Jackson National posts $1.4B net income loss, steep annuity sales dip in Q1
May 15, 2023 by John Hilton
Jackson National is continuing to develop its product mix beyond variable annuities – a poorly performing product in the current economy – amid bottom-line financial struggles.
Jackson reported a net income loss of $1.5 billion in the first quarter. Adjusted operating earnings of $271 million were down 28% from the first quarter of 2022, “reflecting the decline in annuity account values and higher interest crediting rates on variable annuity fixed rate options,” the insurer said in a news release.
Click HERE to read the full story via INN
Wink’s Moore on the Market: So, this happened today.
Jackson shares declined 20%.
(ADHD Break: This company was one of the very first entrants into the indexed annuity market. They are known to have the most solid inforce renewal rate history in the indexed annuity industry.)
Jackson has been the #1 seller of variable annuities for just over a decade.
********That is a LONG time to retain one’s market share!********
But while the company is still the top-seller in VA sales, they are now taking home a large share of a $59B market, instead of a large share of a $145B market.
That said, the company obviously saw the writing on the wall, and have been intentional about their entry into other lines of business.
They entered the MYGA market in 2019.
They renewed their vigor in the indexed annuity market that same year.
They entered the structured annuity market in 2021.
Laura Prieskorn says she, “…remain[s] confident in [their] long-term prospects for continued success.”
I personally have the same confidence in Jackson, given my 24 years of studying them.
Kudos to Scott Romine for his observation that Jackson has a “diversified product mix…as well as a strong distribution network.”
I personally believe that they will pull through just fine.- sjm
