Jackson Financial (JXN) Q3 2024 earnings summary

Executive summary

• Reported a GAAP net loss of $480 million ($6.37 per share) for Q3 2024, primarily due to $515 million in losses from a legacy reinsurance treaty and unfavorable hedging results, compared to net income of $2.8 billion in Q3 2023.

• Adjusted operating earnings were $350 million ($4.60 per share), up from $315 million ($3.80 per share) in Q3 2023, driven by higher variable annuity AUM, fee, and spread income.

• Retail annuity sales reached $5.3 billion, up 59% year-over-year, with record RILA sales of $1.6 billion, marking the most diversified quarter since independence.

• Returned $483 million to shareholders year-to-date through dividends and share repurchases; cumulative capital return since 2021 reached $1.7 billion.

• Entered a significant reinsurance transaction with Brooke Re, optimizing hedging, capital management, and reducing earnings volatility.

Financial highlights

• Adjusted operating earnings of $350 million in Q3 2024, up from $315 million in Q3 2023, with adjusted operating EPS at $4.60, compared to $3.80 last year.

• GAAP net loss attributable to common shareholders was $480 million, compared to $2.76 billion net income in Q3 2023.

• Total revenues for Q3 2024 were $2.1 billion, down from $2.6 billion in Q3 2023, reflecting lower net gains on derivatives and investments.

• Adjusted book value attributable to common shareholders was $11.2 billion, or $149.29 per share, up from $10.8 billion, or $136.34 per share, at year-end 2023.

• Assets under management grew to $256 billion, up 18% year-over-year.

Outlook and guidance

• On track to meet annual financial targets for the fourth consecutive year, including $550–$650 million capital return to shareholders.

• Capital return for 2024 expected at the upper half of the $550–$650 million target, with $483 million returned year-to-date.

• Management anticipates continued growth in RILA and diversified annuity sales, with some moderation in fixed annuity volumes.

• The Brooke Re reinsurance transaction is expected to stabilize capital generation and reduce earnings volatility.

• Declared a $0.70 per share cash dividend for Q4 2024.