Jackson® Reports 2012 Record IFRS Net Income of $992.0 Million
*Record 2012 IFRS^1 net income of $992.0 million, up 73.0%
*Record total sales and deposits^2 of $25.5 billion, up 11.3%
*Year-end 2012 IFRS assets total $165.4 billion, up from $119.0 billion at
*Year-end 2012 regulatory adjusted capital of $4.7 billion, up from $3.9
billion at year-end 2011
LANSING, Mich. -- March 13, 2013
Jackson National Life Insurance Company^® (Jackson) reported record IFRS net
income of $992.0 million for full-year 2012, up from $572.8 million in
full-year 2011, driven primarily by higher fee income from variable annuities.
Jackson, an indirect wholly owned subsidiary of the United Kingdom’s
Prudential plc (NYSE: PUK), increased total IFRS assets to $165.4 billion^3 at
the end of 2012, up from $119.0 billion at the end of 2011. As of December 31,
2012, the company had $4.7 billion of regulatory adjusted capital, more than
eight times the minimum regulatory requirement.^4
On September 4, 2012, Jackson completed the acquisition of SRLC America
Holding Corp. (SRLC) from Swiss Re Life Capital Ltd (Swiss Re) for an initial
consideration of $587.3 million.^5 SRLC was the U.S. holding company of
Reassure America Life Insurance Company (REALIC), which was merged into
Jackson on December 31, 2012. The acquisition helps diversify Jackson’s
sources of earnings by increasing the amount of income generated from stable
life insurance profits.
“In 2012, Jackson had a successful year and we are pleased with the progress
that has been made on several fronts. During the year, we delivered record
IFRS profits and record sales despite the challenges that the industry faces
from the current low-interest rate environment. We completed the acquisition
of SRLC which has broadened our policyholder base and enhanced the resilience
of our earnings. We launched a new variable annuity product, Elite Access^®,
which provides tax-efficient access to alternative investments. And, most
importantly, we maintained a strong capital position throughout the entire
year. There is good momentum within our businesses and we are well positioned
as we move into 2013,” said Mike Wells, Jackson’s president and chief
During 2012, all four primary rating agencies—A.M. Best, Standard & Poor’s,
Fitch Ratings and Moody’s Investors Service, Inc.—affirmed Jackson’s financial
strength ratings. Jackson has maintained the same financial strength ratings
for more than 10 years. As of March 12, 2013, Jackson had the following
*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 19 rating categories;
*A1 (good) —Moody's Investors Service, Inc. insurance financial strength
rating, the fifth-highest of 21 rating categories.
Jackson generated $25.5 billion in total sales and deposits during 2012,
compared to $22.9 billion in 2011. Variable annuity (VA) sales totaled $19.7
billion, compared to $17.5 billion during 2011. In March 2012, Jackson
launched Elite Access^®, a variable annuity which gives individual investors
the ability to access alternative investments. Elite Access contributed more
than $1.3 billion to Jackson’s VA sales total during 2012.
“We’re very pleased with the traction Elite Access has gained in the market,”
said Clifford Jack, executive vice president and head of retail for Jackson.
“In 2012, Jackson hosted hundreds of events to help educate advisors on how to
effectively utilize alternative asset classes and confidently explain them to
their clients. This year, we have planned a more ambitious educational
campaign to further support advisors and ensure they are comfortable with the
nuances of the investment options available to them through the Elite Access
Sales of fixed and fixed index annuities (FIAs) also increased in 2012, as
competitive conditions became more favorable. Fixed annuity sales increased to
$921.0 million from $756.2 million in 2011, and FIA sales of $1.7 billion
compared to $1.5 billion in 2011.
Jackson participates in the institutional market (guaranteed investment
contracts, medium-term notes and funding agreements) on an opportunistic
basis. Jackson issued $599.8 million of institutional products, up from $381.8
million in 2011, at spread levels higher than its historical targets.
Subsidiary and Affiliate Performance
Curian Capital^® LLC (Curian), Jackson’s retail asset management subsidiary
that provides customized investment management products and services to
financial representatives and institutional clients, continued to generate
positive net flows during 2012. Deposits totaled $2.5 billion and assets under
management in its core business increased to $8.9 billion as of year-end 2012,
up from $7.3 billion at year-end 2011. Curian reported 2012 IFRS net income of
$23.6 million, compared to $10.0 million during the prior year.
Jackson’s affiliate, National Planning Holdings^®, Inc. (NPH^®), a network of
four independent broker-dealers, generated IFRS revenue of $837.2 million,
compared to $787.8 million in 2011, and IFRS net income of $16.5 million,
compared to $13.4 million in 2011. The network reported gross product sales of
$16.6 billion, compared to $16.3 billion in 2011.
During the first nine months of 2012 (the latest industry data available),
*First in total annuity sales, with a market share of 10.4 percent;^7
*Second in VA new sales, with a market share of 14.0 percent;^8
*Second in VA net flows;^9
*Sixth in total VA assets; ^ 8
*Eighth in FIA sales, with a market share of 4.9 percent;^10 and
*Seventh in deferred fixed-rate annuity sales with a market share of 3.6
Jackson’s growth during 2012 facilitated the recruitment of 321 new employees,
taking Jackson’s total headcount to 4,337 people. Employee growth was
delivered in all of Jackson’s regional centers including Lansing, Nashville
^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, have been included in Jackson’s
total sales and deposits figure.
^3Jackson also has $150.9 billion of IFRS policy liabilities primarily set
aside to pay future policyowner benefits (as of 12/31/12).
^4 Based on authorized control level regulatory capital requirements.
^5On September 4, 2012, Jackson acquired 100% of the equity of SRLC from Swiss
Re for a preliminary purchase price of $663.3 million, which was reduced by an
estimated $73.9 million current net operating loss carryback income tax
recoverable, resulting in a cash payment of $589.4 million at the time of
sale.Subsequent adjustments reduced the preliminary purchase price to $587.3
million, which remains subject to final agreement with Swiss Re.
SRLC’s primary subsidiary was REALIC, which was merged into Jackson on
December 31, 2012. REALIC’s primary business activity involved the acquisition
of blocks of life insurance, including corporate owned life insurance,
disability income and/or annuity contracts in force. In addition to REALIC,
SRLC had other insignificant subsidiaries.Subsequent to the purchase, SRLC
was dissolved and its subsidiaries became direct subsidiaries of Jackson.
^6Financial strength ratings do not apply to the principal amount or
investment performance of the separate account or underlying investments of
^7 Source: LIMRA U.S. Individual Annuities Sales Survey, Third Quarter 2012.
Jackson ranked first in total annuity sales out of 57 participating companies
that reported sales during the period. Jackson ranked seventh in fixed-rate
deferred annuity sales out of 57 participating companies that reported sales
during the period. Market share calculated from LIMRA survey data.
^8Source: © 2012 Morningstar, Inc. All Rights Reserved. The information
contained herein: (1) is proprietary to Morningstar and/or its content
providers; (2) may not be copied or distributed; and (3) is not warranted to
be accurate, complete or timely. Neither Morningstar nor its content providers
are responsible for any damages or losses arising from any use of this
information. Past performance is no guarantee of future results. Morningstar
Annuity Research Center (MARC), Third Quarter 2012 YTD Sales Reports©. Jackson
ranked second in VA sales out of 36 VA companies that reported sales during
the period. Jackson ranked sixth in total VA assets out of 48 VA companies
that reported assets during the period.
^9Jackson ranked second in VA net flows out of 21 participating companies from
the MARC Third Quarter 2012 YTD Net Flow Report© and one company from its
quarterly financial supplement.
^10Source: AnnuitySpecs Indexed Sales & Market Report Third Quarter 2012.
Jackson ranked eighth out of 39 companies that reported sales during the
period. Copyright © 2012, AnnuitySpecs.com.
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% additional tax. Variable annuities involve investment risks and may
Although asset allocation across different asset categories generally limits
risk and exposure to any one category, the risk remains that management may
favor an asset category that performs poorly relative to the other asset
categories. Some of those risks include general economic risk, geopolitical
risk, commodity-price volatility, counterparty and settlement risk, currency
risk, derivatives risk, emerging markets risk, foreign securities risk,
high-yield bond exposure, noninvestment-grade bond exposure, index investing
risk, industry concentration risk, leveraging risk, market risk, prepayment
risk, liquidity risk, real estate investment risk, sector risk, short sales
risk, temporary defensive positions and large cash positions.
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 $165.4 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, 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
*Jackson has $165.4 billion in total IFRS assets and $150.9 billion in IFRS
policy liabilities primarily set aside to pay future policyowner benefits (as
Tax deferral offers no additional value if an annuity is used to fund a
qualified plan, such as a 401(k) or IRA, and may be found at a lower cost in
other investment products. It also may not be available if the annuity is
owned by a “non-natural person” such as a corporation or certain types of
Elite Access Fixed and Variable Annuity (VA650, VA 660) is issued by Jackson
National Life Insurance Company (Home Office: Lansing, Michigan) and in New
York (VA650NY, VA 660NY) by Jackson National Life Insurance Company of New
York (Home Office: Purchase, New York). Variable annuities are distributed by
Jackson National Life Distributors LLC, member FINRA, and may not be available
in all states, and state variations apply. This product has limitations and
restrictions, including withdrawal charges and excess interest adjustments
(interest rate adjustments in New York) where applicable.
Jackson issues other variable annuities with similar features, benefits,
limitations and charges. Discuss Jackson’s other variable annuity options with
your representative or contact Jackson for more information.
Annuities 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). Contact your representative or the Company
for more information.
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 $658.3 billion in assets under management (as of
December 31, 2012). 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, Jackson National Life Insurance 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
Jackson National Life Insurance Company
Kim Isaacson, 800-565-9044 x24292
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