Jackson Reports 2013 Results; Continuing to Build on Strength and Discipline

  Jackson Reports 2013 Results; Continuing to Build on Strength and Discipline

  *Record IFRS^1 pre-tax operating income of $2.0 billion, an increase of
    28.0% over year-end 2012
  *Record total sales and deposits^2 of $27.3 billion, an increase of 7.3%
    over year-end 2012
  *Year-end 2013 IFRS assets total $191.5 billion, up from $165.4 billion at
    year-end 2012
  *Year-end 2013 regulatory adjusted capital of $4.8 billion, up from $4.7
    billion at year-end 2012

Business Wire

LANSING, Mich. -- March 12, 2014

Jackson National Life Insurance Company^® (Jackson^®) generated a record level
of $2.0 billion in IFRS pretax operating income during 2013, an increase of
28.0 percent over 2012. IFRS net income for December 31, 2013 was $730
million.

Jackson also reported record total sales and deposits of $27.3 billion, 7.3
percent higher than the prior year. The key driver of this increase in 2013
was Jackson’s newest variable annuity product, Elite Access^®, which provides
tax efficient access to alternative investments. Elite Access contributed $4.0
billion in total sales in 2013, up from $1.3 billion in 2012.

“In 2013, Jackson remained focused on our key strengths and we are pleased
with the strong performance which is a result of our continued discipline,”
said Mike Wells, Jackson’s president and chief executive officer. “During the
year, with the success of our most recent product, Elite Access, we were able
to achieve record sales while we continued to diversify our risk profile. In
addition, we maintained our strong capital position while growing our business
and paying a significant dividend to our parent.”

Jackson, an indirect wholly owned subsidiary of the United Kingdom’s
Prudential plc (NYSE: PUK), increased total IFRS assets to $191.5 billion^3 at
the end of 2013, up from $165.4 billion at the end of 2012. As of December 31,
2013, Jackson had $4.8 billion of regulatory adjusted capital, approximately
nine times the minimum regulatory requirement.^4

Throughout the economic cycles, Jackson has maintained its financial strength.
During 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 March 12, 2014, Jackson had the following
ratings:^5

  *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.

^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. For
more information, visit www.prudential.co.uk.

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 to net income based on US generally accepted accounting principles (US
GAAP) is as follows (amounts in millions):

$ 1,998.6      IFRS basis pretax income from operations
  (1,229.4 )     Net hedge results and change in value of derivatives, net of
                 Deferred Acquisition Cost (DAC) amortization
  95.1           Net realized investment gains, net of DAC amortization and
                 non-controlling interest
  41.7           Normalization of longer-term investment returns, net of DAC
                 amortization
 (175.8   )     Income tax expense
  730.2          IFRS net income
 25.0          IFRS to US GAAP adjustments, net of tax
$ 755.2         US GAAP basis net income

Jackson’s net income was impacted by hedging losses incurred in the strong
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.

^3Jackson also has $178.5 billion of IFRS policy liabilities primarily set
aside to pay future policyowner benefits (as of December 31, 2013).

^4 Based on authorized control level regulatory capital requirements.

^5Financial 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 $733.6 billion in assets under management (as of
December 31, 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.

With $191.5 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.

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
John Brown, Vice President
Public Policy and Communications
Phone: 800-565-9044 x22447
Email: john.brown@jackson.com
 
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