Jackson is increasing its first quarter 2023 dividend by nearly 13% to $0.62 per share, announcing a $450 million increase to the existing share repurchase authorization, and establishing a 2023 capital return target of $450-$550 million.

Tailwinds

  • Increasing first quarter 2023 dividend by nearly 13% to $0.62 per share
  • Announcing a $450 million increase to the existing share repurchase authorization
  • Establishing a 2023 capital return target of $450-$550 million
  • Strong statutory capital position
  • Robust levels of excess cash at the holding company

Headwinds

  • Unspecified known and unknown risks and uncertainties
  • Factors reflected in the Company’s reports filed with the U.S. Securities and Exchange Commissions
  • Potential material weakness related to the process of setting the discount rate
  • Impact of strong equity markets on hedging losses
  • Additional deferred tax asset (DTA) admissibility limit impacts

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 Q4 2022

Historical avgQ4 2022

+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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