8-K: Jackson Financial Q3 2025 Earnings Soar on Annuity Sales

Jackson Financial Inc. announced robust third-quarter 2025 financial results, driven by strong annuity sales, increased adjusted operating earnings, and significant capital returns to shareholders.

Summary

• Net income attributable to common shareholders was $65 million, or $0.92 per diluted share, in Q3 2025, a significant improvement from a $(480) million loss, or $(6.37) per diluted share, in Q3 2024.
• Adjusted operating earnings increased to $433 million, or $6.16 per diluted share, in Q3 2025, up from $350 million, or $4.60 per diluted share, in Q3 2024.
• Retail annuity sales grew 2% year-over-year to $5.4 billion, with record registered index-linked annuity (RILA) sales of $2.1 billion, up 28%.
• Institutional sales rose 34% to $1 billion in Q3 2025, and 142% to $3.5 billion for the nine months ended September 30, 2025.
• PPM America, Inc. (PPM) assets under management (AUM) increased 18% from Q3 2024 to $90.1 billion.
• The company maintained a robust capital position with total adjusted capital over $5.6 billion and an estimated risk-based capital (RBC) ratio of 579% at Jackson National Life Insurance Company (JNL) as of September 30, 2025.
• Returned $210 million to common shareholders in Q3 2025 through $154 million in share repurchases and $56 million in common dividends.
• Increased common share repurchase authorization by $1 billion in September 2025.
• Holding company cash and highly liquid securities exceeded $750 million as of September 30, 2025, well above the targeted $250 million minimum liquidity buffer.

Sentiment

Score: 9

Explanation: The filing reports exceptionally strong financial performance across key metrics, including a significant turnaround in net income, substantial growth in adjusted operating earnings, robust sales across multiple annuity product lines, and a strong capital position. The company also demonstrated a commitment to shareholder returns through repurchases and dividends, and management expressed confidence in future momentum. The only minor negative was a decline in fixed annuity sales, but this was offset by growth in other areas.

Positives

• Net income attributable to common shareholders significantly improved to $65 million in Q3 2025 from a $(480) million loss in Q3 2024.
• Adjusted operating earnings increased 23.7% to $433 million in Q3 2025, or $6.16 per diluted share, up from $350 million ($4.60 per diluted share) in Q3 2024.
• Retail annuity sales grew 2% to $5.4 billion in Q3 2025, reflecting continued strong demand.
• Record registered index-linked annuity (RILA) sales of $2.1 billion, a 28% increase from Q3 2024.
• Variable annuity sales increased 8% to $2.9 billion in Q3 2025, reflecting higher sales of products without lifetime benefits.
• Institutional sales surged 34% to $1 billion in Q3 2025 and 142% to $3.5 billion for the nine months ended September 30, 2025.
• PPM America, Inc. (PPM) assets under management (AUM) grew 18% to $90.1 billion from $76.7 billion in Q3 2024.
• Robust capital position with total adjusted capital over $5.6 billion as of September 30, 2025.
• Estimated risk-based capital (RBC) ratio at JNL of 579% as of September 30, 2025, up from the second quarter of 2025.
• Strong free cash flow of $216 million in Q3 2025, $719 million for the nine months, and nearly $1 billion over the past 12 months.
• Returned $210 million to common shareholders in Q3 2025, including $154 million in common share repurchases and $56 million in common dividends.
• Increased common share repurchase authorization by $1 billion in September 2025.
• Holding company cash and highly liquid securities of over $750 million as of September 30, 2025, exceeding the targeted $250 million minimum liquidity buffer.
• Adjusted operating return on equity attributable to common shareholders for the nine months ended September 30, 2025, was 14%, up from 13% in the comparable prior-year period.
• Corporate and Other segment pretax adjusted operating loss reduced to $(35) million from $(71) million, primarily due to lower general and administrative expense.

Negatives

• Fixed and fixed index annuity sales decreased 57% to $444 million in Q3 2025, compared to a strong sales level of $1 billion in Q3 2024.
• Higher mortality in the closed block segment partially offset adjusted operating earnings per share.
• Adjusted book value attributed to common shareholders decreased to $11.0 billion as of September 30, 2025, from $11.2 billion as of December 31, 2024, although the per share amount increased due to repurchases.

Risks

• Forward-looking statements are subject to known and unknown risks and uncertainties that may cause actual results to differ materially from those projected, expressed, or implied.
• Factors that could cause actual results to differ materially are reflected in Part I, Item 1A. Risk Factors and Part II, Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations in the Annual Report on Form 10-K for the year ended December 31, 2024, as filed with the U.S. Securities and Exchange Commission (SEC) on February 26, 2025, and elsewhere in the company's reports filed with the SEC.

Future Outlook

Jackson Financial Inc. believes it is well positioned to extend its momentum through the remainder of 2025 and into 2026, continuing its commitment to helping Americans achieve financial security. The company aims to capitalize on robust demand for spread lending and grow third-party business.

Management Comments

• "Our third quarter performance highlights the ongoing strength and momentum of our business as we advance toward our strategic goals." Laura Prieskorn, President and CEO.
• "Retail annuity sales grew year over year, driven by our broad and innovative product portfolio, including record RILA sales and the successful launch of our Jackson Income Assurance and Jackson Income Assurance Advisory fixed index annuities." Laura Prieskorn, President and CEO.
• "Our robust in-force book continued to deliver healthy free cash flow, generating $216 million in the quarter and nearly $1 billion over the past year." Laura Prieskorn, President and CEO.
• "In addition, we returned $210 million to common shareholders, increased our estimated RBC ratio, and further enhanced our already substantial excess cash position at the holding company." Laura Prieskorn, President and CEO.
• "Looking ahead, we believe we are well positioned to extend on this momentum through the remainder of 2025 and into 2026, continuing our commitment to helping Americans achieve financial security." Laura Prieskorn, President and CEO.

Industry Context

The strong performance in retail annuity sales, particularly RILAs, indicates continued robust demand for retirement income solutions in the current market environment. The growth in institutional sales and PPM AUM suggests effective capital deployment and asset management capabilities, aligning with broader trends of financial institutions seeking higher-yielding assets and diversified revenue streams. The company's focus on innovative product offerings like new fixed index annuities positions it competitively within the evolving annuity market.

Stakeholder Impact

• Shareholders: Positive impact due to significant increase in net income and adjusted operating earnings, substantial capital return ($210 million in Q3 2025), increased share repurchase authorization ($1 billion), and improved diluted EPS and adjusted operating EPS.
• Customers: Positive impact through a broad and innovative product portfolio, including new fixed index annuities (Jackson Income Assurance and Jackson Income Assurance Advisory), aimed at helping achieve financial security.
• Employees: Implied positive impact from a strong and growing business, though not explicitly stated.
• Creditors: Positive impact from a robust capital position (Total Adjusted Capital over $5.6 billion, RBC ratio of 579%) and strong liquidity at the holding company (over $750 million).

Next Steps

• Host a conference call on Wednesday, November 5, 2025, at 11 a.m. ET to review the third quarter results.
• Continue to advance toward strategic goals, including extending momentum through the remainder of 2025 and into 2026.
• Continue commitment to helping Americans achieve financial security.
• Monitor the investor relations website, press releases, SEC filings, public conference calls, presentations, and webcasts for key information.

Key Dates

Recommendation

The filing demonstrates exceptional financial performance with a dramatic turnaround in net income, significant growth in adjusted operating earnings, and robust sales across key annuity segments, particularly RILAs. The company's strong capital position, high RBC ratio, and substantial free cash flow generation, coupled with a clear commitment to returning capital to shareholders through increased repurchases and dividends, signal strong operational health and shareholder value creation. The positive outlook for 2025 and 2026 further reinforces confidence in the company's trajectory, making it a compelling 'strong buy' for investors.

Keywords

Annuities, Financial Services, Insurance, Jackson Financial, JXN, Q3 2025 Earnings, RILA, Variable Annuity, Fixed Annuity, Institutional Sales, Asset Management, PPM America, Share Repurchase, Dividends, Capitalization, RBC Ratio, Free Cash Flow, Adjusted Operating Earnings