Jackson Financial (JXN) Q1 FY26 earnings call: guidance and Q&A

What percentage of Q1 annuity sales are new business versus internal exchanges?

All reported Q1 sales are new business, with no internal exchanges.

“the first quarter sales, which were very healthy at $5.3 billion, are a reflection of new business without any internal exchanges.”

asked by Suneet Kamath · answered by Laura Prieskorn

Does the large merger of equals in the annuity space (Equitable/Corebridge) change industry dynamics or imply further consolidation?

Jackson competes with both organizations and believes its diversified product set and strong distribution will allow it to continue competing effectively. No comment on further consolidation.

“From a competitive perspective, I would say we compete with both organizations that are recently involved in the merger announcement. We have a diversified product set that I think in comparison to the combined organization will allow us to continue to compete well.”

asked by Suneet Kamath · answered by Laura Prieskorn

Does the $500 million capital contribution to Brooke Re (for Hickory Re) change the timing of potential dividends from Brooke Re?

The $500 million was growth capital for Hickory Re. Capital from Hickory Re is expected to be distributable in the near term (next few years). Capital from the stand-alone Brooke Re business would be a longer-term timeframe.

“We would anticipate that Hickory Re will start generating capital that we will be able to distribute kind of in the near term. So think about next few years. And then capital that would be distributed from the business that is sitting at Brooke Re kind of on a stand-alone basis, that would be more of a longer-term time frame.”

asked by Suneet Kamath · answered by Don Cummings

How sensitive is capital generation to alternative investment returns, given the headwinds, and is there an offset from required capital?

There is some sensitivity, but the company remains comfortable with the full-year $1.2 billion capital generation target, assuming a 5% equity market return. The alternative portfolio is predominantly private equity with a middle-market buyout focus, and the 10% long-term assumption has been outperformed historically.

“we feel pretty comfortable with capital generation for the full year and being able to hit our $1.2 billion target. And as a reminder, that was based on kind of a 5% total equity market return.”

asked by Unknown Analyst · answered by Don Cummings

Beyond new money allocation, what is the timing for repositioning existing assets, particularly in the payout annuity book, through the TPG partnership?

It's still early days for the TPG partnership. Repositioning the overall portfolio (beyond new business returns) is certainly on the list of things to work through once the partnership is fully stood up.

“in terms of being able to reposition our overall portfolio, outside of our kind of new business returns, we still do have that potential. We -- and that certainly on our list of things to work through as we get the partnership fully stood up.”

asked by Unknown Analyst · answered by Don Cummings

What specific features or changes are driving the growth in RILA and FIA sales (e.g., bonuses, cap rates, product design)?

RILA product updates in mid-2025 offer flexibility in crediting methods, protection levels, and index choices. The FIA launch included a unique living benefit option electable post-sale. Growth is also supported by PPM's yield-seeking efforts, the captive for fixed/FIA, and the TPG partnership.

“The product update for RILA was in the mid part of 2025. And that product design has flexibility and choice that is a differentiation from other products... And then on the FIA front, that launch included a living benefit option as well that can be elected not just at sale, but also post sale, which is a unique feature for the FIA product.”

asked by Alex Scott · answered by Laura Prieskorn

Does the new PCAPs facility allow Jackson to run leaner on capital, potentially impacting RBC ratio or holding company cash?

The RBC ratio is expected to come down over time due to business diversification. The PCAPs facility provides a strong source of contingent capital for severe stress scenarios, enhancing capital resilience and risk management, but it's not explicitly stated to enable running leaner on current capital levels.

“we do expect to see our RBC ratio come down over time... The second point specifically around the use of PCAPs, we think that the way that facility is structured, it does provide very -- a very good source of contingent capital should we get into sort of a severe stress scenario.”

asked by Alex Scott · answered by Don Cummings