Jackson National Life Insurance Company® (Jackson®)
generated a record $1.1 billion in IFRS pretax operating income1
during the first half of 2014, an increase of 20 percent over the first
half of 2013. This overall increase was primarily driven by increased
fee income on higher separate account assets under management. The
separate account growth resulted from both strong net flows and positive
market appreciation during the first half of 2014. Jackson, an indirect
wholly owned subsidiary of the United Kingdom's Prudential plc (NYSE:
PUK), recorded sales and deposits2 for the first half of
$15.9 billion, up 16 percent over same period last year.
"In the first half of 2014, we continued to expand the Jackson franchise
through profitable sales growth while maintaining pricing discipline and
a strong capital position," said Mike Wells, Jackson president and chief
executive officer. "We continue to actively manage the sales volume of
our variable annuity business, and with the continued success of Elite
Access®, improve the diversification of our product mix which
helps to balance our revenue streams. This excellent first-half
performance allowed Jackson to remit a $580 million dividend to our
parent company while maintaining a strong capital position."
Jackson has maintained the same financial strength ratings with all four
primary rating agencies - A.M. Best, Standard & Poor's, Fitch Ratings
and Moody's Investors Service, Inc. - for more than 10 years. As of
August 11, 2014, Jackson had the following ratings:3
1International Financial Reporting Standards (IFRS)
is a principles-based set of international accounting standards
indicating how transactions and other events should be reported in
financial statements. IFRS is issued by the International Accounting
Standards Board in an effort to increase global comparability of
financial statements and results. Jackson's parent, Prudential plc
(Group), uses IFRS to report the Group's financial results.
IFRS pretax operating income is based on longer-term investment
returns. It excludes short-term fluctuations in investment returns,
hedge results, and change in value of derivatives. A reconciliation to
both IFRS net income as well as net income based on US generally
accepted accounting principles (US GAAP) is as follows (amounts in
Jackson's net income was impacted by hedging losses incurred in the
equity market which were not fully offset by the related release of
accounting reserves. IFRS accounting for variable annuity liabilities is
not necessarily consistent with the economic value of these liabilities.
Jackson continues to manage its hedge program on an economic basis and
is willing to accept the accounting volatility that results.
2Sales and deposits from Jackson's subsidiaries,
Jackson National Life Insurance Company of New York®
and Curian Capital®, LLC, have been included in
Jackson's total sales and deposits figure.
3Financial strength ratings do not apply to the
principal amount or investment performance of the separate account or
underlying investments of variable products.
About Jackson National Life Insurance Company
Jackson National Life Insurance Company is an indirect subsidiary of
Prudential plc, a company incorporated in England and Wales. Prudential
plc and its affiliated companies constitute one of the world's leading
financial services groups. It provides insurance and financial services
through its subsidiaries and affiliates throughout the world. It has
been in existence for over 160 years and has $781.1 billion in assets
under management (as of June 30, 2014). Prudential plc is not affiliated
in any manner with Prudential Financial, Inc., a company whose principal
place of business is in the United States of America.
With $206.8 billion in IFRS assets, Jackson is a leading provider of
retirement solutions. The company sells variable, fixed and fixed index
annuities, and institutional products. Through its affiliates and
subsidiaries, Jackson also provides asset management and retail
brokerage services. Jackson markets its products in 49 states and the
District of Columbia through independent and regional broker-dealers,
wirehouses, financial institutions and independent insurance agents.
Jackson's subsidiary, Jackson National Life Insurance Company of New
York, similarly markets products in the state of New York. For more
information, visit www.jackson.com.
This press release may contain certain statements that constitute
"forward-looking statements." Forward-looking statements include
statements concerning plans, objectives, goals, strategies, future
events or performance, and underlying assumptions and other statements
which are other than statements of historical facts. However, as with
any projection or forecast, forward-looking statements are inherently
susceptible to a number of risks and uncertainties and actual results
and events could differ materially from those currently being
anticipated as reflected in such forward-looking statements. There can
be no assurance that management's expectations, beliefs or projections
will result or be achieved or accomplished. Any forward-looking
statements reflect Jackson's views and assumptions as of the date of
this press release and Jackson disclaims any obligation to update
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