DEF 14A: Jackson Financial Inc. Aims for Continued Growth and Shareholder Returns in 2025

Jackson Financial Inc. reports a successful 2024, exceeding financial targets and increasing capital return to shareholders, with a positive outlook for 2025.

Summary

• Jackson Financial Inc. had a successful year in 2024, meeting or exceeding key financial targets.
• The company established Brooke Life Reinsurance Company (Brooke Re) in January 2024, which has stabilized capital generation and provided more predictable financial results.
• Jackson's total shareholder return was in the 94th percentile compared to its peer group.
• The company returned $631 million to shareholders in 2024, a 48% increase over 2023, representing $8.22 per share.
• The quarterly dividend was raised by 14% to $0.80 per common share in February 2025.
• Share repurchases in 2024 totaled $415 million, reducing outstanding shares by over 21% since the company went public.
• The company has a share repurchase authorization of over $600 million at the start of 2025.
• The capital return target for 2025 is set at $700-800 million.
• Jackson experienced its most diversified year of retail annuity sales since becoming an independent public company.
• The company's corporate responsibility efforts saw over 50% associate participation in volunteer events in 2024.

Sentiment

Score: 9

Explanation: The document presents a highly positive outlook, highlighting strong financial performance, increased shareholder returns, and strategic initiatives. The company's commitment to corporate responsibility and shareholder engagement further contributes to the positive sentiment.

Positives

• Jackson met or exceeded its key financial targets in 2024.
• The company has a strong statutory capital position.
• Jackson has robust levels of excess cash at the holding company.
• The company is committed to returning capital to shareholders.
• Jackson experienced considerable year-over-year sales growth in its enhanced registered index-linked annuity (RILA) suite.
• The company has a healthy and profitable in-force book of business.
• Jackson has a diversified product range and strong distribution partnerships.
• The company has a strong risk-management culture.
• Jackson has a high associate engagement rate and a positive corporate culture.

Risks

• The document mentions forward-looking statements are subject to known and unknown risks and uncertainties that may cause actual results to differ materially.
• These risks are detailed in Jackson Financial Inc.'s Annual Report on Form 10-K, as filed with the U.S. Securities and Exchange Commission (the SEC) on February 26, 2025.

Future Outlook

Jackson has increased its target annual capital return range each year since becoming an independent public company and has set a 2025 capital return target of $700-800 million. The company is committed to growing and protecting retirement savings and income to help Americans achieve financial freedom for life.

Management Comments

• Jackson remained focused on its core strengths and capabilities in 2024, delivering another successful year for stakeholders.
• We met or exceeded each of our 2024 key financial targets.
• We have consistently returned capital to our shareholders through both common dividends and share repurchases over the last three years.
• The industry experienced record retail annuity sales for the third straight year as more Americans seek investment protection and solutions offering guaranteed lifetime income.
• Jackson continues to evolve its products to meet this market demand, experiencing our most diversified year of retail annuity sales since becoming an independent, public company.

Industry Context

The industry experienced record retail annuity sales for the third straight year as more Americans seek investment protection and solutions offering guaranteed lifetime income. Jackson continues to evolve its products to meet this market demand, experiencing its most diversified year of retail annuity sales since becoming an independent, public company.

Comparison to Industry Standards

• Jackson's total shareholder return when compared to peer group companies within the S&P Insurance Select Industry Index was in the 94th percentile, underscoring the Company's strong performance.
• The peer group used as a reference point for 2024 executive compensation decisions included Ameriprise Financial, Brighthouse Financial, CNO Financial, Corebridge Financial, Equitable, Genworth Financial, Guardian Life, Lincoln National, Pacific Life, Principal Financial, Unum Group, and Voya Financial.

Management Changes

Corporate Governance

Related Party Transactions

• The document discloses various related party transactions, including commercial relationships with entities affiliated with directors and significant shareholders, such as Neuberger Berman, BlackRock, Vanguard and Dimensional Fund Advisors LP.
• These transactions are stated to be in the ordinary course of business and on arms-length terms.

Stakeholder Impact

• Shareholders: Increased capital returns and strong financial performance.
• Employees: Positive corporate culture and associate engagement.
• Customers: Commitment to providing valuable retirement solutions.
• Communities: Corporate responsibility efforts and volunteerism.

Next Steps

• Shareholders are encouraged to participate in the annual meeting of shareholders on May 22, 2025.
• The company intends to continue an open dialogue with shareholders through its regular outreach program in 2025 and beyond.
• The Company intends to publish its next Corporate Responsibility Report in or around May 2025.

Key Dates

Keywords

shareholder return, capital return, annuity sales, financial targets, Jackson Financial, share repurchases, dividends, governance, executive compensation, risk management, retirement services, Brooke Re