Jackson National Group Upgrades Highlight Strength in Insurance Ratings

AM Best has announced an upgrade in the Long-Term Issuer Credit Ratings (Long-Term ICR) for Jackson National Life Insurance Company (JNL), Jackson National Life Insurance Company of New York, and Brooke Life Insurance Company, collectively known as Jackson National Group (JNG). The ratings have been elevated to “a+” (Excellent) from “a” (Excellent), while the Financial Strength Rating (FSR) remains steady at A (Excellent). The Long-Term Issue Credit Rating (Long-Term IR) on notes from JNL’s funding agreement-backed securities program also improved to “a+” (Excellent), with surplus notes advancing to “a-” (Excellent). This marks a significant enhancement in the credit standing of Jackson Financial Inc.

The upgrades reflect JNG's robust balance sheet and strong operational performance, bolstered by strategic initiatives in risk management and enterprise development. The improvements in Long-Term ICR underscore the effectiveness of JNG's business strategies, focusing on strong risk-adjusted capitalization as evidenced by Best’s Capital Adequacy Ratio (BCAR). Strategic asset-liability management and a targeted regulatory capital position exceeding 425% further strengthen the group's competitive position in the market.

JNG has experienced substantial sales growth in its variable annuity products, alongside improvements in fixed and fixed indexed annuity sales. Their market presence in registered indexed-linked annuities has also expanded. With GAAP earnings remaining robust και statutory earnings set to stabilize through positive organic growth into 2025, JNG is on track to enhance its statutory capital, aligning with strategic underwriting and efficient claims management.

Credit Rating Enhancements

Specific upgrades include the Long-Term IR for Jackson National Life Insurance Company's $250 million, 8.15% surplus notes due to mature in 2027, now rated at “a-” (Excellent) from “bbb+” (Good). Additionally, Jackson National Life Global Funding received a program rating upgrade to “a+” (Excellent), reflecting the overall strengthening of their financial operations.

Stakeholders looking for detailed insights on the ratings and any additional disclosures are encouraged to refer to AM Best’s Recent Rating Activity web page. As a preeminent credit rating agency in the insurance sector, AM Best provides critical industry insights and regulatory compliance evaluations for insurers across the globe, contributing to stronger industry standards and operational transparency.