|[March 13, 2012]
Jackson® Reports Record IFRS Net Income of $683 Million in 2011
LANSING, Mich. --(Business Wire)--
Jackson National Life Insurance Company® (Jackson) achieved
record IFRS1 net income of $683 million during 2011, up 34
percent over 2010. Jackson has generated more than a half-billion
dollars in IFRS net income in seven out of the past eight years.
Jackson, an indirect wholly owned subsidiary of the United Kingdom's
Prudential plc (NYSE: PUK), generated a record $22.9 billion in total
sales and deposits2, up 16 percent over 2010. Retail net
flows also increased 11 percent over 2010 to a record $13.6 billion. The
record sales and net flows were driven primarily by growth in variable
annuity (VA) sales at Jackson and deposits at Jackson's retail asset
management subsidiary Curian Capital,® LLC (Curian). VA sales
rose 19 percent to $17.5 billion, while Curian deposits increased 28
percent to $2.7 billion.
"Our Long-Term Smart® strategy of balancing sales
opportunities with strict financial discipline enables Jackson to
deliver sustainable, profitable growth," said Mike Wells, Jackson's
president and chief executive officer. "By remaining disciplined,
Jackson did not just withstand the headwinds of market volatility and
low interest rates during 2011, but was able to generate the highest
level of IFRS earnings in company history."
Jackson's total IFRS assets increased to $120.2 billion at the end of
2011, up from $107.0 billion at the end of 2010.3 At December
31, 2011, Jackson had $3.9 billion of regulatory adjusted capital, more
than eight times the regulatory requirement4, after remitting
a dividend of $530 million to its parent company, Prudential plc.
"Jackson generated record earnings during 2011 due to a 34-percent
increase in fee income and net realized gains on debt securities of $170
million, compared to $17 million in 2010," said Chad Myers, Jackson's
executive vice president and chief financial officer. "Additionally,
Jackson increased its operational efficiency during 2011, reducing its
statutory general expense-to-average asset ratio to 42 basis points,
down from 44 basis points in 2010."
Curian generated $10 million in IFRS pretax operating income during
2011, up from $2 million during 2010. As of December 31, 2011, Curian's
assets under management totaled $7.3 billion, up 32 percent from the end
Jackson continues to manage fixed index annuity and fixed annuity sales
volumes. Consumer demand for these products fell during 2011 due to the
low interest rate environment. During 2011, Jackson sold $1.5 billion in
fixed index annuities, compared to $1.7 billion in 2010. Sales of
traditional deferred fixed annuities totaled $756 million during 2011,
compared to $1.3 billion during the prior year. Jackson took advantage
of the availability of wider spreads during 2011 by issuing $382 million
in institutional products, a market in which the company participates on
an opportunistic basis.
During 2011, all four primary rating agencies - A.M. Best, Standard &
Poor's, Fitch Ratings and Moody's Investor Service, Inc. - affirmed
Jackson's financial strength ratings. Jackson has maintained the same
financial strength ratings for more than nine years. As of February 29,
2012, Jackson had the following ratings5:
A+ (superior) A.M. Best financial strength rating, the second-highest
of 16 rating categories
AA (very strong) Standard & Poor's insurer financial strength rating,
the third-highest of 21 rating categories
AA (very strong) Fitch Ratings insurer financial strength rating, the
third-highest of 24 rating categories
A1 (good) Moody's Investors Service, Inc. insurance financial strength
rating, the fifth-highest of 21 rating categories
Jackson ranked third in both total annuity6 and VA sales,7
and second in VA net flows8 during the first nine months of
2011. The company achieved the following rankings and market
Third in total annuity sales with a market share of 8.4 percent;6
Third in variable annuity sales with a market share of 11.8 percent;7
Ninth in fixed index annuity sales with a market share of 4.6 percent;9
14th in traditional deferred fixed annuity sales with a market share
of 1.9 percent.10
Jackson's affiliate, National Planning Holdings®, Inc. (NPH®),
a network of four independent broker-dealers, also had a very strong
year, with IFRS revenue of $788 million, up 14 percent over 2010, and
IFRS pretax operating income of $22 million, up 32 percent over 2010.
The network reported record gross product sales of $16.3 billion in
2011, an increase of 14 percent over the prior year.
"Jackson continues to benefit from a flight to quality in the retirement
services industry due to the company's focus on sustainable growth,"
Wells said. "Our reputation for financial discipline has helped
establish Jackson as a reliable business partner among advisers and
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, uses
IFRS to report the Group's financial results.
2Sales and deposits from Jackson's subsidiaries
Jackson National Life Insurance Company of New York®
and Curian Capital have been included in Jackson's total sales and
3Jackson also has $109 billion of IFRS policy
liabilities primarily set aside to pay future policyowner benefits (as
4Based on authorized control level capital
5Financial strength ratings do not apply to the
principal amount or investment performance of the separate account or
underlying investments of variable products.
6Sources: LIMRA International U.S. Individual
Annuities Sales Survey, Third Quarter 2011 YTD. Jackson ranked third in
total annuity sales out of 58 companies during 3Q11 YTD.
7Source (News - Alert): The Morningstar Annuity Research Center,
Third Quarter 2011 YTD Sales Report. Jackson ranked third in new
variable annuity sales out of 38 companies during 3Q11 YTD.
8Source: The Morningstar Annuity Research Center,
Third Quarter 2011 YTD Net Flow Report and Company Financial
Supplements. Jackson ranked second in VA net flows out of 24 companies
during 3Q11 YTD.
9Source: AnnuitySpecs Indexed Sales & Market
Report, Third Quarter 2011 YTD. Jackson ranked ninth in fixed index
annuity sales out of 36 companies during 3Q11 YTD.
10Source: LIMRA International U.S. Individual
Annuities Sales Survey, Third Quarter 2011 YTD. Jackson ranked 14th in
traditional deferred fixed annuity sales out of 60 companies during 3Q11
Before investing in variable products, investors should carefully
consider the investment objectives, risks, charges and expenses of the
variable product and its underlying investment options. The
current contract prospectus and underlying fund prospectuses, which are
contained in the same document, provide this and other important
information. Please contact your representative or the Company to
obtain the prospectuses. Please read the prospectuses carefully
before investing or sending money.
About Jackson National Life Insurance Company
With $120 billion in assets (IFRS)*, Jackson National Life Insurance
Company (Jackson) is a leading provider of retirement solutions. The
company sells variable, fixed and fixed index annuities, life insurance
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.
*Jackson has $120 billion in total IFRS assets and $109 billion in
IFRS policy liabilities primarily set aside to pay future policyowner
benefits (as of 12/31/11).
Annuities and life insurance products are issued by Jackson National
Life Insurance Company (Home Office: Lansing, Michigan) and Jackson
National Life Insurance Company of New York (Home Office: Purchase, New
York). Variable products are distributed by Jackson National Life
Distributors LLC. May not be available in all states and state
variations may apply. These contracts have limitations and restrictions,
including possible withdrawal charges, recapture charges and excess
interest adjustments. Contact your representative or the Company for
Please remember that a Jackson annuity is intended to be a long-term,
tax-deferred vehicle for retirement. An annuity's earnings are taxable
as ordinary income when withdrawn and, if taken before age 59 1/2, may
be subject to a 10% federal tax penalty. Variable annuities involve
investment risks and may lose value.
Jackson National Life Insurance Company is an indirect subsidiary of
Prudential plc, a company incorporated and with its principal place of
business in the United Kingdom. Prudential plc and its affiliated
companies constitute one of the world's leading financial service
groups. It provides insurance and financial services directly and
through its subsidiaries and affiliates throughout the world. It has
been in existence for over 160 years and had $545 billion in assets
under management as of December 31, 2011. 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.
The following cautionary statement is included to make applicable and
take advantage of the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995 for any forward-looking statements made
by, or on behalf of, the Company. 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.
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