Jackson Reports First Half 2013 IFRS Pretax Operating Income of $924.6 Million; Total Sales and Deposits of $13.7 Billion

  Jackson Reports First Half 2013 IFRS Pretax Operating Income of $924.6
  Million; Total Sales and Deposits of $13.7 Billion

Business Wire

LANSING, Mich. -- August 12, 2013

Jackson National Life Insurance Company^® (Jackson^®) generated $924.6 million
in IFRS pretax operating income^1 during the first half of 2013, an increase
of 29.8 percent over the first half of 2012, due primarily to higher fee
income and higher life insurance profits due to the earnings contribution of
REALIC, which was acquired by Jackson in the third quarter of 2012. First-half
sales and deposits^2 totaled $13.7 billion, up 9.4 percent year over year.

Jackson, an indirect wholly owned subsidiary of the United Kingdom’s
Prudential plc (NYSE: PUK), recorded IFRS net income of $145.7 million during
the first half of 2013, compared to $389.7 million during the first half of
2012. This decline was due primarily to less favorable net hedge results
during the period due to the combination of a rapid rise in equity markets
with accounting requirements that do not fully reflect economic movements.

“In the first half of 2013, we continued to expand the Jackson franchise
through profitable sales growth while maintaining pricing discipline and a
strong capital position. Our sales results benefited significantly from Elite
Access^®, and we remain pleased with the profits gained through the REALIC
acquisition. This excellent first-half performance allowed Jackson to remit a
$470.0 million dividend to our parent company,” said Mike Wells, Jackson
president and chief executive officer.

Financial Strength

During the first half of 2013, 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 August 9, 2013,
Jackson had the following ratings:^3

  *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 Sales

Jackson generated $13.7 billion in total sales and deposits during the first
half of 2013, compared to $12.6 billion in the same period of 2012. The
company maintained healthy variable annuity (VA) volumes of $10.3 billion,
with a rapidly growing contribution from Elite Access, a VA launched in March
2012 that gives individual investors the ability to access alternative
investments. Elite Access sales were nearly $2.0 billion, up from $218.2
million in the first half of 2012 and $1.1 billion in the second half of 2012.

“Jackson has achieved tremendous success with Elite Access because the product
fulfills a demand in the market for a retail investment vehicle that
effectively combines traditional and alternative asset classes,” said Clifford
Jack, executive vice president and head of retail for Jackson. “Elite Access
is a great complement to Perspective II^®, Jackson’s more traditional variable
annuity, as both products allow advisors to customize an investment strategy
to help meet the unique financial needs of their clients.”

Jackson’s fixed index annuity sales totaled $957.1 million during the first
half of 2013, up from $793.5 million during the first half of 2012, due to an
increase in consumer demand for products that offer principal protection along
with the potential to benefit from equity market gains. Fixed annuity sales
totaled $457.2 million, compared to $492.6 million in the same period of 2012.

Jackson participates in the institutional market (guaranteed investment
contracts, medium-term notes and funding agreements) on an opportunistic
basis. Jackson issued $597.1 million of institutional products, up from $293.3
million in first half of 2012.

Subsidiary and Affiliate Performance

Curian Capital^® LLC (Curian), Jackson’s asset management subsidiary that
provides customized investment management products and services to financial
representatives and institutional clients, continued to generate positive net
flows during 2013. Deposits were nearly $1.5 billion during the first half of
2013, up from $1.3 billion during the same period of 2012. Assets under
management in Curian’s core business increased to $9.8 billion as of June 30,
2013, up from $8.9 billion at year-end 2012. Curian contributed $21.9 million
to Jackson’s total IFRS pretax income during the first half of 2013, up from
$11.2 million during the first half of 2012.

Jackson’s affiliate, National Planning Holdings^®, Inc. (NPH^®), a network of
four independent broker-dealers, reported gross product sales of $10.4 billion
during the first half of 2013, compared to $8.2 billion in the same period of
2012, yielding IFRS^1 revenue of $470.1 million and $411.5 million in the
first six months of 2013 and 2012, respectively. NPH also generated $11.0
million in IFRS net income, compared to $8.1 million during the first half of
2012.

Employment

Jackson’s growth during the first half of 2013 facilitated the recruitment of
more than 200 new employees, increasing total headcount to more than 4,500
people. Employee growth was delivered in all of Jackson’s regional centers
including Lansing, Nashville and Denver. In April, Jackson announced the
expansion of its Lansing campus to accommodate its growing workforce. In
addition, Jackson established satellite offices at Michigan State University
and Michigan Technological University, providing employment opportunities for
students and community members, and giving Jackson access to a broader pool of
talent for workforce recruitment.

^1International Financial Reporting Standards (IFRS) is a principles-based set
of international accounting standards for reporting financial information.
IFRS is issued by the International Accounting Standards Board in an effort to
increase global comparability of financial statements and results. IFRS is
used by Jackson's parent, Prudential plc, 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 net income based on US
generally accepted accounting principles (US GAAP) is as follows (amounts in
millions):

$  924.6      IFRS basis pretax income from operations
    (842.8 )     Net hedge results and change in value of derivatives, net of
                 DAC amortization
    54.8         Net realized investment gains, net of DAC amortization and
                 non-controlling interest
    57.6         Normalization of longer-term investment returns, net of DAC
                 amortization
  (48.5  )     Income tax expense
    145.7        IFRS net income
  29.6        IFRS to US GAAP adjustments, net of tax
$   175.3        US GAAP basis net income

^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.

^3Financial strength ratings do not apply to the principal amount or
investment performance of the separate account or underlying investments of
variable products.

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
lose value.

Although asset allocation among 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

Jackson is a leading provider of retirement solutions for industry
professionals and their clients. The company offers a diverse range of
products including variable, fixed and fixed index annuities designed for
tax-efficient accumulation and distribution of retirement income for retail
customers, and fixed income products for institutional investors. Jackson
subsidiaries and affiliates provide specialized asset management and retail
brokerage services. With $173.6 billion in assets*, Jackson prides itself on
product innovation, sound corporate risk management practices and strategic
technology initiatives. Focused on thought leadership and education, the
company develops proprietary research, industry insights and financial
representative training on retirement planning and alternative investment
strategies. Jackson is also dedicated to corporate social responsibility and
supports charities focused on helping children and seniors in the communities
where its employees live and work. For more information, visit
www.jackson.com.

Jackson is the marketing name for Jackson National Life Insurance Company,
Jackson National Life Insurance Company of New York^® and Jackson National
Life Distributors LLC.

*Jackson has $173.6 billion in total IFRS assets and $161.2 billion in IFRS
policy liabilities primarily set aside to pay future policyowner benefits as
of June 30, 2013.

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). Perspective II Fixed and Variable
Annuity (VA620) is issued by Jackson National Life Insurance Company (Home
Office: Lansing, Michigan) and in New York (VA620NY 09/12) 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, may not be available in all states and state variations may apply.
These products have 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. Jackson is the
marketing name for Jackson National Life Insurance Company and Jackson
National Life Insurance Company of New York.

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 and with its principal place of
business in England. Prudential plc and its affiliated companies constitute a
large global financial services group. It has been in existence for 165 years
and has $648.2 billion in assets under management as of June 30, 2013.
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
accomplished.

Contact:

CORPORATE COMMUNICATIONS
Jackson National Life Insurance Company
Kim Isaacson, 800-565-9044 x24292
Director, Financial Communications & Social Media
kim.isaacson@jackson.com
 
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