NYSE$JXN

Jackson Financial Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Jackson's financial performance highlighted strong fundamentals with record RILA sales and proactive capital management.

Jackson Financial Inc. reported a net loss attributable to common shareholders of $(1.6) billion, or $(19.64) per diluted share, and adjusted operating earnings of $204 million, or $2.53 per diluted share. The company returned $117 million to common shareholders through share repurchases and dividends and saw an increase in RILA sales and total annuity account value.

  • Net loss attributable to Jackson Financial Inc. common shareholders was $(1.6) billion, or $(19.64) per diluted share.
  • Adjusted operating earnings were $204 million, or $2.53 per diluted share, impacted by actuarial assumptions and private equity returns.
  • Returned $117 million to common shareholders through share repurchases and dividends.
  • RILA sales increased to $1.0 billion, up from $560 million in the fourth quarter of 2022.

Headline financials

Total Revenue

$892M

Previous: -$381M+334.1%
EPS (adj)

$2.53

Previous: $5.66-55.3%
Retail Annuity Sales

$3.3B

No prior period
Variable Annuity Sales

$2.2B

No prior period
RILA Sales

$1B

No prior period
Fixed & Fixed Index Annuity Sales

$79M

No prior period
Statutory TAC

$4.8B

No prior period
AUM

$235B

No prior period
Net Income

-$1.56B

Previous: -$718M-117.3%
Operating Income

-$1.96B

Previous: -$953M-105.1%
Gross Profit

$205M

Previous: -$2.97B+106.9%
Stock-Based Comp

$33M

Previous: $35M-5.7%

Revenue & EPS history

Jackson · Revenue · Quarterly

$892M

Q4 2023-334.1%vs Q4 2022
Beat estimate in 6 of 14 quarters(43%)
ActualEstimate

Revenue by segment

Jackson · $355M total across 4 segments · Q3 2023

  • Retail Annuities
    $354M-2.7%
  • Institutional Products
    $21M+5.0%
  • Closed Life and Annuity Blocks
    $6M-81.8%
  • Corporate and Other
    -$26M-100.0%

Forward guidance

Jackson established Brooke Re and anticipates a capital return to common shareholders target of $550-650 million for 2024.

Tailwinds

  • Establishment and funding of Brooke Life Reinsurance Company (Brooke Re).
  • Increased first quarter 2024 common dividend by nearly 13% to $0.70 per share.
  • Established a 2024 capital return to common shareholders target of $550-650 million.
  • Financial performance highlighting the strong fundamentals of the business.
  • Estimated RBC ratio well above the top end of our range, along with strong levels of excess cash at the holding company.

Headwinds

  • The current quarter’s adjusted operating earnings per diluted share included the $(0.79) unfavorable impact of the annual actuarial assumptions update.
  • The current quarter’s adjusted operating earnings per diluted share included the $(0.37) from returns on private equity and other limited partnership assets below our 10% annualized return assumption.
  • Net outflows were $(452) million in the current quarter for Institutional Products.
  • Lower VA sales in the current quarter were more than offset by $1.0 billion in RILA product sales.
  • Full year 2023 annuity sales of $12.8 billion were down 18% from the full year 2022, reflecting lower sales of variable annuities, partially offset by higher sales of RILA, fixed and fixed indexed annuities.

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 2023

Historical avgQ4 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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