Jackson Financial Inc. Q4 FY2025 earnings call

• Laura Prieskorn began with review of strategic actions, 2025 accomplishments, progress since separation and 2026 financial targets. 2025 was exceptional with over $1 billion free capital generation, closed strategic partnership with TPG. - Don Cummings discussed financial performance: adjusted operating earnings $455 million in 2025 full year, adjusted operating EPS $6.61 in 2025 4Q, 33% increase from prior year 4Q; book value per common share up 4% in 2025; Retail Annuities segment 27% growth in 2025 4Q, RILA sales in 2025 4Q record $2.3 billion, fixed index annuity contributed to 4Q sales; Institutional and Closed Block segments also had positive performance

Retail Annuities: 2025 full year retail annuity sales nearly $20 billion, highest since 2019; RILA sales in 2025 full year rose 22%, RILA account value at year-end $20 billion, 74% increase from 2024; fixed index annuity Jackson Income Assurance contributed to fourth quarter sales. Institutional: Pretax adjusted operating earnings up year-over-year due to higher spread income from expanding book of business. Closed Block: Pretax adjusted operating earnings improved compared to prior year quarter mainly due to favorable actuarial assumptions update

2026 expects free capital generation to reach or exceed $1.2 billion; capital return target for 2026 set at $900 million to $1.1 billion, 16% increase from 2025 actual $862 million; Board approved fifth increase in quarterly dividend to $0.90 per share

Actuarial assumption review can have impacts from policyholder behavior assumptions like lapses; equity market movements can affect net flows and hedging results; potential for needing to contribute capital to Brooke Re if actuarial review charges and lapses remain high

Q: About capital levels and tracking for Brooke Re, A: Don Cummings explained Brooke Re's progress since 2024, reinsured payout annuity liabilities and established Hickory Re, with growth capital from TPG freeing up excess capital.

Q: On $27 million capital generation and impact of surrenders and volatility, A: Don Cummings said 2025 had headwinds from early Q2 volatility and higher-than-expected surrenders but Brooke Re is expected to be self-sustaining.

Q: On TPG partnership and growth in retail annuity platform, A: Laura Prieskorn and Don Cummings mentioned progress in spread products, new fixed index annuity product, leveraging TPG assets for various product lines, and expectation of strong retail annuity sales results.

Q: On Hickory Re cash flow and excess capital uses, A: Don Cummings said cash flow from Hickory Re could be taken to HoldCo, and excess capital is focused on growth and capital return.

Q: On Brooke Re equity and annual actuarial review charges, A: Don Cummings and Lin Sun discussed Brooke Re's balance sheet strength, and actuarial assumption review process with updates on lapses and assumptions