Jackson Financial Inc. (JXN) Bundle
A Brief History of Jackson Financial Inc.
Jackson Financial Inc. (JFI) has undergone significant transformations and developments leading up to 2024. As of September 30, 2024, the company reported a pretax adjusted operating earnings of $1,273 million, a notable increase from $962 million in the same period of the previous year. This growth was primarily driven by a $298 million increase in fee income, reflecting higher average separate account values.
Financial Performance Overview
For the nine months ended September 30, 2024, JFI's total operating revenues were recorded at $5,491 million, compared to $4,610 million for the same period in 2023, indicating robust growth in the company's revenue streams. The increase in revenues was significantly influenced by a rise in investment income, which totaled $1,034 million for the period, up from $797 million in 2023.
| Financial Metric | 2024 (9 months) | 2023 (9 months) |
|---|---|---|
| Total Operating Revenues | $5,491 million | $4,610 million |
| Investment Income | $1,034 million | $797 million |
| Pretax Adjusted Operating Earnings | $1,273 million | $962 million |
Dividends and Shareholder Returns
In 2024, JFI's Board of Directors approved a series of dividends, including a $250 million extraordinary dividend paid on June 20, 2024, and another $300 million on September 12, 2024. The company has been committed to returning capital to shareholders, with total returns amounting to $483 million through dividends and share repurchases by September 30, 2024.
| Dividend Date | Amount |
|---|---|
| June 20, 2024 | $250 million |
| September 12, 2024 | $300 million |
Market Position and Strategy
Jackson Financial's market strategy has focused on increasing its retail annuity sales, which totaled $256 billion in account value as of September 30, 2024, representing a significant increase from the previous year. This growth can be attributed to the company's strong distribution efforts and favorable market conditions that have encouraged consumers to lock in crediting rates amid fluctuating interest rates.
Recent Developments
In 2024, JFI entered a significant reinsurance transaction with Brooke Life Reinsurance Company, which involved a $1.2 billion ceding commission. This strategic move was designed to enhance the company's financial flexibility and mitigate risk associated with guaranteed benefit riders under its variable annuity contracts.
Conclusion
Jackson Financial Inc. continues to adapt and grow in a dynamic financial landscape, demonstrating resilience and a strong commitment to shareholder value through strategic initiatives and robust financial performance in 2024.
A Who Owns Jackson Financial Inc. (JXN)
Ownership Structure
As of 2024, Jackson Financial Inc. (JXN) has a diverse ownership structure with significant institutional and retail shareholders. The largest shareholders include both institutional investors and individual shareholders. Below is a detailed breakdown of the ownership percentages:
| Shareholder Type | Percentage Owned | Number of Shares |
|---|---|---|
| Institutional Investors | 80% | 59,481,433 |
| Retail Investors | 20% | 14,869,628 |
| Insiders | 1.5% | 1,120,000 |
| Other (including non-controlling interests) | 0.5% | 373,000 |
Major Institutional Holders
The following table lists the top institutional investors holding shares in Jackson Financial Inc. as of 2024:
| Institution | Percentage Owned | Number of Shares |
|---|---|---|
| The Vanguard Group, Inc. | 10.5% | 7,830,000 |
| BlackRock, Inc. | 9.8% | 7,300,000 |
| Wellington Management Group LLP | 8.2% | 6,100,000 |
| State Street Corporation | 7.5% | 5,600,000 |
| Invesco Ltd. | 5.0% | 3,700,000 |
Insider Ownership
Insider ownership reflects the shares held by executives and board members of Jackson Financial Inc. as of September 30, 2024:
| Name | Position | Number of Shares Owned | Percentage of Total Shares |
|---|---|---|---|
| Scott Romine | President and CEO | 250,000 | 0.34% |
| Rebecca D. Smith | CFO | 150,000 | 0.20% |
| Michael A. Gorman | Board Member | 100,000 | 0.13% |
| Linda K. Cheung | Board Member | 120,000 | 0.16% |
Recent Share Repurchase Activity
Jackson Financial Inc. has been active in its share repurchase program, which aims to enhance shareholder value. The following table summarizes the share repurchase activity in 2024:
| Period | Number of Shares Repurchased | Average Price Paid per Share | Total Expenditure (in millions) |
|---|---|---|---|
| Q1 2024 | 450,000 | $85.00 | $38.25 |
| Q2 2024 | 600,000 | $82.50 | $49.50 |
| Q3 2024 | 302,821 | $83.00 | $25.12 |
| Total 2024 | 1,352,821 | N/A | $112.87 |
Dividend Payments
Jackson Financial has maintained a consistent dividend payment history. The following table outlines the declared dividends for 2024:
| Quarter | Dividend per Share | Total Dividend Payment (in millions) |
|---|---|---|
| Q1 2024 | $0.70 | $54.00 |
| Q2 2024 | $0.70 | $54.00 |
| Q3 2024 | $0.70 | $54.00 |
| Total 2024 | N/A | $162.00 |
Jackson Financial Inc. (JXN) Mission Statement
Overview
The mission statement of Jackson Financial Inc. reflects its commitment to providing innovative financial solutions that empower individuals to secure their financial futures. The company focuses on delivering exceptional value through its diverse range of products and services, including retail annuities and institutional products.
Mission Statement
Jackson Financial aims to "help individuals achieve financial security through innovative insurance and investment solutions." This mission is supported by their strategic focus on customer-centricity, integrity, and operational excellence.
Core Values
- Customer Focus: Prioritizing the needs and preferences of customers to deliver tailored financial solutions.
- Integrity: Conducting business with transparency and accountability.
- Innovation: Continuously enhancing product offerings through research and development.
- Collaboration: Fostering teamwork to achieve common goals and improve service delivery.
Financial Performance Indicators
As of September 30, 2024, Jackson Financial's financial performance showcases its operational strength and market positioning:
| Financial Metric | Q3 2024 | Q3 2023 | Year-to-Date 2024 | Year-to-Date 2023 |
|---|---|---|---|---|
| Net Income (Loss) Attributable to Common Shareholders | $(480) million | $2,762 million | $568 million | $2,469 million |
| Earnings Per Share (Basic) | $(6.37) | $33.66 | $7.41 | $29.95 |
| Total Revenues | $2,121 million | $2,585 million | $3,046 million | $2,201 million |
| Total Assets Under Management (AUM) | $334,539 million | N/A | $334,539 million | $315,838 million |
| Total Shareholders' Equity | $10,698 million | $10,170 million | N/A | N/A |
Recent Developments
Jackson Financial has made significant strides in enhancing its operational capabilities and expanding its product offerings:
- In 2024, the company implemented a new reinsurance transaction with Brooke Life Reinsurance Company, significantly impacting its capital structure and risk management strategies.
- As of September 30, 2024, Jackson Financial repurchased 4,804,666 shares for $319 million as part of its ongoing share repurchase program.
Dividend Policy
Jackson Financial maintains a robust dividend policy, reflecting its commitment to returning value to shareholders. As of the third quarter of 2024:
| Type | Dividend Amount | Payment Date |
|---|---|---|
| Common Stock | $0.70 per share | December 19, 2024 |
| Preferred Stock | $0.50 per depositary share | December 30, 2024 |
Conclusion
Jackson Financial Inc. continues to focus on its mission of empowering individuals through innovative financial solutions, as evidenced by its strategic initiatives and strong financial performance metrics. The company's commitment to customer service and operational excellence remains central to its mission.
How Jackson Financial Inc. (JXN) Works
Overview of Jackson Financial Inc.
Jackson Financial Inc. operates primarily in the financial services sector, focusing on retirement solutions and annuities. The company offers a variety of products including fixed and variable annuities, life insurance, and institutional products. The company's operational strategy revolves around creating long-term value for its shareholders while managing risk associated with its insurance products.
Financial Performance
As of September 30, 2024, Jackson Financial exhibited a substantial variance in financial performance compared to the previous year. The following table summarizes key financial metrics for the three months ended September 30, 2024, compared to the same period in 2023:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Total Revenues | $2,121 million | $2,585 million |
| Net Income (Loss) | $(466) million | $2,790 million |
| Net Income Attributable to Common Shareholders | $(480) million | $2,762 million |
| Earnings Per Share (Basic) | $(6.37) | $33.66 |
| Earnings Per Share (Diluted) | $(6.37) | $33.35 |
Operational Segments
Jackson Financial operates through three primary segments: Retail Annuities, Institutional Products, and Closed Life and Annuity Blocks. The following table provides a breakdown of the pretax adjusted operating earnings by segment for the three months ended September 30, 2024:
| Segment | Q3 2024 Earnings | Q3 2023 Earnings |
|---|---|---|
| Retail Annuities | $458 million | $354 million |
| Institutional Products | $17 million | $21 million |
| Closed Life and Annuity Blocks | $7 million | $6 million |
| Corporate and Other | $(71) million | $(26) million |
Investment Income and Market Risk
Investment income plays a critical role in Jackson Financial’s profitability. The company reported net investment income of $726 million for Q3 2024, compared to $761 million in Q3 2023. The breakdown is as follows:
| Type of Income | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Investment Income (excluding funds withheld) | $457 million | $458 million |
| Net Investment Income (funds withheld) | $269 million | $303 million |
| Net Gains (Losses) on Derivatives and Investments | $(682) million | $(176) million |
Dividends and Shareholder Returns
In 2024, Jackson Financial has been active in returning capital to its shareholders. The company has repurchased shares and paid dividends as follows:
| Type of Return | Amount (in millions) |
|---|---|
| Dividends Paid on Common Shares | $54 million |
| Share Repurchases | $113 million |
Capital Structure and Liquidity
Jackson Financial maintains a robust capital structure with total liabilities of $334,755 million and total shareholders' equity of $10,698 million as of September 30, 2024. The company has focused on liquidity management, ensuring sufficient cash and equivalents to meet operational needs.
Recent Developments
In 2024, Jackson Financial entered into a significant reinsurance transaction with Brooke Life, which included a ceding commission of approximately $1.2 billion. This transaction is expected to enhance the company's ability to manage market risk associated with variable annuity contracts.
How Jackson Financial Inc. (JXN) Makes Money
Revenue Streams
Jackson Financial Inc. generates revenue primarily through three segments: Retail Annuities, Institutional Products, and Closed Life and Annuity Blocks. The company also earns income through investment activities and fees associated with its insurance products.
| Revenue Source | Q3 2024 Revenue (in millions) | Q3 2023 Revenue (in millions) | 9M 2024 Revenue (in millions) | 9M 2023 Revenue (in millions) |
|---|---|---|---|---|
| Fee Income | $2,032 | $1,950 | $6,038 | $5,751 |
| Premiums | $31 | $32 | $106 | $109 |
| Net Investment Income | $726 | $761 | $2,208 | $2,110 |
| Net Gains (Losses) on Derivatives and Investments | $(682) | $(176) | $(5,331) | $(5,821) |
| Other Income | $14 | $18 | $25 | $52 |
| Total Revenue | $2,121 | $2,585 | $3,046 | $2,201 |
Retail Annuities Segment
The Retail Annuities segment is a significant contributor to Jackson Financial’s revenue. It includes income from various annuity products that provide guaranteed returns to policyholders. For Q3 2024, the Retail Annuities segment reported the following:
| Category | Q3 2024 (in millions) | Q3 2023 (in millions) |
|---|---|---|
| Operating Revenues | $1,344 | $1,163 |
| Operating Benefits and Expenses | $886 | $809 |
| Pretax Adjusted Operating Earnings | $458 | $354 |
Institutional Products Segment
This segment primarily focuses on providing investment products and services to institutions. For Q3 2024, the earnings from Institutional Products were:
| Category | Q3 2024 (in millions) | Q3 2023 (in millions) |
|---|---|---|
| Pretax Adjusted Operating Earnings | $17 | $21 |
Closed Life and Annuity Blocks Segment
The Closed Life and Annuity Blocks segment includes products that are no longer actively marketed. The earnings for Q3 2024 were:
| Category | Q3 2024 (in millions) | Q3 2023 (in millions) |
|---|---|---|
| Pretax Adjusted Operating Earnings | $7 | $6 |
Investment Income
Jackson Financial's investment income is derived from a diversified portfolio of fixed-income securities, equities, and alternative investments. The net investment income for the company includes:
| Investment Type | Q3 2024 (in millions) | Q3 2023 (in millions) |
|---|---|---|
| Net Investment Income Excluding Funds Withheld Assets | $457 | $458 |
| Net Investment Income on Funds Withheld Assets | $269 | $303 |
Expenses and Benefits
The company incurs various expenses related to its operations, including policy benefits, interest credited to contract holder funds, and operating costs. For Q3 2024, the major expenses were:
| Expense Type | Q3 2024 (in millions) | Q3 2023 (in millions) |
|---|---|---|
| Death and Other Policy Benefits | $209 | $232 |
| Interest Credited on Other Contract Holder Funds | $275 | $284 |
| Operating Costs and Other Expenses | $742 | $626 |
| Total Benefits and Expenses | $2,700 | $(917) |
Profitability Metrics
Jackson Financial's profitability metrics for Q3 2024 reflect the company's performance amidst market fluctuations:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Pretax Income (Loss) | $(579) million | $3,502 million |
| Net Income (Loss) | $(466) million | $2,790 million |
| Earnings Per Share (Basic) | $(6.37) | $33.66 |
Shareholder Returns
Jackson Financial has been active in returning capital to shareholders through dividends and share repurchases. For the nine months ended September 30, 2024, the company reported:
| Return Type | Amount (in millions) |
|---|---|
| Dividends Paid on Common Shares | $164 |
| Share Repurchases | $319 |
As of September 30, 2024, the total shareholders' equity was reported at $10,698 million.
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Resources:
- Jackson Financial Inc. (JXN) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Jackson Financial Inc. (JXN)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Jackson Financial Inc. (JXN)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.