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1. Company Snapshot

1.a. Company Description

Jackson Financial Inc., through its subsidiaries, primarily provides a suite of annuities to retail investors in the United States.The company operates through three segments: Retail Annuities, Institutional Products, and Closed Life and Annuity Blocks.The Retail Annuities segment offers various retirement income and savings products, including variable, fixed index, fixed, and immediate payout annuities, as well as registered index-linked annuities and lifetime income solutions.


The Institutional Products segment provides traditional guaranteed investment contracts; funding agreements comprising agreements issued in conjunction with its participation in the U.S. federal home loan bank program; and medium-term funding agreement-backed notes.The Closed Life and Annuity Blocks segment offers various protection products, such as whole life, universal life, variable universal life, and term life insurance products, as well as fixed, fixed index, and payout annuities.This segment also provides a block of group payout annuities.


The company also offers investment management services.It sells its products through a distribution network that includes independent broker-dealers, banks and other financial institutions, wirehouses and regional broker-dealers, and independent registered investment advisors, third-party platforms, and insurance agents.Jackson Financial Inc.


was formerly known as Brooke (Holdco1) Inc.and changed its name to Jackson Financial Inc.in July 2020.


The company was incorporated in 2006 and is headquartered in Lansing, Michigan.

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1.b. Last Insights on JXN

Jackson Financial Inc.'s recent performance was driven by strong Q4 2025 earnings, with record retail annuity sales of $5.9 billion, up 27% from Q4 2024. The company's variable annuity sales were up 1% from the same period last year. Additionally, Jackson Financial announced a 12.5% increase in its quarterly dividend to $0.90 per share. Analysts have a consensus "Hold" rating with a price target of $113.00. Institutional investors, such as Four Tree Island Advisory LLC, have increased their stakes in the company.

1.c. Company Highlights

2. Jackson Financial's 2025 Earnings: A Strong Year for Spread-Based Products

Jackson Financial delivered a robust financial performance in 2025, with adjusted operating earnings growing nearly 12% to drive strong results. The company's earnings per share (EPS) came in at $6.61, beating analyst estimates of $5.84. Revenue growth was also impressive, with total sales and distribution setting records. The company's free capital generation reached over $1 billion, exceeding expectations, and returned $862 million to common shareholders, surpassing the high end of its capital return target range.

Publication Date: Feb -20

📋 Highlights
  • Exceeded 2025 Financial Targets: Generated $1.4B free capital, surpassing $1B target, and returned $862M to shareholders via dividends/share buybacks.
  • Retail Annuities Growth: RILA sales hit record $2.3B (up 53% YoY), driving 27% YoY segment growth and $268B average retail annuity AUM.
  • Capital Return Boost: Raised 2026 capital return targets to $900M–$1.1B (16% increase from 2025), with $1.2B free capital guidance assuming 5% equity returns.
  • Strong Balance Sheet Metrics: RBC ratio at 567% (above 250% minimum), $691M cash buffer, and Brooke Re capital of $1.7B (down from $2.1B due to reinsurance transactions).
  • TPG Partnership Impact: New FIA product contributed $800M in Q4, with TPG's expertise in direct lending expected to drive spread-based business growth and liquidity expansion.

Segment Performance

The Retail Annuities segment was a key driver of growth, with sales increasing 27% year-over-year and 10% sequentially. The company's Registered Index-Linked Annuity (RILA) sales reached a record $2.3 billion, up 53% from the prior year quarter. The segment's pretax adjusted operating earnings saw strong momentum, driven by the expansion of its spread-based products, including fixed and fixed index annuities, as well as institutional products.

Partnership with TPG

Jackson's partnership with TPG is expected to drive growth in its spread-based business, with the company introducing new products and leveraging TPG's asset allocation strategy. The partnership is expected to contribute to the company's long-term growth and increase its capital and liquidity position. As Don Cummings, CFO, noted, "We've made significant progress in spread products, introducing a new fixed index annuity product that contributed $800 million in the quarter."

Valuation and Dividend Yield

Jackson Financial's current valuation metrics indicate a relatively high Price-to-Book Ratio (P/B) of 0.8. The company's Dividend Yield is 2.81%, which is attractive for income investors. With a strong capital position and a commitment to returning capital to shareholders, Jackson Financial is well-positioned for continued success. The company's RBC ratio came in at 567%, comfortably above its minimum target, and its free cash flow yield is 73.24%, indicating a strong ability to generate cash.

Outlook

Jackson Financial expects to generate at least $1.2 billion in free capital in 2026, assuming equity markets deliver a 5% return and interest rates move in line with the year-end forward curve. The company is increasing its capital return targets, setting a 2026 target of $900 million to $1.1 billion, up from the $862 million returned in 2025. With a strong balance sheet and a diversified set of competitive products, Jackson Financial is well-positioned for continued growth and success.

3. NewsRoom

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Small Cap Value ETFs: IWN Boasts Greater Small Cap Exposure But SLYV Has a Higher Yield

Mar -16

Source:

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Algert Global LLC Buys 43,239 Shares of Jackson Financial Inc. $JXN

Mar -15

Source: defenseworld.net

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Jackson Earns Award for Highest Customer Service in Financial Industry for 14th Consecutive Year

Mar -04

Source: businesswire.com

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Counterpoint Mutual Funds LLC Has $347,000 Position in Jackson Financial Inc. $JXN

Feb -26

Source: defenseworld.net

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Jackson Financial Inc. (JXN) Q4 2025 Earnings Call Transcript

Feb -19

Source: seekingalpha.com

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Jackson Announces Excellent Fourth Quarter and Full Year 2025 Results

Feb -18

Source: businesswire.com

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Jackson Announces Increase to First Quarter 2026 Common Stock Dividend

Feb -18

Source: businesswire.com

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Brokerages Set Jackson Financial Inc. (NYSE:JXN) PT at $113.00

Feb -16

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.04%)

6. Segments

Retail Annuities

Expected Growth: 4.65%

Jackson Financial Inc.'s Retail Annuities growth of 4.65% is driven by increasing demand for retirement savings, rising popularity of fee-based advisory channels, and expansion into underserved markets. Additionally, the company's digital platform enhancements, competitive product offerings, and strategic partnerships have contributed to this growth.

Reconciling Items

Expected Growth: 8.37%

Jackson Financial Inc.'s 8.37% growth is driven by increasing demand for wealth management services, strategic acquisitions, and expansion into new markets. Additionally, the company's focus on digital transformation, cost savings initiatives, and a favorable interest rate environment have contributed to its growth momentum.

Closed Life and Annuity Blocks

Expected Growth: 4.65%

The 4.65% growth in Closed Life and Annuity Blocks from Jackson Financial Inc. is driven by increasing demand for retirement products, favorable interest rates, and effective cost management. Additionally, the company's strong distribution network, improved risk management, and strategic reinsurance agreements have contributed to the growth.

Institutional Products

Expected Growth: 7.9%

Jackson Financial Inc.'s Institutional Products segment growth of 7.9% is driven by increasing demand for retirement solutions, expansion of distribution channels, and strategic partnerships. Additionally, the company's focus on fee-based products, such as annuities and investment products, has contributed to the growth. Furthermore, the rising popularity of environmental, social, and governance (ESG) investing has also boosted demand for Jackson's institutional products.

Corporate and Other Segment

Expected Growth: 4.63%

The 4.63% growth in Jackson Financial Inc.'s Corporate and Other Segment is driven by increased demand for retirement solutions, expansion of distribution channels, and strategic investments in digital capabilities. Additionally, the segment has benefited from favorable market conditions, improved operational efficiency, and effective cost management.

7. Detailed Products

Retirement Plans

Jackson Financial Inc. offers a range of retirement plans, including 401(k), IRA, and pension plans, designed to help individuals and businesses save for their future.

Annuities

Jackson Financial Inc. provides a variety of annuity products, including fixed, variable, and indexed annuities, designed to provide a steady income stream in retirement.

Life Insurance

Jackson Financial Inc. offers a range of life insurance products, including term life, whole life, and universal life insurance, designed to provide financial protection for loved ones.

Investment Products

Jackson Financial Inc. provides a range of investment products, including mutual funds, exchange-traded funds (ETFs), and separately managed accounts, designed to help individuals and businesses grow their wealth.

Wealth Management

Jackson Financial Inc. offers comprehensive wealth management services, including financial planning, investment management, and estate planning, designed to help high-net-worth individuals and families manage their wealth.

8. Jackson Financial Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Jackson Financial Inc. is moderate due to the presence of alternative financial institutions and online platforms that offer similar services.

Bargaining Power Of Customers

The bargaining power of customers is high due to the availability of multiple financial institutions and online platforms that offer similar services, giving customers the power to choose.

Bargaining Power Of Suppliers

The bargaining power of suppliers is low due to the company's strong relationships with its suppliers and the availability of multiple suppliers in the market.

Threat Of New Entrants

The threat of new entrants is moderate due to the presence of regulatory barriers and the need for significant capital investment to enter the market.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of multiple financial institutions and online platforms that offer similar services, leading to intense competition in the market.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 16.75%
Debt Cost 8.98%
Equity Weight 83.25%
Equity Cost 11.66%
WACC 11.21%
Leverage 20.12%

11. Quality Control: Jackson Financial Inc. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Jackson Financial

A-Score: 6.6/10

Value: 8.2

Growth: 4.3

Quality: 7.8

Yield: 8.0

Momentum: 5.0

Volatility: 6.0

1-Year Total Return ->

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CNO Financial Group

A-Score: 6.0/10

Value: 6.6

Growth: 6.4

Quality: 4.4

Yield: 4.0

Momentum: 6.0

Volatility: 8.3

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Stock-Card
Primerica

A-Score: 5.9/10

Value: 5.4

Growth: 7.2

Quality: 6.8

Yield: 3.0

Momentum: 4.0

Volatility: 9.0

1-Year Total Return ->

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Stock-Card
Unum

A-Score: 5.8/10

Value: 5.7

Growth: 5.6

Quality: 5.1

Yield: 5.0

Momentum: 6.0

Volatility: 7.7

1-Year Total Return ->

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Stock-Card
F&G Annuities & Life

A-Score: 5.7/10

Value: 8.8

Growth: 8.6

Quality: 5.9

Yield: 5.0

Momentum: 0.5

Volatility: 5.7

1-Year Total Return ->

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Stock-Card
American Equity

A-Score: 5.4/10

Value: 9.5

Growth: 7.3

Quality: 6.2

Yield: 0.0

Momentum: 6.0

Volatility: 3.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

103.05$

Current Price

103.05$

Potential

-0.00%

Expected Cash-Flows