Jackson Financial (JXN) Q2 2024 earnings summary

Executive summary

• Achieved adjusted operating earnings of $410 million in Q2 2024, with GAAP net income of $264 million and EPS of $3.43 (GAAP) and $5.32 (adjusted), driven by higher fee and spread income and a lower share count.

• Retail annuity sales grew 36% year-over-year, with record RILA sales of $1.4 billion, and a rebound in variable annuity sales; total annuity assets under management rose 9% to $247 billion.

• $144 million was returned to shareholders in Q2 via share repurchases and dividends, with a $750 million increase in share repurchase authorization and a quarterly dividend of $0.70 per share announced.

• Maintained strong capital and liquidity, with an estimated RBC ratio of 550%-570% and holding company cash and highly liquid assets exceeding $500 million.

• The Brooke Re reinsurance transaction was completed, optimizing hedging and stabilizing capital generation.

Financial highlights

• Adjusted operating earnings reached $410 million, up 45% year-over-year and 23% sequentially.

• Adjusted EPS was $4.87, up from $3.54 in Q2 2023; basic EPS was $3.45.

• Adjusted book value per diluted share rose to $150.35, up from $136.34 at year-end 2023.

• Net investment income for Q2 2024 was $748 million, up from $642 million in Q2 2023.

• Total assets as of June 30, 2024, were $337.8 billion, with total equity of $10.3 billion.

Outlook and guidance

• On track to achieve full-year financial targets for the fourth consecutive year, including $550–$650 million capital return and minimum 425% RBC ratio.

• Confident in $1 billion+ annual capital generation guidance, with strong equity markets providing a tailwind.

• Expect continued RILA growth supported by new product launches and expanded distribution.

• The Brooke Re transaction is expected to reduce capital volatility and improve predictability of results.

• Management anticipates building on current momentum through the remainder of 2024, citing strong capital generation and diversified sales.