Jackson Financial Q3 Profit Rises as Annuity Sales Hit Record

Jackson Financial Inc. reported sharply higher third-quarter earnings and record retail annuity sales, while a growing contribution from spread-based products supported the insurer’s effort to diversify its in-force business and earnings sources. The company also said it remained on track to meet its 2026 capital generation and shareholder return targets.

Net income attributable to Jackson Financial common shareholders was $847 million, or $12.37 per diluted share, for the third quarter of 2026. That compared with $65 million, or $0.92 per diluted share, a year earlier.

Adjusted operating earnings, a non-GAAP measure that excludes items including certain hedging results and realized investment gains and losses, rose to $517 million from $433 million. Adjusted operating earnings per diluted share increased to $7.55 from $6.16.

Excluding notable items and taxes, adjusted operating earnings were $525 million, or $7.67 per diluted share. The quarter included $19 million of pretax underperformance from limited partnership income, with operating limited partnership returns of 6% compared with the company’s assumed annualized return of 10%.

Record annuity sales support business diversification

Retail annuity sales reached $6.5 billion, the highest quarterly level since Jackson became an independent public company and 22% above the third quarter of 2025. Sales also increased from $5.9 billion in the second quarter of 2026.

Spread-based products accounted for 58% of retail annuity sales. Jackson said the mix supports diversification of its in-force business and future earnings sources. The company’s spread account value increased to $47.9 billion from $33.6 billion a year earlier.

Non-variable-annuity net flows were $3.5 billion, compared with $2.3 billion in the prior-year quarter. Advisory sales rose to $604 million from $448 million, with non-variable-annuity products representing 54% of advisory sales, up from 35% a year earlier.

Jackson attributed its broader product mix to its registered index-linked annuities, refreshed fixed-index annuities and other product enhancements. The company has also expanded its offering with a dedicated income and accumulation fixed-index annuity, a fourth-generation RILA product and an updated single-premium immediate annuity.

The changing sales mix has also altered the composition of Jackson’s account value. Products other than variable annuities with lifetime benefits represented 41% of account value at the end of the third quarter, compared with 30% at year-end 2021.

Jackson plans to begin the phased launch of its AARP annuity program in November 2026. Four products will initially be available in 10 states, combining digital access with dedicated sales and service support. The company is targeting national availability in the first half of 2027.

Capital generation and shareholder returns

Jackson generated $281 million of free capital during the quarter and $275 million of free cash flow. It returned $291 million to common shareholders through dividends and share repurchases, including the repurchase of 1.8 million common shares.

For the first nine months of 2026, free capital generation totaled $856 million, while capital returned to common shareholders reached $838 million. Jackson continues to target at least $1.2 billion of free capital generation and between $900 million and $1.1 billion of capital returns for the full year.

The company’s quarterly common dividend is $0.90 per share in 2026, an increase of 12.5% from 2025. Jackson also announced a $1 billion increase to its common share repurchase authorization on Nov. 3.

Holding-company cash and highly liquid securities totaled nearly $1.4 billion at Sept. 30, above Jackson’s current minimum liquidity buffer of $325 million. That balance includes proceeds from a $750 million senior debt issuance completed in the second quarter, which may be used for general corporate purposes, including obligations related to debt and surplus notes due in 2027.

Jackson National Life’s risk-based capital ratio was 524%, remaining above the company’s 425% minimum. Total available liquidity was $4.0 billion at Jackson Financial and $31.7 billion at Jackson National Life.

Hedging results and investment position

Pretax income attributable to Jackson Financial was $988 million, compared with pretax adjusted operating earnings of $612 million. Third-quarter net hedge results were a gain of $213 million. Excluding a $266 million market risk benefit volatility impact, net hedge results were a gain of $479 million.

Jackson said its Brooke Re captive reinsurance structure is intended to make capital generation more predictable by separating variable-annuity guarantee risk from base contract fees. Brooke Re reinsures primarily variable-annuity guarantees and payout annuities, while Jackson National Life executes hedging on its behalf.

The company reported a $61 billion U.S. GAAP investment portfolio excluding funds-withheld assets. Below-investment-grade exposure was limited to about 1%, while 7% of the portfolio was invested in highly liquid U.S. government securities. Jackson said its commercial mortgage portfolio consisted of 99% first-lien loans, with 97% rated CM1 or CM2.

Jackson’s 2026 capital targets assume a 5% total return in equity markets and interest rates following the Dec. 31, 2025 forward curve. Actual results may also be affected by market movements, hedging volatility, limited partnership returns, regulatory considerations and the capital required to support new business. The company noted that non-GAAP measures are supplementary to U.S. GAAP results and may not be comparable with similarly titled measures used by other companies.