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November 11, 2021 at 02:42 PM
What You Need to Know
- Jackson kicked off its first quarter as an independent company with $268 million in net income.
- Primerica, American Equity and National Western Life also reported solid profits.
- American Equity said its annuity sales increased 128%.
Jackson Financial is now a separate company from Prudential PLC, and it’s now releasing its own quarterly earnings reports and holding its own quarterly conference calls with securities analysts.
Executives at the Lansing, Michigan-based annuity giant, which is the parent of Jackson National Life Insurance, say it’s using the same strategy many competitors are using: emphasizing the sale of products that hold down the company’s exposure to guarantee risk.
The company described its strategy in a slidedeck that covers results for the third quarter, which ended Sept. 30.
The company’s overall sales of retail variable annuities increased 6% from the total for the third quarter of 2020, to $4.8 billion.
But executives noted that sales figures for some types of products were much different than for others:
- Sales of investment-only variable annuities increased 71%.
- Sales of other variable annuities without lifetime benefit guarantees increased 33%.
- Sales of variable annuities with lifetime guarantees fell 8%.
The company also entered the registered index-linked annuity arena in the third quarter, with the introduction of the Jackson Market Link Pro and Jackson Market Link Pro Advisory RILA contracts.
Jackson’s Earnings
Jackson is reporting $268 million in net income for the third quarter on $1.5 billion in revenue, compared with $375 million in net income on $111 million in revenue for the third quarter of 2020.
The company’s latest results reflect the effects of changes in the value of reserves and derivatives.
Operating income, which excludes the effects of those items and some other items, fell to $487 million, from $547 million.
Other life and annuity issuers also reported earnings this week …
Primerica
The Duluth, Georgia-based life and annuity issuer is reporting $111 million in net income for the third quarter on $693 million in revenue, compared with $112 million in net income on $568 million in revenue for the year-earlier quarter.
