Jackson Financial Reports Strong Results Amid Annuity Boom

Jackson Financial is experiencing significant success in the annuity market, celebrating strong fourth-quarter and full-year 2024 results amidst renewed consumer interest in annuities. CEO Laura Prieskorn highlighted 2024 as a year of momentum for Jackson, with variable annuity sales reaching $2.8 billion, a 27% increase from the previous year. Additionally, registered index-linked annuity sales soared to $1.5 billion, up 47%.

Despite some concerns regarding the performance of Brooke Re, a reinsurer established in 2023, Jackson remains optimistic. The company reported a $419 million actuarial charge at Brooke Re due to updated assumptions about customer behavior related to withdrawal benefits on a legacy variable annuity block. Jackson's CFO, Don Cummings, assured analysts that Brooke Re is on solid ground, with capital for the full year increasing by $200 million.

The overall surge in annuity sales can be attributed to Jackson’s innovative product offerings and expanded distribution relationships, which have also led to a record $1 billion in advisory sales for 2024. The continued market trend reflects an increasing interest in annuities, which provide investment protection and guaranteed lifetime income.