Jackson National Life Insurance Company® (Jackson) announced today the company is approaching the upper range for calendar year 2012 for total premium from variable annuities (VAs) that offer optional guaranteed benefits. Jackson estimates it has approximately $1 billion in remaining capacity. As in prior years, Jackson will manage the volume of its VA business commensurate with the overall growth of its balance sheet.
“Jackson is enjoying another very successful year with strong sales volumes in variable annuities reflecting the quality of our product and service proposition,” said Mike Wells, Jackson president and chief executive officer. “While it is always a difficult decision to limit new business production in our highly productive growth and service culture, it is consistent with Jackson’s practice to actively manage our risk to avoid a concentration of exposure to any single product in any one year. Managing new business volumes within our pre-determined ranges ensures that our portfolio remains well-diversified by year of origination and, therefore, is well-positioned from a risk management perspective to continue performing across economic and market cycles. Jackson’s financial health remains strong and our portfolio of variable annuities is appropriately priced and hedged for the current economic climate, providing good value for our customers and shareholders.”
“Jackson remains fully committed to the variable annuity business,” Wells continued. “Our conservative approach to risk management will help us maintain the confidence, trust and credibility we have earned leading up to, and successfully managing through, the global financial crisis. Our sound financial discipline has been at the heart of our ability to forge strong, trusted ongoing business relationships, which will allow Jackson to continue delivering value to all of its stakeholders over the long term.”
To manage sales volumes, Jackson will no longer accept new 1035 exchange business or qualified transfers of assets for VAs that offer optional guaranteed benefits as of 4 p.m. Eastern Standard Time on Tuesday, November 13, 2012. As of December 15, 2012, Jackson will resume accepting new 1035 exchange business and qualified transfers of assets, if total premium at that time is within the $1 billion in remaining capacity. No limitation will be placed on new 1035 exchange business or qualified transfers of assets for Jackson’s Elite AccessSM product, which offers “alternative” investment options that are not conducive to guaranteed benefits.
“We are proactively communicating with our distribution partners about Jackson approaching the high end of the range for 2012 sales of our very popular VAs that offer optional guaranteed benefits,” said Clifford Jack, executive vice president and head of retail for Jackson. “Our wholesaling and service teams are well-positioned to implement the necessary actions to limit production with minimal disruptions to our partners and their clients.”
Jackson was named the VA firm with the strongest personal connection with advisors and prospects, according to the Cogent Research Advisor Touchpoints™ 2012 survey of more than 1,700 retail investment advisors across all major distribution channels. Of the respondents surveyed, 49 percent of current Jackson users and 11 percent of prospects cited Jackson as the VA firm with which they feel the strongest personal connection.
The Cogent Research Advisor Touchpoints™ 2012 consisted of an online survey of 1,741 registered financial advisors, conducted between March 13 and April 18, 2012. Survey participants were required to have an active book of business of at least $5.0 million, and offer investment advice or planning services to individual investors.
During 2012, 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 nine years. As of November 8, 2012, Jackson had the following ratings:1
- 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.
About Jackson National Life Insurance Company
With $129.9 billion in assets (IFRS)*, Jackson National Life Insurance Company (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.
*Jackson has $129.9 billion in total IFRS assets and $119.0 billion in IFRS policy liabilities primarily set aside to pay future policyowner benefits (as of 6/30/12).
1Financial strength ratings do not apply to the principal amount or investment performance of the separate account or underlying investments of variable products.
Before investing in variable products, investors should carefully consider the investment objectives, risks, charges and expenses of the variable product and its underlying investment options. The current contract prospectus and underlying fund prospectuses, which are contained in the same document, provide this and other important information. Please contact your representative or the Company to obtain the prospectuses. Please read the prospectuses carefully before investing or sending money.
Elite Access Fixed and Variable Annuity (VA650, VA 660) is issued by Jackson National Life Insurance Company (Home Office: Lansing, Michigan) and in New York (VA650NY, VA 660NY) by Jackson National Life Insurance Company of New York (Home Office: Purchase, New York). Variable annuities are distributed by Jackson National Life Distributors LLC, member FINRA, and may not be available in all states, and state variations apply. This product has limitations and restrictions, including withdrawal charges and excess interest adjustments (interest rate adjustments in New York) where applicable.
Jackson issues other variable annuities with different features, benefits, limitations and charges. Discuss Jackson’s other variable annuity options with your representative or contact Jackson for more information.
Annuities are issued by Jackson National Life Insurance Company (Home Office: Lansing, Michigan) and Jackson National Life Insurance Company of New York (Home Office: Purchase, New York). Variable annuities are distributed by Jackson National Life Distributors LLC and may not be available in all states, and state variations may apply. These contracts have limitations and restrictions, including possible withdrawal charges, recapture charges and excess interest adjustments. Contact your representative or the Company for more information.
Please remember that a Jackson annuity is intended to be a long-term, tax-deferred vehicle for retirement. An annuity's earnings are taxable as ordinary income when withdrawn and, if taken before age 59 1/2, may be subject to a 10% additional tax. Variable annuities involve investment risks and may lose value.
Jackson National Life Insurance Company is an indirect subsidiary of Prudential plc, a company incorporated and with its principal place of business in the United Kingdom. Prudential plc and its affiliated companies constitute one of the world's leading financial services groups. It provides insurance and financial services directly and through its subsidiaries and affiliates throughout the world. It has been in existence for over 160 years and had $570 billion in assets under management as of June 30, 2012. 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.
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.