Jackson National Life Insurance Company® (Jackson) generated $19.6 billion of total sales and deposits1 during the first nine months of 2012, driven by $15.3 billion of variable annuity (VA) sales. VA sales were up 11.3 percent over the $13.7 billion in VA sales recorded during the first nine months of 2011. Sales of Elite AccessSM totaled $630.1 million during the period from launch on March 5, 2012, through September 30, 2012. Excluding Elite Access, Jackson’s overall VA sales growth during the first nine months of 2012 was 6.8 percent year over year.
“Jackson’s Long-Term Smart® strategy has delivered strong, sustainable performance for all of our stakeholders,” said Mike Wells, Jackson’s president and chief executive officer. "At the heart of this strategy is a commitment to maintain a strong capital position. In the first nine months of 2012, Jackson completed the $663.3 million2 acquisition of SRLC America Holding Corp (SRLC) and remitted a $400.0 million dividend to its parent company, Prudential plc (NYSE: PUK), while ending the period with more than $4.1 billion of regulatory adjusted capital. Jackson’s strong capital position reflects both the quality of the in-force book and our disciplined approach to writing new business, and it ensures that Jackson can continue delivering value for all of its stakeholders over the long term."
During the first nine months of 2012, Jackson increased sales of fixed and fixed index annuities (FIAs), as competitive conditions became more favorable. Jackson has long taken a consistent approach toward crediting rates and benefit levels within its fixed and FIA products. Industry-wide changes during the first nine months of 2012 brought competing products more in line with Jackson’s offering and, as a result, Jackson benefited from a flight to quality. Compared to the same period of the prior year, fixed annuity sales of $713.5 million were up 34.5 percent, and FIA sales of $1.2 billion were up 13.5 percent.
Curian Capital® LLC (Curian), Jackson’s retail asset management subsidiary that provides innovative fee-based managed accounts and investment products, continued to generate positive net flows during the nine-month period, which increased assets under management to $10.4 billion as of September 30, 2012, up from $7.3 billion as of December 31, 2011.
"In today’s challenging economic environment, advisors are struggling to find solutions to growing and managing their clients’ assets, in order to provide an income that will last throughout their clients’ retirement years,” said Clifford Jack, executive vice president and head of retail for Jackson. "Jackson’s success is driven by our ability to construct sophisticated financial products that address problems the average retail consumer cannot solve on his or her own.”
As previously announced, Jackson has undertaken a number of initiatives to moderate the growth of its sales of variable annuities with guarantees for the remainder of the year. These actions will help to manage through a period of rapid change in competitor products while avoiding the risk of concentration to any one specific year.
On September 4, 2012, Jackson completed the acquisition of SRLC from Swiss Re for an initial consideration of $663.3 million. SRLC was the U.S. holding company of Reassure America Life Insurance Company (REALIC). The acquisition helps diversify Jackson’s sources of earnings by increasing the amount of income generated from underwriting activities. Jackson has begun integrating REALIC’s book of business and believes the transaction will be immediately accretive to its pre-tax earnings while having a modest impact on its statutory risk based capital ratio.
Following the SRLC acquisition announcement, 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 October 31, 2012, Jackson had the following ratings:3
- 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.
1Sales and deposits from Jackson’s subsidiaries, Jackson National Life Insurance Company of New York® and Curian, have been included in Jackson’s total sales and deposits figure.
2In the announcement of this transaction on May 31, 2012, the consideration of $621.0 million was based on an estimated closing balance sheet for SRLC. The consideration of $663.3 million was based on an updated estimate of the closing balance sheet, but is still subject to adjustment. The final purchase price may be further adjusted to reflect potential differences, if any, between the estimated closing balance sheet and the final closing balance sheet. These potential differences may include adjustments related to market value movements on capital and surplus, unwinding of expected future profits, finalization of the extraction of business that is not part of the acquisition and associated tax attributes. The acquisition received all appropriate regulatory approvals.
3Financial 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.
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).
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 similar 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). 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 in England and Wales. Prudential plc and its affiliated companies constitute one of the world's leading financial services groups. It provides insurance and financial services through its subsidiaries and affiliates throughout the world. It has been in existence for over 160 years and has $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.