LANSING, Mich.--(BUSINESS WIRE)--November 03, 2026--
Jackson Financial Inc. (NYSE: JXN) (Jackson(R) ) today announced its financial results for the third quarter ended September 30, 2026.
Third Quarter 2026 Key Highlights
-- Record retail annuity sales1 of $6.5 billion, up 22% from the third
quarter of 2025, including record registered index-linked annuity $(RILA)$
sales of $3.0 billion, up 44% from the third quarter of 2025
-- Variable annuity (VA) sales1 of $2.8 billion were down 3% from
the third quarter of 2025
-- Fixed annuity (FA) and fixed index annuity (FIA) sales of $796
million, up 79% from the third quarter of 2025, driven by our
Jackson Income AssuranceSM Suite
-- Robust spread product sales are supported by capabilities added at PPM
America, Inc. (PPM), our asset management subsidiary, that broaden the
range of assets we can source, as well as our strategic partnership with
TPG Inc. (TPG). The growth in Jackson's general account, combined with a
focus on growing PPM's third-party business, contributed to a 13%
increase in PPM's assets under management (AUM) from the third quarter of
2025, to nearly $102 billion
-- Net income attributable to $Jackson Financial Inc(JXN-A)$. common shareholders
of $847 million, or $12.37 per diluted share in the third quarter of
2026, compared to $65 million, or $0.92 per diluted share in the third
quarter of 2025
-- Adjusted operating earnings2 of $517 million, or $7.55 per diluted
share in the third quarter of 2026, compared to $433 million, or $6.16
per diluted share in the third quarter of 2025, primarily reflecting
higher spread income from growth in average spread block AUM and a
reduced share count due to repurchases
-- Adjusted operating earnings per diluted share excluding notable items3
of $7.67 in the third quarter of 2026, up from $5.98 in the third quarter
of 2025
-- Robust capital position at the operating company, with total adjusted
capital of $5.9 billion as of September 30, 2026, and an estimated
risk-based capital (RBC) ratio at Jackson National Life Insurance Company
(JNL) of 524%
-- Free capital generation of $281 million in the third quarter of 2026,
after reflecting the increased capital requirement supporting strong new
sales growth
-- Jackson Financial Inc. (Parent Company only) net cash provided by (used
in) operating activities of $6 million in the third quarter of 2026,
compared to $22 million in the third quarter of 2025
-- Free cash flow2 of $275 million in the third quarter of 2026 reflecting
distributions from our operating company of $325 million
-- Returned $291 million to common shareholders in the third quarter of
2026, up 39% from the third quarter of 2025, with $230 million of common
share repurchases and $61 million in common dividends
-- Cash and highly liquid securities at the holding company of nearly $1.4
billion as of September 30, 2026, well above our targeted $325 million
minimum liquidity buffer
-- Received Board approval for a $1 billion increase to the existing
common share repurchase authorization
Don Cummings, Chief Executive Officer and President of Jackson, stated, "Our third quarter results reflect the strength of our business and consistent execution against our strategy. We grew adjusted operating earnings per share, while delivering record retail annuity sales, up 22% year over year. Our distribution reach will be further enhanced by our recent announcement that Jackson has been named the exclusive provider of annuities for AARP members through the AARP(R) Annuity Program from Jackson(R) . Through this program, a distinct set of Jackson annuities will be available directly to millions of AARP members, helping them pursue long-term financial stability. Our spread business continues to perform well, driven by our broad, flexible product lineup, the enhanced capabilities of PPM, and our growing partnership with TPG. Our robust in-force book of business delivered substantial progress toward our financial targets, with $281 million of free capital generation in the third quarter, $291 million of capital return to common shareholders, and healthy levels of excess cash at the holding company. We believe we are well positioned for the future and remain committed to helping Americans achieve financial freedom for life."
Consolidated Third Quarter 2026 Results
The Company reported net income attributable to Jackson Financial Inc. common shareholders of $847 million, or $12.37 per diluted share for the three months ended September 30, 2026, compared to $65 million, or $0.92 per diluted share for the three months ended September 30, 2025. Third quarter net income included a more favorable net hedging result versus the prior year's third quarter. The third quarter of 2026 also included a $337 million gain from business reinsured to third parties, while the prior year's third quarter reported a loss of $176 million. The results of reinsured business can differ significantly from quarter to quarter; however, these results do not impact our statutory capital or free cash flow and have a minimal net impact on shareholders' equity because of the offset from related changes in accumulated other comprehensive income (AOCI). We believe the non-GAAP measure of adjusted operating earnings better represents the underlying performance of our business as adjusted operating earnings exclude, among other things, changes in the fair value of derivative instruments and market risk benefits tied to market movements.
Adjusted operating earnings for the three months ended September 30, 2026, were $517 million, or $7.55 per diluted share, compared to $433 million or $6.16 per diluted share for the three months ended September 30, 2025. The current quarter per share amount reflected higher spread income from growth in average spread block AUM and a reduced share count due to share repurchases.
Total common shareholders' equity was $7.9 billion or $117.72 per diluted share as of September 30, 2026, compared to $9.4 billion or $138.17 per diluted share as of December 31, 2025. Adjusted book value attributed to common shareholders(4) was $11.1 billion or $164.47 per diluted share as of September 30, 2026, compared to $10.6 billion or $155.78 per diluted share as of December 31, 2025. The per share increase was primarily driven by year-to-date adjusted operating earnings of $1.4 billion, partially offset by capital return during the first nine months of the year. Return on equity attributable to common shareholders for the nine months ended September 30, 2026 and 2025, was 15.7% and 2.7%, respectively. Adjusted operating return on equity attributable to common shareholders(4) for the nine months ended September 30, 2026, was 17.3%, up from 14.0% in the comparable period in the prior year.
Segment Results -- Pretax Adjusted Operating Earnings(5)
Three Months Ended
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(in millions) September 30, 2026 September 30, 2025
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Retail Annuities $638 $494
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Institutional Products 23 31
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Closed Life and Annuity Blocks (3) 15
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Corporate and Other (46) (35)
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Total(5) $612 $505
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Retail Annuities
Retail Annuities reported pretax adjusted operating earnings of $638 million in the third quarter of 2026, compared to $494 million in the third quarter of 2025. The current quarter results primarily reflect higher spread income resulting from growth in average RILA and FIA AUM.
Total retail annuity sales(6) of $6.5 billion in the third quarter of 2026 were up from $5.4 billion in the third quarter of 2025. VA sales(6) of $2.8 billion in the third quarter were down slightly from $2.9 billion in the third quarter of 2025. Record RILA sales of $3.0 billion in the third quarter were up from $2.1 billion in the third quarter of 2025. FA and FIA sales in the third quarter of $796 million were up from $444 million in the third quarter of 2025.
Institutional Products
Institutional Products reported pretax adjusted operating earnings of $23 million in the third quarter of 2026, compared to $31 million in the third quarter of 2025, reflecting lower spread income. The segment reported sales of $755 million in the quarter, compared to $1.0 billion in the third quarter of 2025. This level of sales reflects continued demand for spread lending and our disciplined, opportunistic approach to the institutional market. Net flows were $648 million in the third quarter of 2026, and total account value of $11.4 billion was up from $10.9 billion in the third quarter of 2025.
Closed Life and Annuity Blocks
Closed Life and Annuity Blocks reported pretax adjusted operating income (loss) of $(3) million in the third quarter of 2026, compared to $15 million in the third quarter of 2025, primarily reflecting lower limited partnership income, partially offset by decreases in reserves from the runoff of in-force business.
Corporate and Other
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