Equibles

8-K

Jackson Financial Inc. (JXN)

8-K 2023-03-22 For: 2023-03-22
View Original
Added on April 07, 2026

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of

the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): March 22, 2023

Jackson Financial Inc.

(Exact name of registrant as specified in its charter)

Delaware 001-40274 98-0486152
(State or other jurisdiction of incorporation or organization) (Commission File Number) (I.R.S. Employer Identification No.)
1 Corporate Way, Lansing, Michigan 48951
(Address of principal executive offices) (Zip Code)

(517) 381-5500

(Registrant’s telephone number, including area code)

N/A

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class Trading Symbol(s) Name of Exchange on Which Registered
Common Stock, Par Value $0.01 Per Share JXN New York Stock Exchange
Depositary Shares, each representing a 1/1,000th interest in a share of Fixed-Rate Reset Noncumulative Perpetual Preferred Stock, Series A JXN PRA New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02    Results of Operations and Financial Condition.

Jackson Financial Inc. (the “Company,” “we,” “our,” or “us”) is furnishing, as Exhibit 99.1, a historical financial supplement for the quarters and years ended 2021 and 2022 that has been recast to reflect the adoption of U.S. GAAP Accounting Standards Update 2018-12 related to targeted improvements to the accounting for long-duration contracts (“LDTI”).

The financial information in Exhibit 99.1 is based on our implementation of LDTI and is currently unaudited. We expect to file recasted audited financial statements for the years ended December 31, 2022 and 2021, following the filing with the Securities and Exchange Commission of our Form 10-Q for the quarter ended March 31, 2023. The information in Exhibit 99.1 is being provided prior to the availability of the audited financial statements to assist investors and other users of our financial statements in evaluating the impact of LDTI on the Company’s financial position and results of operations. It is possible that the recasted audited financial statements may differ, perhaps materially, from the information included in Exhibit 99.1.

The information in this Item (including Exhibit 99.1) shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth in such a filing.

See also Item 7.01 below for additional information.

Item 7.01    Regulation FD Disclosure.

Effective January 1, 2023, we adopted the LDTI accounting guidance, which includes changes to the existing recognition, measurement, presentation, and disclosure requirements for long-duration contracts issued by an insurance entity, and applied the modified retrospective adoption method, except for market risk benefits for which we applied a full retrospective transition approach.

The LDTI accounting guidance contains four significant changes:

1.Market risk benefits: market risk benefits, is a new term for certain contracts or features that provide for potential benefits in addition to the account balance which contracts or features expose us to other than nominal market risk (for example, certain guaranteed benefits on annuity contracts, including guaranteed minimum withdrawal benefits and guaranteed minimum death benefits on variable annuities), and are measured at fair value. Changes in fair value are recorded and presented separately within the income statement, with the exception of changes in fair value due to the Company’s own credit (or non-performance) risk, which are recognized in other comprehensive income (“OCI”);

2.Deferred acquisition costs: deferred acquisition costs (“DAC”) are amortized on a constant-level basis, independent of profitability on the underlying business;

3.Liability for future policy benefits: annual review and, if necessary, update of cash flow assumptions used to measure the liability for future policy benefits for nonparticipating traditional and limited-payment insurance contracts are required. These liabilities are discounted using an upper-medium grade fixed income instrument yield which is updated quarterly, with related changes in the liability recognized in OCI; and

4.Enhanced disclosures: enhanced disclosures are required, including disaggregated roll-forwards of certain balance sheet accounts that provide information about actual and expected cash flows, as well as information about significant inputs, judgments, assumptions and methods used in measurement. The enhanced disclosures are intended to improve the ability of users of the financial statements to evaluate the timing, amount, and uncertainty of cash flows arising from long-duration contracts.

Effective January 1, 2023, with a transition date of January 1, 2021, we have adopted LDTI. Under the modified retrospective approach, we are applying the new guidance to contracts in force on the transition date on the basis of their existing carrying value, using updated future cash flow assumptions, and eliminating certain related amounts in accumulated other comprehensive income (loss) (“AOCI”). Under the full retrospective transition approach, we are applying the guidance at the transition date, using actual historical experience information as of contract inception, as if the accounting guidance had always been applied.

The adoption of LDTI has no impact on the Company’s statutory capital or ability to return cash to shareholders. However, several of our key financial metrics are impacted by the adoption of LDTI, which are summarized in the table below:

Key Metric Impact from LDTI Adoption
Total Shareholders’ Equity •As of the initial transition date of January 1, 2021, the adoption resulted in a decrease of $3.0 billion<br><br>•As of December 31, 2022, the impact is an increase of $223 million largely due to the higher level of interest rates<br><br>•The December 31, 2022 equity increase is comprised of a reduction in retained earnings that was more than offset by an increase in AOCI, primarily reflecting the effect of the cumulative change in non-performance risk to AOCI
Adjusted Book Value (ABV)1 •Our adjusted book value definition excludes AOCI attributable to JFI<br><br>•The reduction in retained earnings as of the December 31, 2022 results in a decrease to ABV of approximately $1.9 billion<br><br>•The Company’s leverage ratio increases to 21% after implementation at December 31, 2022.
Net Income •Under LDTI, our net hedge results are expected to be less sensitive to equity market movements, but more sensitive to interest rate movements<br><br>•Full year net income for 2022 and 2021 increased by $489 million and $234 million, respectively<br><br>•No changes to our hedging strategy are expected as a result of the adoption of LDTI
Adjusted Operating Earnings (AOE)1 •Modest estimated increase to go forward DAC amortization<br><br>•No reduction in AOE from attributed fee treatment given our historical presentation of variable annuity guarantee fees<br><br>•Acceleration or deceleration of DAC amortization driven by equity market movements no longer applies going forward, which should make AOE less volatile – see historical comparison chart below<br><br>•Portion of DAC amortization attributable to non-operating items prior to transition date will continue to be excluded from AOE

1 A Non-GAAP Financial Measure. See “Non-GAAP Financial Measures” and “Select U.S. GAAP to Non-GAAP Reconciliations” in Exhibit 99.1

jxn-20230322_g1.jpg

The information in this Item (including Exhibit 99.1) shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth in such a filing.

Forward-Looking Statements

The information in this document contains forward-looking statements about future events and circumstances and their effects upon revenues, expenses and business opportunities. Generally speaking, any statement in this document not based upon historical fact is a forward-looking statement. Forward-looking statements can also be identified by the use of forward-looking or conditional words, such as “could,” “should,” “can,” “continue,” “estimate,” “forecast,” “intend,” “look,” “may,” “will,” “expect,” “believe,” “anticipate,” “plan,” “remain,” “confident” and “commit” or similar expressions. In particular, statements regarding plans, strategies, prospects, targets and expectations regarding the business and industry are forward-looking statements. They reflect expectations, are not guarantees of performance and speak only as of the dates the statements are made. We caution investors that these forward-looking statements are subject to known and unknown risks and uncertainties that may cause actual results to differ materially from those projected, expressed, or implied. Factors that could cause actual results to differ materially from those in the forward-looking statements include those reflected in the Company’s reports filed with the U.S. Securities and Exchange Commission. Except as required by law, Jackson Financial Inc. does not undertake to update such forward-looking statements. You should not rely unduly on forward-looking statements.

Certain financial data included in this document consists of non-GAAP ("Generally Accepted Accounting Principles") financial measures. These non- GAAP financial measures may not be comparable to similarly titled measures presented by other entities, nor should they be construed as an alternative to other financial measures determined in accordance with U.S. GAAP. Although the Company believes these non-GAAP financial measures provide useful information to investors in measuring the financial performance and condition of its business, investors are cautioned not to place undue reliance on any non-GAAP financial measures and ratios included in this document. A reconciliation of the non-GAAP financial measures to the most directly comparable U.S. GAAP financial measure can be found in the “Non-GAAP Financial Measures” in Exhibit 99.1 to this report.

Item 9.01    Financial Statements and Exhibits.

(d) Exhibits.

Exhibit No. Description
99.1 Quarterly Financial Supplement Recast for Long-Duration Targeted Improvement Accounting Guidance for the quarters and years ended 2021 and 2022 (Unaudited).
104 Cover Page Interactive Data File (the coverage page XBRL tags are embedded within the Inline XBRL Document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

JACKSON FINANCIAL INC.
By: /s/ Marcia Wadsten
Marcia Wadsten
Executive Vice President and<br><br>Chief Financial Officer
(Principal Financial Officer)
Date: March 22, 2023

Document

Exhibit 99.1

image1a.jpg

Quarterly Financial Supplement

Recast for Long-Duration Targeted Improvements (“LDTI”) Accounting Guidance

1Q 2021 - 4Q 2022 (Unaudited)

This supplement recasts previously reported financial information for the accounting guidance of Targeted Improvements to the Accounting for Long Duration Contracts (ASU 2018-12) adopted as of January 1, 2023, with a transition date of January 1, 2021. This supplement should be read in conjunction with Jackson Financial Inc.'s Annual Reports on Form 10-K for the years ended December 31, 2021 and 2022, which have been filed with the U.S. Securities and Exchange Commission.

Jackson Financial Inc.
Table of Contents
Quarterly Financial Supplement - LDTI Recast
Consolidated Financials and Key Metrics
--- ---
Forward-Looking Statements Disclosure 3
Overview 4
Key Metrics 5
Consolidated Income Statements 6
Consolidated Balance Sheets 7
Consolidated Capital Structure 8
Pretax Adjusted Operating Earnings 9
Earnings and Select Metrics from Business Segments and Corporate and Other
Retail Annuities
Statements of Pretax Adjusted Operating Earnings, Sales, and Key Metrics 10
Select Operating Metrics 11 - 15
Institutional Products
Statements of Pretax Adjusted Operating Earnings, Sales, and Key Metrics 16
Closed Life and Annuity Blocks
Statements of Pretax Adjusted Operating Earnings and Key Metrics 17
Corporate and Other
Statements of Pretax Adjusted Operating Earnings 18
Investments
Consolidated Composition of Invested Assets 19
Consolidated Composition of Debt Securities Excluding Funds Withheld Assets 20
Consolidated Net Investment Income 21
Other Information
Market Risk Benefits 22
Deferred Acquisition Costs 23
Key Statutory Metrics 24
Non-GAAP Financial Measures 25 - 26
Select U.S. GAAP to Non-GAAP Reconciliations 27 - 28
Glossary of Select Financial and Product Terms 29 - 30

Note: Unless noted, financial information is rounded to millions. As such, some financial information may not sum to totals.

Page 2

Jackson Financial Inc.
Quarterly Financial Supplement - LDTI Recast
Forward-Looking Statements
---
The information in this document contains forward-looking statements about future events and circumstances and their effects upon revenues, expenses and business opportunities. Generally speaking, any statement in this document not based upon historical fact is a forward-looking statement. Forward-looking statements can also be identified by the use of forward-looking or conditional words, such as “could,” “should,” “can,” “continue,” “estimate,” “forecast,” “intend,” “look,” “may,” “will,” “expect,” “believe,” “anticipate,” “plan,” “remain,” “confident” and “commit” or similar expressions. In particular, statements regarding plans, strategies, prospects, targets and expectations regarding the business and industry are forward-looking statements. They reflect expectations, are not guarantees of performance and speak only as of the dates the statements are made. We caution investors that these forward-looking statements are subject to known and unknown risks and uncertainties that may cause actual results to differ materially from those projected, expressed, or implied. Factors that could cause actual results to differ materially from those in the forward-looking statements include those reflected in the Company’s reports filed with the U.S. Securities and Exchange Commission. Except as required by law, Jackson Financial Inc. does not undertake to update such forward-looking statements. You should not rely unduly on forward-looking statements.
---
Certain financial data included in this document consists of non-GAAP ("Generally Accepted Accounting Principles") financial measures. These non-GAAP financial measures may not be comparable to similarly titled measures presented by other entities, nor should they be construed as an alternative to other financial measures determined in accordance with U.S. GAAP. Although the Company believes these non-GAAP financial measures provide useful information to investors in measuring the financial performance and condition of its business, investors are cautioned not to place undue reliance on any non-GAAP financial measures and ratios included in this document. A reconciliation of the non-GAAP financial measures to the most directly comparable U.S. GAAP financial measure can be found in the “Non-GAAP Financial Measures” section of this document.
Certain financial data included in this document consists of statutory accounting principles (“statutory”) financial measures, including “total adjusted capital” and “statutory admitted assets.” These statutory financial measures are included in or derived from the Jackson National Life Insurance Company annual and/or quarterly statements filed with the Michigan Department of Insurance and Financial Services and available in the investor relations section of the Company’s website at https://investors.jackson.com/financials/statutory-filings.

Page 3

Jackson Financial Inc.
Quarterly Financial Supplement - LDTI Recast
Overview
---
The financial data herein reflects, for all periods presented, the adoption of the accounting guidance of Targeted Improvements to the Accounting for Long Duration Contracts (ASU 2018-12) ("LDTI"). This includes changes to the existing recognition, measurement, presentation and disclosure requirements for long-duration contracts issued by an insurance entity. The amended guidance results in significant changes related to (1) the discount rate that impacts our liability for future policy benefits, (2) market risk benefits, including the impact of non-performance adjustments, (3) deferred acquisition costs which are amortized on a constant-level basis, independent of profitability on the underlying business, and (4) the removal of balances recorded in accumulated other comprehensive income ("AOCI") related to changes in unrealized appreciation (depreciation) on investments. The Company adopted this guidance effective January 1, 2023, with a transition date of January 1, 2021, using the modified retrospective transition method relating to liabilities for traditional and limited payment contracts and deferred policy acquisition costs associated therewith, and on a retrospective basis, in relation to market risk benefits ("MRBs").
---
All financial information in this document is based on the Company's implementation of LDTI and is currently unaudited. We expect to file recasted audited financial statements for the years ended December 31, 2022 and 2021, following the issuance of our Quarterly Report on Form 10-Q for the quarter ended March 31, 2023. The information in this document is being provided on an unaudited basis to assist investors and others in evaluating the impact of LDTI on the Company's financial position and results of operations. It is possible that the final audited financial statements may differ, perhaps materially, from the information included in this document.

Page 4

Jackson Financial Inc.
Quarterly Financial Supplement - LDTI Recast
(unaudited, in millions, except per share and shares outstanding data) Key Metrics
--- For the Three Months Ended For the Twelve Months Ended
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
3/31/21 6/30/21 9/30/21 12/31/21 3/31/22 6/30/22 9/30/22 12/31/22 12/31/21 12/31/22
Net Income (Loss) $ 4,822 $ (1,022) $ (56) $ (65) $ 2,225 $ 3,294 $ 1,868 $ (1,158) $ 3,679 $ 6,229
Net income (loss) attributable to noncontrolling interests 68 56 62 76 31 31 (11) (8) 262 43
Net Income (Loss) Attributable to Jackson Financial Inc. $ 4,754 $ (1,078) $ (118) $ (141) $ 2,194 $ 3,263 $ 1,879 $ (1,150) $ 3,417 $ 6,186
Total Shareholders' Equity $ 8,746 $ 8,223 $ 7,701 $ 7,641 $ 8,194 $ 9,706 $ 10,219 $ 8,646 $ 7,641 $ 8,646
Average Shareholders' Equity $ 7,592 $ 8,485 $ 7,962 $ 7,671 $ 7,918 $ 8,950 $ 9,963 $ 9,433 $ 7,750 $ 8,881
Total ROE 250.5 % (50.8) % (5.9) % (7.4) % 110.8 % 145.8 % 75.4 % (48.8) % 44.1 % 69.7 %
Adjusted Operating Earnings1 $ 535 $ 529 $ 524 $ 591 $ 377 $ 407 $ 376 $ 294 $ 2,179 $ 1,454
Effective tax rate on adjusted operating earnings1 9.9 % 15.4 % 14.8 % 11.3 % 15.3 % 12.3 % 9.2 % 8.1 % 12.9 % 11.5 %
Adjusted Book Value1 $ 8,033 $ 7,314 $ 7,052 $ 6,568 $ 7,627 $ 9,768 $ 10,935 $ 9,918 $ 6,568 $ 9,918
Average Adjusted Book Value1 $ 6,125 $ 7,674 $ 7,183 $ 6,810 $ 7,098 $ 8,698 $ 10,352 $ 10,427 $ 6,637 $ 8,963
Adjusted Operating ROE1 34.9 % 27.6 % 29.2 % 34.7 % 21.2 % 18.7 % 14.5 % 11.3 % 32.8 % 16.2 %
Per Share Data (Common Shareholders)2
Net income (loss) (basic) $ 50.33 $ (11.41) $ (1.25) $ (1.52) $ 25.41 $ 37.96 $ 22.08 $ (13.74) $ 36.35 $ 72.34
Net income (loss) (diluted)3 $ 50.33 $ (11.41) $ (1.25) $ (1.52) $ 24.39 $ 36.59 $ 21.38 $ (13.74) $ 36.17 $ 69.75
Adjusted operating earnings per share (diluted)1 $ 5.66 $ 5.60 $ 5.55 $ 6.26 $ 4.19 $ 4.56 $ 4.28 $ 3.39 $ 23.07 $ 16.39
Book value per common share (diluted) $ 92.59 $ 87.05 $ 81.52 $ 84.38 $ 92.01 $ 110.90 $ 117.95 $ 100.56 $ 84.38 $ 100.56
Adjusted book value per common share (diluted)1 $ 85.04 $ 77.43 $ 74.65 $ 72.53 $ 85.64 $ 111.61 $ 126.21 $ 115.36 $ 72.53 $ 115.36
Shares Outstanding2
Weighted average number of common shares (basic) 94,464,343 94,464,343 94,464,343 92,600,373 86,352,586 85,968,564 85,098,192 83,695,001 93,994,520 85,513,787
Weighted average number of common shares (diluted)3 94,464,343 94,464,343 94,464,343 92,600,373 89,959,862 89,168,775 87,895,919 83,695,001 94,465,511 88,690,700
End of period common shares (basic) 94,464,343 94,464,343 94,464,343 88,685,694 85,263,608 84,864,727 83,666,942 82,690,098 88,685,694 82,690,098
End of period common shares (diluted) 94,464,343 94,464,343 94,464,343 90,555,862 89,055,609 87,520,892 86,640,003 85,976,078 90,555,862 85,976,078
Balances as of
Total Company AUM 3/31/21 6/30/21 9/30/21 12/31/21 3/31/22 6/30/22 9/30/22 12/31/22 12/31/21 12/31/22
Jackson invested assets $ 46,194 $ 44,330 $ 47,401 $ 47,224 $ 44,959 $ 46,267 $ 45,349 $ 44,486 $ 47,224 $ 44,486
Third party invested assets (including CLOs)4 40,738 32,670 31,715 31,980 30,639 26,751 24,719 26,993 31,980 26,993
Total PPM AUM 86,932 77,000 79,116 79,204 75,598 73,018 70,068 71,479 79,204 71,479
Total JNAM AUM 264,004 271,914 268,452 280,250 260,822 221,634 208,046 219,070 280,250 219,070
Total AUM $ 350,936 $ 348,914 $ 347,568 $ 359,454 $ 336,420 $ 294,652 $ 278,114 $ 290,549 $ 359,454 $ 290,549
1 See explanation of Non-GAAP Financial Measures at the end of this Financial Supplement.
2 The calculation of basic and diluted earnings per share ("EPS") and weighted average shares of common stock outstanding are based on 104,960.3836276-for-1 stock split effected on September 9, 2021. All share and earnings per share information presented herein have been retroactively adjusted to reflect the stock split.
3 If we reported a net loss attributable to Jackson Financial Inc., all common stock equivalents are anti-dilutive and are therefore excluded from the calculation of diluted shares and diluted per share amounts. The shares excluded from the diluted EPS calculation were 3,112,052 shares and 1,868,605 shares for the three months ended December 31, 2022 and 2021, respectively. There were no dilutive shares for the three months ended September 30, 2021 and June 30, 2021.
4Assets under management include Prudential affiliates in Asia.

Page 5

Jackson Financial Inc.
Quarterly Financial Supplement - LDTI Recast
(unaudited, in millions) Consolidated Income Statements
---
For the Three Months Ended For the Twelve Months Ended
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
3/31/21 6/30/21 9/30/21 12/31/21 3/31/22 6/30/22 9/30/22 12/31/22 12/31/21 12/31/22
Revenues
Fee income $ 1,907 $ 1,993 $ 2,063 $ 2,096 $ 2,012 $ 1,934 $ 1,908 $ 1,868 $ 8,059 $ 7,722
Premiums 40 38 37 33 37 32 36 27 148 132
Net investment income:
Net investment income excluding funds withheld assets 639 507 538 552 430 328 327 422 2,236 1,507
Net investment income on funds withheld assets 291 294 299 304 260 364 313 317 1,188 1,254
Total net investment income 930 801 837 856 690 692 640 739 3,424 2,761
Net gains (losses) on derivatives and investments:
Net gains (losses) on derivatives and investments (2,840) (388) (420) (1,696) (1,566) 2,938 (196) (4,199) (5,344) (3,023)
Net gains (losses) on funds withheld reinsurance treaties 898 (768) (115) (36) 1,028 1,077 555 (474) (21) 2,186
Total net gains (losses) on derivatives and investments (1,942) (1,156) (535) (1,732) (538) 4,015 359 (4,673) (5,365) (837)
Other income 23 30 17 24 20 21 19 25 94 85
Total revenues 958 1,706 2,419 1,277 2,221 6,694 2,962 (2,014) 6,360 9,863
Benefits and Expenses
Death, other policy benefits and change in policy reserves, net of deferrals 256 217 284 168 300 274 237 251 925 1,062
(Gain) loss from updating future policy benefits cash flow assumptions, net 48 6 (15) 2 15 14 (37) (26) 41 (34)
Market risk benefits (gains) losses, net (6,522) 1,512 1,066 (22) (1,907) 1,184 (913) (1,900) (3,966) (3,536)
Interest credited on other contract holder funds, net of deferrals 212 210 208 202 197 209 224 236 832 866
Interest expense 6 7 6 18 20 24 29 40 37 113
Operating costs and other expenses, net of deferrals 690 701 697 751 666 543 592 631 2,839 2,432
Amortization of deferred acquisition costs 331 328 328 320 317 307 305 297 1,307 1,226
Total benefits and expenses (4,979) 2,981 2,574 1,439 (392) 2,555 437 (471) 2,015 2,129
Pretax income (loss) 5,937 (1,275) (155) (162) 2,613 4,139 2,525 (1,543) 4,345 7,734
Income tax expense (benefit) 1,115 (253) (99) (97) 388 845 657 (385) 666 1,505
Net income (loss) 4,822 (1,022) (56) (65) 2,225 3,294 1,868 (1,158) 3,679 6,229
Less: net income (loss) attributable to noncontrolling interests 68 56 62 76 31 31 (11) (8) 262 43
Net income (loss) attributable to Jackson Financial Inc. $ 4,754 $ (1,078) $ (118) $ (141) $ 2,194 $ 3,263 $ 1,879 $ (1,150) $ 3,417 $ 6,186

Page 6

Jackson Financial Inc.
Quarterly Financial Supplement - LDTI Recast
(unaudited, in millions) Consolidated Balance Sheets
--- Balances as of
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
3/31/21 6/30/21 9/30/21 12/31/21 3/31/22 6/30/22 9/30/22 12/31/22
Assets
Investments:
Debt securities, available-for-sale, net of allowance for credit losses $ 54,616 $ 52,473 $ 52,123 $ 51,547 $ 46,770 $ 43,478 $ 41,681 $ 42,489
Debt securities, at fair value under fair value option 1,318 1,433 1,517 1,711 1,786 2,005 2,124 2,173
Debt securities, trading, at fair value 110 115 118 117 115 103 102 100
Equity securities, at fair value 238 239 290 279 261 260 234 393
Mortgage loans, net of allowance for credit losses 11,272 11,649 11,731 11,482 11,430 11,574 11,223 10,967
Mortgage loans, at fair value under fair value option — — — — 190 357 508 582
Policy loans 4,546 4,581 4,512 4,475 4,463 4,459 4,446 4,377
Freestanding derivative instruments 1,031 1,483 1,142 1,417 926 1,243 1,950 1,270
Other invested assets 2,750 2,763 2,770 3,199 3,404 3,648 3,622 3,595
Total investments 75,881 74,736 74,203 74,227 69,345 67,127 65,890 65,946
Cash and cash equivalents 1,573 1,536 2,482 2,623 2,674 5,258 5,331 4,298
Accrued investment income 527 519 511 503 484 504 509 514
Deferred acquisition costs 13,911 13,783 13,650 13,525 13,387 13,249 13,090 12,923
Reinsurance recoverable, net of allowance for credit losses 34,467 34,115 33,510 32,834 31,930 31,028 30,059 29,046
Reinsurance recoverable on market risk benefits, at fair value 359 381 393 383 326 306 261 221
Market risk benefit assets, at fair value 2,350 1,748 1,389 1,664 2,433 2,329 3,032 4,865
Deferred income taxes, net 1,389 1,492 1,712 1,716 1,711 900 386 320
Other assets 1,258 1,187 1,382 933 1,235 1,447 1,845 944
Separate account assets 226,882 239,806 237,096 248,949 231,198 196,184 185,042 195,906
Total assets $ 358,597 $ 369,303 $ 366,328 $ 377,357 $ 354,723 $ 318,332 $ 305,445 $ 314,983
Liabilities and Equity
Liabilities
Reserves for future policy benefits and claims payable $ 15,802 $ 15,864 $ 15,500 $ 15,190 $ 14,095 $ 13,064 $ 12,227 $ 12,318
Other contract holder funds 62,481 59,915 59,498 58,721 58,875 58,604 58,169 58,190
Market risk benefit liabilities, at fair value 6,292 7,512 8,393 8,033 5,902 5,945 5,138 5,662
Funds withheld payable under reinsurance treaties 30,254 30,322 29,771 29,007 27,199 25,506 23,900 22,957
Long-term debt 318 318 2,670 2,649 2,640 2,634 2,634 2,635
Repurchase agreements and securities lending payable 2,058 2,281 327 1,589 599 32 27 1,048
Collateral payable for derivative instruments 517 762 588 913 525 621 1,038 689
Freestanding derivative instruments 307 55 40 41 405 1,217 2,225 2,065
Notes issued by consolidated variable interest entities, at fair value under fair value option 995 1,014 1,006 1,404 1,401 1,757 1,745 1,732
Other liabilities 3,360 2,632 3,140 2,540 2,975 2,315 2,352 2,403
Separate account liabilities 226,882 239,806 237,096 248,949 231,198 196,184 185,042 195,906
Total liabilities 349,266 360,481 358,029 369,036 345,814 307,879 294,497 305,605
Equity
Common stock 1 1 1 1 1 1 1 1
Additional paid-in capital 5,927 5,927 5,928 6,051 6,081 6,020 6,036 6,063
Treasury stock, at cost — — — (211) (351) (371) (410) (443)
Shares held in trust (4) (4) — — — — — —
Equity compensation reserve 10 9 10 — — — — —
Accumulated other comprehensive income (loss), net of tax expense (benefit) 986 1,541 1,130 1,360 (119) (1,739) (3,032) (3,378)
Retained earnings (deficit) 1,826 749 632 440 2,582 5,795 7,624 6,403
Total shareholders' equity 8,746 8,223 7,701 7,641 8,194 9,706 10,219 8,646
Noncontrolling interest 585 599 598 680 715 747 729 732
Total equity 9,331 8,822 8,299 8,321 8,909 10,453 10,948 9,378
Total liabilities and equity $ 358,597 $ 369,303 $ 366,328 $ 377,357 $ 354,723 $ 318,332 $ 305,445 $ 314,983

Page 7

Jackson Financial Inc.
Quarterly Financial Supplement - LDTI Recast
(unaudited, in millions, except per share and shares outstanding data) Consolidated Capital Structure
--- Balances as of For the Twelve Months Ended
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
3/31/21 6/30/21 9/30/21 12/31/21 3/31/22 6/30/22 9/30/22 12/31/22 12/31/21 12/31/22
Debt
Senior notes $ — $ — $ — $ 1,581 $ 1,577 $ 2,321 $ 2,322 $ 2,323 $ 1,581 $ 2,323
Surplus notes 250 250 250 250 250 250 250 250 250 250
Term loans — — 2,352 751 750 — — — 751 —
FHLBI bank loans 68 68 68 67 63 63 62 62 67 62
Total debt [a] $ 318 $ 318 $ 2,670 $ 2,649 $ 2,640 $ 2,634 $ 2,634 $ 2,635 $ 2,649 $ 2,635
Equity
Common stock $ 1 $ 1 $ 1 $ 1 $ 1 $ 1 $ 1 $ 1 $ 1 $ 1
Additional paid-in capital 5,927 5,927 5,928 6,051 6,081 6,020 6,036 6,063 6,051 6,063
Treasury stock, at cost — — — (211) (351) (371) (410) (443) (211) (443)
Shares held in trust (4) (4) — — — — — — — —
Equity compensation reserve 10 9 10 — — — — — — —
Accumulated other comprehensive income (loss), net of tax expense (benefit) 986 1,541 1,130 1,360 (119) (1,739) (3,032) (3,378) 1,360 (3,378)
Retained earnings 1,826 749 632 440 2,582 5,795 7,624 6,403 440 6,403
Total shareholders' equity 8,746 8,223 7,701 7,641 8,194 9,706 10,219 8,646 7,641 8,646
Total shareholders' equity, excl. AOCI 7,760 6,682 6,571 6,281 8,313 11,445 13,251 12,024 6,281 12,024
Non-controlling interest 585 599 598 680 715 747 729 732 680 732
Total equity $ 9,331 $ 8,822 $ 8,299 $ 8,321 $ 8,909 $ 10,453 $ 10,948 $ 9,378 $ 8,321 $ 9,378
Adjusted Book Value1 [b] $ 8,033 $ 7,314 $ 7,052 $ 6,568 $ 7,627 $ 9,768 $ 10,935 $ 9,918 $ 6,568 $ 9,918
Total Adjusted Capitalization1 ([a]+[b]) $ 8,351 $ 7,632 $ 9,722 $ 9,217 $ 10,267 $ 12,402 $ 13,569 $ 12,553 $ 9,217 $ 12,553
Total Financial Leverage Ratio1 3.8 % 4.2 % 27.5 % 28.7 % 25.7 % 21.2 % 19.4 % 21.0 % 28.7 % 21.0 %
Capital Returned to Common Stock Shareholders
Dividends per common share $ — $ — $ — $ 0.50 $ 0.55 $ 0.55 $ 0.55 $ 0.55 $ 0.50 $ 2.20
Total dividends on common stock $ — $ — $ — $ 50 $ 52 $ 50 $ 49 $ 48 $ 50 $ 199
Total amount of common shares repurchased $ — $ — $ — $ 211 $ 140 $ 66 $ 39 $ 38 $ 211 $ 283
Number of common shares repurchased — — — 5,778,649 3,433,610 1,870,854 1,200,000 1,142,105 5,778,649 7,646,569
1 See explanation of Non-GAAP Financial Measures at the end of this Financial Supplement.

Page 8

Jackson Financial Inc.
Quarterly Financial Supplement - LDTI Recast
(unaudited, in millions) Pretax Adjusted Operating Earnings1
---
For the Three Months Ended For the Twelve Months Ended
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
3/31/21 6/30/21 9/30/21 12/31/21 3/31/22 6/30/22 9/30/22 12/31/22 12/31/21 12/31/22
Operating Revenue
Fee income $ 1,232 $ 1,289 $ 1,332 $ 1,340 $ 1,245 $ 1,167 $ 1,133 $ 1,089 $ 5,193 $ 4,634
Premiums 44 40 41 35 40 35 39 30 160 144
Net investment income 540 451 471 495 401 361 340 384 1,957 1,486
Income (loss) on operating derivatives 38 41 38 36 35 24 3 (22) 153 40
Other income 23 30 17 24 20 21 19 25 94 85
Total operating revenue 1,877 1,851 1,899 1,930 1,741 1,608 1,534 1,506 7,557 6,389
Operating Benefits and Expenses
Death, other policy benefits and change in policy reserves, net of deferrals 210 186 226 136 257 210 170 158 758 795
Interest credited on other contract holder funds, net of deferrals and amortization 213 209 209 201 197 209 224 236 832 866
(Gain) loss from updating future policy benefits cash flow assumptions, net 48 7 14 3 15 15 (37) (21) 72 (28)
Interest expense 6 7 6 18 20 24 29 40 37 113
Operating costs and other expenses, net of deferrals 665 674 685 763 665 542 592 633 2,787 2,432
Amortization of deferred acquisition costs 141 142 144 143 142 144 142 140 570 568
Total operating benefits and expenses 1,283 1,225 1,284 1,264 1,296 1,144 1,120 1,186 5,056 4,746
Pretax adjusted operating earnings1 $ 594 $ 626 $ 615 $ 666 $ 445 $ 464 $ 414 $ 320 $ 2,501 $ 1,643
For the Three Months Ended For the Twelve Months Ended
3/31/21 6/30/21 9/30/21 12/31/21 3/31/22 6/30/22 9/30/22 12/31/22 12/31/21 12/31/22
Operating costs and other expenses
Asset-based commission expenses $ 267 $ 281 $ 286 $ 292 $ 275 $ 250 $ 242 $ 243 $ 1,126 $ 1,010
Other commission expenses 266 264 263 249 240 229 195 182 1,042 846
Sub-advisor expenses 91 97 101 100 90 82 81 76 389 329
General and administrative expenses 241 235 227 323 240 152 220 263 1,026 875
Deferral of acquisition costs (200) (203) (192) (201) (180) (171) (146) (131) (796) (628)
Total operating costs and other expenses $ 665 $ 674 $ 685 $ 763 $ 665 $ 542 $ 592 $ 633 $ 2,787 $ 2,432
For the Three Months Ended For the Twelve Months Ended
3/31/21 6/30/21 9/30/21 12/31/21 3/31/22 6/30/22 9/30/22 12/31/22 12/31/21 12/31/22
Pretax Adjusted Operating Earnings by Segment1
Retail annuities $ 541 $ 519 $ 547 $ 577 $ 425 $ 425 $ 330 $ 327 $ 2,184 $ 1,507
Institutional products 10 6 21 27 23 19 20 17 64 79
Closed life and annuity blocks 60 78 80 37 (9) 12 76 38 255 117
Corporate and other (17) 23 (33) 25 6 8 (12) (62) (2) (60)
Total pretax adjusted operating earnings $ 594 $ 626 $ 615 $ 666 $ 445 $ 464 $ 414 $ 320 $ 2,501 $ 1,643
1See explanation of Non-GAAP Financial Measures at the end of this Financial Supplement.

Page 9

Jackson Financial Inc.
Quarterly Financial Supplement - LDTI Recast
(unaudited, in millions) Retail Annuities
---
Pretax Adjusted Operating Earnings, Sales, and Key Metrics
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
For the Twelve Months Ended
6/30/21 9/30/21 12/31/21 3/31/22 6/30/22 9/30/22 12/31/22 12/31/21 12/31/22
Operating Revenue
Fee income 1,089 $ 1,150 $ 1,194 $ 1,203 $ 1,108 $ 1,034 $ 1,002 $ 964 $ 4,636 $ 4,108
Premiums 7 2 — 3 — 3 4 15 10
Net investment income 150 180 151 114 113 72 104 692 403
Income (loss) on operating derivatives 15 13 10 11 7 2 (3) 52 17
Other income 11 12 12 11 11 11 9 47 42
Total operating revenue 1,333 1,401 1,376 1,247 1,165 1,090 1,078 5,442 4,580
Operating Benefits and Expenses
Death, other policy benefits and change in policy reserves, net of deferrals1 26 38 (80) 32 16 2 11 6 61
Interest credited on other contract holder funds, net of deferrals 55 56 57 57 61 72 63 225 253
(Gain) loss from updating future policy benefits cash flow assumptions, net (2) (2) 2 (3) 1 (1) (1) (8) (4)
Interest expense 6 6 5 5 6 8 13 22 32
Operating costs and other expenses, net of deferrals 590 615 676 592 515 540 527 2,456 2,174
Amortization of deferred acquisition costs 139 141 139 139 141 139 138 557 557
Total operating benefits and expenses 814 854 799 822 740 760 751 3,258 3,073
Pretax adjusted operating earnings2 541 $ 519 $ 547 $ 577 $ 425 $ 425 $ 330 $ 327 $ 2,184 $ 1,507
Sales
By Product
VA with lifetime benefits guarantees 3,263 $ 3,163 $ 3,148 $ 3,148 $ 3,219 $ 2,569 $ 2,092 $ 1,854 $ 12,722 $ 9,734
VA without lifetime benefits guarantees (incl. investment-only products) 1,658 1,590 1,691 1,356 1,064 794 690 6,351 3,904
Registered Index-Linked Annuities (RILA) — — 108 199 490 562 560 108 1,811
FA/FIA3 38 31 29 23 19 112 134 148 288
Total 4,724 $ 4,859 $ 4,769 $ 4,976 $ 4,797 $ 4,142 $ 3,560 $ 3,238 $ 19,329 $ 15,737
Variable Annuity By Rider Type
None (investment-only) 614 $ 723 $ 683 $ 723 $ 603 $ 465 $ 343 $ 331 $ 2,743 $ 1,742
GMDB only 857 829 882 667 533 397 303 3,285 1,900
GMWB - without lifetime benefits guarantees 78 78 86 86 66 54 56 323 262
GMWB - with lifetime benefits guarantees 3,163 3,148 3,148 3,219 2,569 2,092 1,854 12,722 9,734
Total 4,674 $ 4,821 $ 4,738 $ 4,839 $ 4,575 $ 3,633 $ 2,886 $ 2,544 $ 19,073 $ 13,638
Total Sales % By Channel
Independent broker-dealers % 69 % 69 % 69 % 63 % 68 % 68 % 68 % 70 % 67 %
Banks and other financial institutions % 14 % 14 % 13 % 12 % 13 % 12 % 11 % 13 % 12 %
Wirehouses and regional broker-dealers % 14 % 14 % 15 % 11 % 13 % 15 % 15 % 14 % 13 %
IPA channel4 % 3 % 3 % 3 % 14 % 6 % 5 % 6 % 3 % 8 %
Total % 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 %
Key Metrics
Total variable annuity fee margin5 % 3.1 % 3.1 % 3.1 % 3.0 % 3.2 % 3.5 % 3.5 % 3.1 % 3.3 %
Variable annuity gross separate account return6 % 6.5 % (0.2) % 5.9 % (6.2) % (14.0) % (4.5) % 7.5 % 17.6 % (17.3) %
Operating income margin7 % 38.9 % 39.0 % 41.9 % 34.1 % 36.5 % 30.3 % 30.3 % 40.1 % 32.9 %
1Includes recovery of claims on previously reinsured policies for fixed annuities and fixed-indexed annuities of 80 million in the three months ended December 31, 2021.
2See explanation of Non-GAAP Financial Measures at the end of this Financial Supplement.
3Net of premiums ceded to Athene.
4The IPA Channel includes the distribution of Jackson products through non-traditional distribution intermediaries such as Independent Registered Investment Advisors, Platforms (e.g. AllianceBernstein Lifetime Income Strategy/defined contribution plans), and insurance professionals and agents.
5Total annualized VA fee income (including guarantee fees) as a percentage of average VA account value.
6Separate account returns are calculated from the change in net asset value (NAVs) and are gross of all fees.
7Operating income as a percentage of operating revenue.

All values are in US Dollars.

Page 10

Jackson Financial Inc.
Quarterly Financial Supplement - LDTI Recast
(unaudited, in millions) Retail Annuities
--- Select Operating Metrics - (1/4)
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
For the Three Months Ended For the Twelve Months Ended
3/31/21 6/30/21 9/30/21 12/31/21 3/31/22 6/30/22 9/30/22 12/31/22 12/31/21 12/31/22
Account Value
Variable Annuity - General Account
Balance as of beginning of periods, net of reinsurance $ 10,094 $ 10,104 $ 9,615 $ 9,776 $ 9,456 $ 9,793 $ 10,469 $ 10,434 $ 10,094 $ 9,456
Premiums and deposits 396 359 358 377 359 375 315 301 1,490 1,350
Surrenders, withdrawals and benefits (533) (472) (414) (397) (369) (380) (362) (381) (1,816) (1,492)
Net flows (137) (113) (56) (20) (10) (5) (47) (80) (326) (142)
Net transfer to variable funds 133 (393) 197 (321) 326 666 (8) (114) (384) 870
Interest credited 42 41 41 41 40 41 44 43 165 168
Policy charges and other (28) (24) (21) (20) (19) (26) (24) (24) (93) (93)
Balance as of end of periods, net of reinsurance $ 10,104 $ 9,615 $ 9,776 $ 9,456 $ 9,793 $ 10,469 $ 10,434 $ 10,259 $ 9,456 $ 10,259
Variable Annuity - Separate Account
Balance as of beginning of periods, net of reinsurance $ 218,618 $ 226,426 $ 239,326 $ 236,630 $ 248,467 $ 230,762 $ 195,830 $ 184,705 $ 218,618 $ 248,467
Premiums and deposits 4,279 4,463 4,381 4,464 4,216 3,258 2,571 2,243 17,587 12,288
Surrenders, withdrawals and benefits (4,383) (4,674) (4,454) (4,761) (4,204) (3,553) (3,190) (3,606) (18,272) (14,553)
Net flows (104) (211) (73) (297) 12 (295) (619) (1,363) (685) (2,265)
Net transfer to fixed option (133) 393 (197) 321 (326) (666) 8 114 384 (870)
Investment performance 8,626 13,334 (1,794) 12,455 (16,727) (33,310) (9,853) 12,741 32,621 (47,149)
Policy charges and other (581) (616) (632) (642) (664) (661) (661) (647) (2,471) (2,633)
Balance as of end of periods, net of reinsurance $ 226,426 $ 239,326 $ 236,630 $ 248,467 $ 230,762 $ 195,830 $ 184,705 $ 195,550 $ 248,467 $ 195,550
Variable Annuity - Total
Balance as of beginning of periods, net of reinsurance $ 228,712 $ 236,530 $ 248,941 $ 246,406 $ 257,923 $ 240,555 $ 206,299 $ 195,139 $ 228,712 $ 257,923
Premiums and deposits 4,675 4,823 4,738 4,841 4,575 3,633 2,886 2,544 19,077 13,638
Surrenders, withdrawals and benefits (4,915) (5,148) (4,867) (5,158) (4,573) (3,933) (3,552) (3,987) (20,088) (16,045)
Net flows (240) (325) (129) (317) 2 (300) (666) (1,443) (1,011) (2,407)
Investment performance 8,626 13,334 (1,794) 12,455 (16,727) (33,310) (9,853) 12,741 32,621 (47,149)
Interest credited 42 41 41 41 40 41 44 43 165 168
Policy charges and other (610) (639) (653) (662) (683) (687) (685) (671) (2,564) (2,726)
Balance as of end of periods, net of reinsurance 236,530 248,941 246,406 257,923 240,555 206,299 195,139 205,809 257,923 205,809
Reinsured account value - balance as of end of periods — — — — — — — — — —
Balance as of end of periods, gross of reinsurance $ 236,530 $ 248,941 $ 246,406 $ 257,923 $ 240,555 $ 206,299 $ 195,139 $ 205,809 $ 257,923 $ 205,809
Annualized surrenders and withdrawals as percentage of VA account value 8.5 % 8.5 % 7.9 % 8.2 % 7.3 % 7.0 % 7.1 % 8.0 % 8.2 % 7.3 %
Variable Annuity Allocation
By Fund Type
Equity $ 153,864 $ 164,049 $ 161,605 $ 171,811 $ 158,362 $ 131,212 $ 123,536 $ 132,547 $ 171,811 $ 132,547
Bond 23,610 24,063 24,026 24,059 22,458 20,122 18,905 19,155 24,059 19,155
Balanced 46,633 48,940 48,671 50,534 47,484 41,498 39,075 40,797 50,534 40,797
Money market 2,319 2,274 2,328 2,063 2,458 2,998 3,189 3,051 2,063 3,051
Total separate account 226,426 239,326 236,630 248,467 230,762 195,830 184,705 195,550 248,467 195,550
Fixed (general account) 10,104 9,615 9,776 9,456 9,793 10,469 10,434 10,259 9,456 10,259
Total variable annuity account value $ 236,530 $ 248,941 $ 246,406 $ 257,923 $ 240,555 $ 206,299 $ 195,139 $ 205,809 $ 257,923 $ 205,809

Page 11

Jackson Financial Inc.
Quarterly Financial Supplement - LDTI Recast
(unaudited, in millions) Retail Annuities
--- Select Operating Metrics - (2/4)
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
For the Three Months Ended For the Twelve Months Ended
3/31/21 6/30/21 9/30/21 12/31/21 3/31/22 6/30/22 9/30/22 12/31/22 12/31/21 12/31/22
Account Value
Fixed and Fixed Index Annuity
Balance as of beginning of periods, net of reinsurance $ 1,253 $ 1,284 $ 1,324 $ 1,364 $ 1,390 $ 1,407 $ 1,423 $ 1,527 $ 1,253 $ 1,390
Premiums and deposits 58 39 45 140 54 59 138 155 282 406
Surrenders, withdrawals and benefits (33) 1 (8) (123) (44) (49) (42) (57) (163) (192)
Net flows 25 40 37 17 10 10 96 98 119 214
Change in value of equity option 2 1 — 2 (1) (4) (1) 2 5 (4)
Interest credited 9 9 9 11 12 14 17 14 38 57
Policy charges and other (5) (10) (6) (4) (4) (4) (8) (7) (25) (23)
Balance as of end of periods, net of reinsurance 1,284 1,324 1,364 1,390 1,407 1,423 1,527 1,634 1,390 1,634
Reinsured account value - balance as of end of periods 26,297 25,920 25,439 24,956 24,380 23,762 22,909 21,849 24,956 21,849
Balance as of end of periods, gross of reinsurance $ 27,581 $ 27,244 $ 26,803 $ 26,346 $ 25,787 $ 25,185 $ 24,436 $ 23,483 $ 26,346 $ 23,483
Annualized surrenders, withdrawals as % of FA and FIA account value1 10.4 % (0.3) % 2.4 % 35.7 % 12.6 % 13.9 % 11.4 % 14.4 % 12.3 % 13.0 %
RILA
Balance as of beginning of periods, net of reinsurance $ — $ — $ — $ — $ 110 $ 305 $ 735 $ 1,235 $ — $ 110
Premiums and deposits — — — 108 199 490 562 560 108 1,811
Surrenders, withdrawals and benefits — — — — (1) (1) (1) (5) — (8)
Net flows — — — 108 198 489 561 555 108 1,803
Change in value of equity option — — — 2 (3) (59) (59) 84 2 (37)
Interest credited — — — — — — 1 1 — 2
Policy charges and other — — — — — — (3) — — (3)
Balance as of end of periods, net of reinsurance — — — 110 305 735 1,235 1,875 110 1,875
Reinsured account value - balance as of end of periods — — — — — — — — — —
Balance as of end of periods, gross of reinsurance $ — $ — $ — $ 110 $ 305 $ 735 $ 1,235 $ 1,875 $ 110 $ 1,875
Annualized surrenders, withdrawals as % of RILA account value1 — % — % — % — % 1.9 % 0.8 % 0.4 % 1.3 % — % 0.9 %
1Represents net of reinsurance annualized surrender, withdrawals as % of net account value.

Page 12

Jackson Financial Inc.
Quarterly Financial Supplement - LDTI Recast
(unaudited, in millions) Retail Annuities
--- Select Operating Metrics - (2/4) (Continued)
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
For the Three Months Ended For the Twelve Months Ended
3/31/21 6/30/21 9/30/21 12/31/21 3/31/22 6/30/22 9/30/22 12/31/22 12/31/21 12/31/22
Payout Annuity
Balance as of beginning of periods, net of reinsurance $ 776 $ 747 $ 738 $ 726 $ 712 $ 684 $ 674 $ 655 $ 776 $ 712
Premiums and deposits 29 36 37 25 24 28 27 27 127 106
Surrenders, withdrawals and benefits (60) (50) (54) (44) (53) (43) (49) (40) (208) (185)
Net flows (31) (14) (17) (19) (29) (15) (22) (13) (81) (79)
Change in value of equity option — — — — — — — — — —
Interest credited 5 5 5 5 4 5 4 4 20 17
Policy charges and other (3) — — — (3) — (1) 3 (3) (1)
Balance as of end of periods, net of reinsurance 747 738 726 712 684 674 655 649 712 649
Reinsured account value - balance as of end of periods 75 87 109 119 139 159 172 188 119 188
Balance as of end of periods, gross of reinsurance $ 822 $ 825 $ 835 $ 831 $ 823 $ 833 $ 827 $ 837 $ 831 $ 837
Annualized surrenders, withdrawals as % of payout annuity account value1 31.5 % 26.9 % 29.5 % 24.5 % 30.4 % 25.3 % 29.5 % 24.5 % 28.1 % 27.4 %
Total Retail Annuity2
Balance as of beginning of periods, net of reinsurance $ 230,741 $ 238,561 $ 251,003 $ 248,496 $ 260,135 $ 242,951 $ 209,131 $ 198,556 $ 230,741 $ 260,135
Premiums and deposits 4,762 4,898 4,820 5,114 4,852 4,210 3,613 3,286 19,594 15,961
Surrenders, withdrawals and benefits (5,008) (5,197) (4,929) (5,325) (4,671) (4,026) (3,644) (4,089) (20,459) (16,430)
Net flows (246) (299) (109) (211) 181 184 (31) (803) (865) (469)
Investment performance 8,626 13,334 (1,794) 12,455 (16,727) (33,310) (9,853) 12,741 32,621 (47,149)
Change in value of equity option 2 1 — 4 (4) (63) (60) 86 7 (41)
Interest credited 56 55 55 57 56 60 66 62 223 244
Policy charges and other (618) (649) (659) (666) (690) (691) (697) (675) (2,592) (2,753)
Balance as of end of periods, net of reinsurance 238,561 251,003 248,496 260,135 242,951 209,131 198,556 209,967 260,135 209,967
Reinsured account value - balance as of end of periods 26,372 26,007 25,548 25,075 24,519 23,921 23,081 22,037 25,075 22,037
Balance as of end of periods, gross of reinsurance $ 264,933 $ 277,010 $ 274,044 $ 285,210 $ 267,470 $ 233,052 $ 221,637 $ 232,004 $ 285,210 $ 232,004
Annualized surrenders, withdrawals as % of account value1 8.5 % 8.5 % 7.9 % 8.4 % 7.4 % 7.1 % 7.2 % 8.0 % 8.3 % 7.3 %
1Represents net of reinsurance annualized surrender, withdrawals as % of net account value.
2Account value excludes reserves for future policy benefits.

Page 13

Jackson Financial Inc.
Quarterly Financial Supplement - LDTI Recast
(unaudited, in millions) Retail Annuities
--- Select Operating Metrics - (3/4)
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Balances as of
3/31/21 6/30/21 9/30/21 12/31/21 3/31/22 6/30/22 9/30/22 12/31/22
U.S. GAAP Reserves1
By Financial Statement Line
Separate account liabilities $ 226,795 $ 239,719 $ 237,010 $ 248,859 $ 231,113 $ 196,114 $ 184,976 $ 195,835
Reserves for future policy benefits 1,228 1,269 1,258 1,249 1,152 1,069 1,018 1,042
Other contract holder funds 38,507 37,684 37,414 36,743 36,708 37,222 36,932 36,454
Market risk benefits 3,935 5,757 6,997 6,363 3,462 3,609 2,099 789
Total $ 270,465 $ 284,429 $ 282,679 $ 293,214 $ 272,435 $ 238,014 $ 225,025 $ 234,120
By Product
Variable annuities - separate account with lifetime benefits guarantees $ 168,178 $ 177,712 $ 175,429 $ 184,031 $ 170,698 $ 144,576 $ 136,338 $ 144,629
Variable annuities - separate account w/o lifetime benefits guarantees (incl. investment-only products) 58,617 62,007 61,581 64,828 60,415 51,538 48,638 51,206
Variable annuities - general account 14,287 15,617 17,017 16,058 13,497 14,332 12,787 11,313
Total variable annuities 241,082 255,336 254,027 264,917 244,610 210,446 197,763 207,148
RILA — — — 110 306 738 1,240 1,879
Fixed annuities 13,775 13,611 13,430 13,186 12,953 12,728 12,313 11,698
Fixed index annuities 13,857 13,704 13,448 13,241 12,890 12,487 12,137 11,804
Payout annuities 1,751 1,778 1,774 1,760 1,676 1,615 1,572 1,591
Total $ 270,465 $ 284,429 $ 282,679 $ 293,214 $ 272,435 $ 238,014 $ 225,025 $ 234,120
1 Gross of reinsurance

Page 14

Jackson Financial Inc.
Quarterly Financial Supplement - LDTI Recast
(unaudited, in millions) Retail Annuities
--- Select Operating Metrics - (4/4)
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Balances as of
3/31/21 6/30/21 9/30/21 12/31/21 3/31/22 6/30/22 9/30/22 12/31/22
Variable Annuity Account Value (before reinsurance)
No Living Benefits
w/ No GMDB (return of AV) $ 26,375 $ 27,771 $ 27,715 $ 29,089 $ 27,376 $ 23,680 $ 22,399 $ 23,507
w/ ROP GMDB 15,674 16,697 16,782 17,855 16,823 14,650 13,939 14,580
w/ Enhanced GMDB 12,763 13,390 13,235 13,775 12,830 11,060 10,481 10,986
GMWB
w/ No GMDB (return of AV) 41 46 47 51 49 42 41 47
w/ ROP GMDB 5,699 5,935 5,811 6,014 5,563 4,753 4,469 4,674
w/ Enhanced GMDB 1,228 1,270 1,221 1,253 1,156 983 919 953
GMWB for Life
w/ No GMDB (return of AV) 913 1,025 1,059 1,198 1,561 1,393 1,363 1,496
w/ ROP GMDB 158,114 166,550 164,723 172,375 160,218 137,083 129,657 137,113
w/ Enhanced GMDB 13,841 14,392 14,024 14,505 13,323 11,254 10,568 11,097
GMIB
w/ ROP GMDB 1,323 1,347 1,293 1,299 1,190 1,006 934 972
w/ Enhanced GMDB 512 518 496 509 466 395 369 384
GMAB
w/ ROP GMDB 40 — — — — — — —
w/ Enhanced GMDB 7 — — — — — — —
Total $ 236,530 $ 248,941 $ 246,406 $ 257,923 $ 240,555 $ 206,299 $ 195,139 $ 205,809
Net Amount at Risk (before reinsurance)1 $ 3,637 $ 3,277 $ 3,971 $ 3,404 $ 5,831 $ 14,815 $ 19,900 $ 15,592
1 Net amount at risk (NAR) is defined as of the valuation date for each contract as the greater of Death Benefit NAR (DBNAR) and Living Benefit NAR (LBNAR), as applicable, where DBNAR is the GMDB benefit base in excess of the account value, and the LBNAR is the actuarial present value of guaranteed living benefits in excess of the account value.

Page 15

Jackson Financial Inc.
Quarterly Financial Supplement - LDTI Recast
(unaudited, in millions) Institutional Products
--- Pretax Adjusted Operating Earnings, Sales, and Key Metrics
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
For the Three Months Ended For the Twelve Months Ended
3/31/21 6/30/21 9/30/21 12/31/21 3/31/22 6/30/22 9/30/22 12/31/22 12/31/21 12/31/22
Operating Revenue
Net investment income $ 64 $ 56 $ 69 $ 71 $ 64 $ 72 $ 80 $ 96 $ 260 $ 312
Income (loss) on operating derivatives — — (1) (2) (1) (4) (8) (9) (3) (22)
Total operating revenue 64 56 68 69 63 68 72 87 257 290
Operating Benefits and Expenses
Interest credited on other contract holder funds, net of deferrals 52 48 47 41 39 47 51 64 188 201
Interest expense1 1 1 (2) — — — — 5 — 5
Operating costs and other expenses, net of deferrals 1 1 2 1 1 2 1 1 5 5
Total operating benefits and expenses 54 50 47 42 40 49 52 70 193 211
Pretax adjusted operating earnings2 $ 10 $ 6 $ 21 $ 27 $ 23 $ 19 $ 20 $ 17 $ 64 $ 79
Sales
By Product
Traditional guaranteed investment contracts (GICs) $ — $ — $ — $ 3 $ 175 $ 201 $ 64 $ 58 $ 3 $ 498
FHLBI funding agreements — — 43 429 50 — 250 — 472 300
Medium-Term Note funding agreements — — — — 750 — — 850 — 1,600
Total $ — $ — $ 43 $ 432 $ 975 $ 201 $ 314 $ 908 $ 475 $ 2,398
For the Three Months Ended For the Twelve Months Ended
3/31/21 6/30/21 9/30/21 12/31/21 3/31/22 6/30/22 9/30/22 12/31/22 12/31/21 12/31/22
Account Value
General Account
Balance as of beginning of periods $ 11,138 $ 10,579 $ 8,910 $ 8,839 $ 8,830 $ 9,173 $ 8,483 $ 8,358 $ 11,138 $ 8,830
Premiums and deposits — — 43 432 975 201 314 908 475 2,398
Surrenders, withdrawals and benefits (545) (1,735) (147) (488) (659) (868) (428) (403) (2,915) (2,358)
Net flows (545) (1,735) (104) (56) 316 (667) (114) 505 (2,440) 40
Interest credited 53 49 45 41 39 47 51 64 188 201
Policy charges and other (67) 17 (12) 6 (12) (70) (62) 92 (56) (52)
Balance as of end of periods $ 10,579 $ 8,910 $ 8,839 $ 8,830 $ 9,173 $ 8,483 $ 8,358 $ 9,019 $ 8,830 $ 9,019
GAAP Reserves Balance as of
3/31/21 6/30/21 9/30/21 12/31/21 3/31/22 6/30/22 9/30/22 12/31/22 12/31/21 12/31/22
By Product
Traditional guaranteed investment contracts (GICs) $ 1,175 $ 1,100 $ 994 $ 894 $ 1,052 $ 1,181 $ 1,162 $ 1,128 $ 894 $ 1,128
FHLBI funding agreements 1,478 1,478 1,522 1,950 2,000 2,001 2,252 2,004 1,950 2,004
Medium-Term Note funding agreements 7,925 6,332 6,322 5,986 6,121 5,301 4,944 5,887 5,986 5,887
Total $ 10,579 $ 8,910 $ 8,839 $ 8,830 $ 9,173 $ 8,483 $ 8,358 $ 9,019 $ 8,830 $ 9,019
1At September 30, 2021, interest expense recorded for certain funding agreements has been reclassified to interest credited on other contract holder funds, prospectively. In 4Q 2022, this represented the interest expense for the repurchase agreement on guaranteed investment contracts.
2See explanation of Non-GAAP Financial Measures at the end of this Financial Supplement.

Page 16

Jackson Financial Inc.
Quarterly Financial Supplement - LDTI Recast
(unaudited, in millions) Closed Life and Annuity Blocks
--- Pretax Adjusted Operating Earnings and Key Metrics
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
For the Three Months Ended For the Twelve Months Ended
3/31/21 6/30/21 9/30/21 12/31/21 3/31/22 6/30/22 9/30/22 12/31/22 12/31/21 12/31/22
Operating Revenue
Fee income $ 125 $ 123 $ 123 $ 121 $ 121 $ 119 $ 118 $ 116 $ 492 $ 474
Premiums 38 33 39 35 37 35 36 26 145 134
Net investment income 265 213 245 227 189 167 166 184 950 706
Income (loss) on operating derivatives 20 18 18 16 15 13 7 (4) 72 31
Other income 9 13 7 10 8 9 8 10 39 35
Total operating revenue 457 400 432 409 370 343 335 332 1,698 1,380
Operating Benefits and Expenses
Death, other policy benefits and change in policy reserves, net of deferrals 188 160 188 216 225 194 168 147 752 734
Interest credited on other contract holder funds, net of deferrals 104 106 106 103 101 101 101 109 419 412
(Gain) loss from updating future policy benefits cash flow assumptions, net 54 9 16 1 18 14 (36) (20) 80 (24)
Operating costs and other expenses, net of deferrals 48 44 39 48 32 19 23 56 179 130
Amortization of deferred acquisition costs 3 3 3 4 3 3 3 2 13 11
Total operating benefits and expenses 397 322 352 372 379 331 259 294 1,443 1,263
Pretax adjusted operating earnings1 $ 60 $ 78 $ 80 $ 37 $ (9) $ 12 $ 76 $ 38 $ 255 $ 117
For the Three Months Ended For the Twelve Months Ended
3/31/21 6/30/21 9/30/21 12/31/21 3/31/22 6/30/22 9/30/22 12/31/22 12/31/21 12/31/22
Account Value2
General Account
Balance as of beginning of periods, net of reinsurance $ 8,964 $ 8,865 $ 8,789 $ 8,709 $ 8,637 $ 8,532 $ 8,449 $ 8,372 $ 8,964 $ 8,637
Premiums and deposits 85 80 82 80 82 76 76 75 327 309
Surrenders, withdrawals and benefits (161) (138) (142) (136) (162) (135) (132) (150) (577) (579)
Net flows (76) (58) (60) (56) (80) (59) (56) (75) (250) (270)
Interest credited 104 103 103 103 99 99 99 107 413 404
Policy charges and other (127) (121) (123) (119) (124) (123) (120) (116) (490) (483)
Balance as of end of periods, net of reinsurance 8,865 8,789 8,709 8,637 8,532 8,449 8,372 8,288 8,637 8,288
Reinsured account value - balance as of end of periods 4,337 4,359 4,353 4,327 4,280 4,269 4,320 4,246 4,327 4,246
Balance as of end of periods, gross of reinsurance 13,202 13,148 13,062 12,964 12,812 12,718 12,692 12,534 12,964 12,534
Balance as of
GAAP Reserves 3/31/21 6/30/21 9/30/21 12/31/21 3/31/22 6/30/22 9/30/22 12/31/22 12/31/21 12/31/22
By Financial Statement Line
Separate account liabilities $ 87 $ 87 $ 86 $ 90 $ 85 $ 70 $ 66 $ 71 $ 90 $ 71
Reserves for future policy benefits 12,930 13,070 12,771 12,509 11,416 10,565 9,849 9,866 12,509 9,866
Other contract holder funds 13,202 13,148 13,062 12,964 12,812 12,718 12,692 12,534 12,964 12,534
Market risk benefits 7 7 7 6 7 7 7 8 6 8
Total $ 26,226 $ 26,312 $ 25,926 $ 25,569 $ 24,320 $ 23,360 $ 22,614 $ 22,479 $ 25,569 $ 22,479
1See explanation of Non-GAAP Financial Measures at the end of this Financial Supplement.
2Account value excludes reserve for future policy benefits.

Page 17

Jackson Financial Inc.
Quarterly Financial Supplement - LDTI Recast
(unaudited, in millions) Corporate and Other1
--- Pretax Adjusted Operating Earnings
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
For the Three Months Ended For the Twelve Months Ended
3/31/21 6/30/21 9/30/21 12/31/21 3/31/22 6/30/22 9/30/22 12/31/22 12/31/21 12/31/22
Operating Revenue
Fee income $ 18 $ 16 $ 15 $ 16 $ 16 $ 14 $ 13 $ 9 $ 65 $ 52
Net investment income (loss) — 32 (23) 46 34 9 22 — 55 65
Income (loss) on operating derivatives 4 8 8 12 10 8 2 (6) 32 14
Other income (expense) 2 6 (2) 2 1 1 — 6 8 8
Total operating revenue 24 62 (2) 76 61 32 37 9 160 139
Operating Benefits and Expenses
Interest expense — — 2 13 15 18 21 22 15 76
Operating costs and other expenses, net of deferrals 41 39 29 38 40 6 28 49 147 123
Total operating benefits and expenses 41 39 31 51 55 24 49 71 162 199
Pretax adjusted operating earnings2 $ (17) $ 23 $ (33) $ 25 $ 6 $ 8 $ (12) $ (62) $ (2) $ (60)
1Corporate and Other includes the intersegment eliminations.
2See explanation of Non-GAAP Financial Measures at the end of this Financial Supplement.

Page 18

Jackson Financial Inc.
Quarterly Financial Supplement - LDTI Recast
(unaudited, in millions) Consolidated Composition of Invested Assets
--- Balances as of
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
3/31/21 6/30/21 9/30/21 12/31/21 3/31/22 6/30/22 9/30/22 12/31/22
Invested Asset Reconciliation
Total investments $ 75,881 $ 74,736 $ 74,203 $ 74,227 $ 69,345 $ 67,127 $ 65,890 $ 65,946
Cash and cash equivalents 1,573 1,536 2,482 2,623 2,674 5,258 5,331 4,298
Total investments and cash and cash equivalents $ 77,453 $ 76,272 $ 76,685 $ 76,850 $ 72,019 $ 72,385 $ 71,221 $ 70,244
Breakdown of Invested Assets
By Asset Class Excluding Funds Withheld Assets
Debt securities
U.S. government securities $ 4,318 $ 4,312 $ 4,306 $ 4,166 $ 3,121 $ 2,839 $ 3,906 $ 5,034
Other government securities 1,088 1,114 1,086 1,067 1,024 914 855 850
Corporate securities 25,178 24,791 25,045 25,940 24,252 23,181 21,930 21,837
Residential mortgage-backed 236 233 231 217 221 223 228 250
Commercial mortgage-backed 1,516 1,205 1,191 1,199 1,175 1,165 1,211 1,220
Other asset-backed securities 1,371 1,195 1,293 1,528 1,592 1,656 1,700 1,790
Total debt securities 33,707 32,850 33,152 34,117 31,385 29,978 29,830 30,981
Equity securities 151 155 162 163 162 172 150 316
Mortgage loans 7,479 7,260 7,018 6,743 6,764 6,935 6,877 6,840
Policy loans 1,044 1,027 1,008 992 973 959 946 942
Freestanding derivative instruments 1,014 1,466 1,103 1,374 868 1,133 1,767 1,173
Other invested assets 2,483 2,340 2,233 2,484 2,611 2,759 2,753 2,802
Subtotal 45,878 45,098 44,676 45,873 42,763 41,936 42,323 43,054
Funds withheld assets 30,003 29,638 29,527 28,354 26,582 25,191 23,567 22,892
Total investments $ 75,881 $ 74,736 $ 74,203 $ 74,227 $ 69,345 $ 67,127 $ 65,890 $ 65,946
Fixed Income Assets by Rating Excluding Funds Withheld Assets
AAA 21.6 % 20.7 % 20.3 % 19.5 % 17.1 % 17.0 % 20.8 % 23.9 %
AA 7.3 % 7.9 % 7.5 % 7.6 % 8.4 % 8.0 % 8.0 % 7.7 %
A 30.2 % 29.6 % 30.3 % 29.6 % 29.7 % 30.3 % 29.5 % 29.3 %
BBB 35.3 % 35.6 % 35.5 % 36.5 % 37.4 % 36.1 % 33.3 % 30.9 %
Investment grade 94.4 % 93.8 % 93.6 % 93.2 % 92.6 % 91.4 % 91.6 % 91.8 %
BB 2.8 % 2.8 % 3.0 % 3.1 % 3.3 % 3.6 % 3.4 % 3.5 %
B and below 2.8 % 3.4 % 3.4 % 3.7 % 4.1 % 5.0 % 5.0 % 4.7 %
Below investment grade 5.6 % 6.2 % 6.4 % 6.8 % 7.4 % 8.6 % 8.4 % 8.2 %
Total debt securities 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 %

Page 19

Jackson Financial Inc.
Quarterly Financial Supplement - LDTI Recast
(unaudited, in millions) Consolidated Composition of Debt Securities Excluding Funds Withheld Assets
--- Balances as of
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
3/31/21 6/30/21 9/30/21 12/31/21 3/31/22 6/30/22 9/30/22 12/31/22
Debt Securities Excluding Funds Withheld Assets
U.S. government securities $ 4,318 $ 4,312 $ 4,306 $ 4,166 $ 3,121 $ 2,839 $ 3,906 $ 5,034
Other government securities 1,088 1,114 1,086 1,067 1,024 914 855 850
Corporate securities:
Utilities 4,859 4,870 4,814 4,883 4,461 4,155 3,847 3,958
Energy 2,097 2,118 2,111 2,190 1,989 1,858 1,748 1,735
Banking 1,215 1,231 1,192 1,307 1,137 1,232 1,267 1,235
Healthcare 2,323 2,248 2,327 2,369 2,209 2,061 1,939 1,864
Finance/insurance 2,426 2,716 2,801 3,074 3,098 2,915 2,834 2,811
Technology/telecom 1,955 1,735 1,763 1,831 1,672 1,691 1,565 1,545
Consumer goods 1,769 1,707 1,731 1,814 1,765 1,569 1,498 1,557
Industrial 1,290 1,228 1,252 1,291 1,244 1,127 991 955
Capital goods 1,675 1,603 1,614 1,597 1,420 1,446 1,337 1,293
Real estate 1,234 1,088 1,102 1,150 1,065 1,039 949 985
Media 750 874 733 740 765 750 737 706
Transportation 871 741 851 924 831 783 798 797
Retail 954 909 906 937 889 866 825 806
Other 1,760 1,723 1,848 1,833 1,707 1,689 1,595 1,590
Total corporate securities 25,178 24,791 25,045 25,940 24,252 23,181 21,930 21,837
Residential mortgage-backed 236 233 231 217 221 223 228 250
Commercial mortgage-backed 1,516 1,205 1,191 1,199 1,175 1,165 1,211 1,220
Other asset-backed securities 1,371 1,195 1,293 1,528 1,592 1,656 1,700 1,790
Total debt securities excluding funds withheld assets $ 33,707 $ 32,850 $ 33,152 $ 34,117 $ 31,385 $ 29,978 $ 29,830 $ 30,981

Page 20

Jackson Financial Inc.
Quarterly Financial Supplement - LDTI Recast
(unaudited, in millions) Consolidated Net Investment Income1
--- For the Three Months Ended For the Twelve Months Ended or As of
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
3/31/21 6/30/21 9/30/21 12/31/21 3/31/22 6/30/22 9/30/22 12/31/22 12/31/21 12/31/22
Income Pct. Amount Income Pct. Amount Income Pct. Amount Income Pct. Amount Income Pct. Amount Income Pct. Amount Income Pct. Amount Income Pct. Amount Income Pct. Amount Income Pct. Amount
Debt Securities
Income (loss) 4.0 % $ 323 3.5 % $ 277 3.5 % $ 272 3.6 % $ 282 3.4 % $ 273 2.6 % $ 213 3.7 % $ 306 3.3 % $ 284 3.6 % $ 1,154 3.2 % $ 1,076
Ending assets - income pct. value2 32,305 30,631 31,189 32,317 32,851 32,650 34,117 34,416 32,317 34,416
Ending assets - carrying value 33,706 32,851 33,140 34,117 31,385 29,978 29,830 30,981 34,117 30,981
Equity Securities
Income (loss) (0.8) % — 18.1 % 7 (0.5) % — 2.5 % 1 2.5 % 1 14.4 % 6 (62.1) % (25) 3.4 % 2 5.1 % 8 (8.3) % (16)
Ending assets - carrying value 151 155 162 163 162 172 150 316 163 316
Mortgage Loans
Income (loss) 4.2 % 82 4.3 % 80 4.4 % 79 4.5 % 78 4.3 % 73 3.9 % 68 4.0 % 70 4.3 % 74 4.3 % 319 4.1 % 285
Ending assets - income pct. value2 7,552 7,343 7,088 6,813 6,821 7,002 6,947 6,925 6,813 6,925
Ending assets - carrying value 7,479 7,260 7,018 6,743 6,764 6,935 6,877 6,840 6,743 6,840
Policy Loans
Income (loss) 7.1 % 19 6.6 % 17 7.9 % 20 6.8 % 17 6.9 % 17 7.0 % 17 7.6 % 18 7.2 % 17 7.1 % 73 7.2 % 69
Ending assets - carrying value 1,043 1,027 1,008 992 973 959 946 942 992 942
Limited Partnerships
Income (loss) 48.9 % 243 29.4 % 150 40.3 % 193 42.0 % 209 19.9 % 108 8.7 % 50 (1.2) % (7) (1.2) % (7) 40.1 % 795 6.3 % 144
Ending assets - carrying value 2,110 1,968 1,863 2,116 2,223 2,372 2,369 2,419 2,116 2,419
Other Invested Assets (ex. Limited Partnerships)
Income (loss) 4.3 % 4 5.4 % 5 2.2 % 2 4.3 % 4 1.1 % 1 1.0 % 1 2.1 % 2 4.2 % 4 4.0 % 15 2.1 % 8
Ending assets - carrying value 374 372 370 368 388 387 384 383 368 383
Total Invested Assets (ex. Derivative3)
Income (loss) 6.1 % $ 671 5.0 % $ 536 5.4 % $ 566 5.6 % $ 591 4.4 % $ 473 3.3 % $ 355 3.3 % $ 364 3.3 % $ 374 5.5 % $ 2,364 3.6 % $ 1,566
Ending assets - income pct. value2 43,535 41,496 41,680 42,769 43,418 43,542 44,913 45,401 42,769 45,401
Ending assets - carrying value 44,863 43,632 43,561 44,499 41,895 40,803 40,556 41,881 44,499 41,881
Cash and Short-Term Investments
Income (loss) 0.0 % — 0.1 % — 0.0 % — 0.0 % — 0.0 % — 1.0 % 9 1.0 % 12 1.8 % 20 0.0 % — 1.1 % 41
Ending assets - carrying value 1,189 1,189 2,099 2,185 2,224 4,934 4,822 4,038 2,185 4,038
Funds Withheld Assets
Income (loss) 3.9 % 291 4.0 % 294 4.1 % 300 4.2 % 303 3.7 % 260 5.3 % 364 4.6 % 313 4.8 % 317 4.0 % 1,188 4.6 % 1,254
Ending assets - income pct. value2, 4 30,050 29,211 29,298 28,410 27,744 27,608 26,908 25,792 28,410 25,792
Ending assets - carrying value4 30,371 29,967 29,884 28,749 26,974 25,405 23,893 23,055 28,749 23,055
Total Net Investment Income
Investment income $ 962 $ 830 $ 866 $ 894 $ 733 $ 728 $ 689 $ 711 $ 3,552 $ 2,861
Less: investment fees (32) (29) (29) (38) (43) (36) (49) 28 (128) (100)
Investment income, net $ 930 $ 801 $ 837 $ 856 $ 690 $ 692 $ 640 $ 739 $ 3,424 $ 2,761
Total Operating Net Investment Income
Investment income, net $ 930 $ 801 $ 837 $ 856 $ 690 $ 692 $ 640 $ 739 $ 3,424 $ 2,761
Less: investment income on funds withheld assets (291) (294) (300) (303) (260) (364) (313) (317) (1,188) (1,254)
Less: investment income related to noncontrolling interests (68) (56) (62) (76) (31) (31) 11 9 (262) (42)
Less: investment income due to consolidation (31) — (4) 18 2 64 2 (47) (17) 21
Operating investment income, net $ 540 $ 451 $ 471 $ 495 $ 401 $ 361 $ 340 $ 384 $ 1,957 $ 1,486
1Income percentages are annualized.
2Ending assets - Income Pct. Value is amortized cost for debt securities and amortized cost excluding loss allowance for mortgage loans.
3Results of derivatives are not included in Net Investment Income and the asset value has been excluded from Ending Assets.
4Details of the Income Pct. Value and Carrying Value for the Funds Withheld Assets as of the current period (12/31/22) are as follows:
Income Pct. Value Carrying Value
Debt Securities $ 16,501 $ 13,781
Equity Securities 77 77
Mortgage Loans 4,726 4,709
Policy Loans 3,435 3,435
Limited Partnerships 793 793
Cash and Short-Term Investments 260 260
Total $ 25,792 $ 23,055

Page 21

Jackson Financial Inc.
Quarterly Financial Supplement - LDTI Recast
(unaudited, in millions) Market Risk Benefits
--- Variable Annuities, Net
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
For the Three Months Ended For the Twelve Months Ended
3/31/21 6/30/21 9/30/21 12/31/21 3/31/22 6/30/22 9/30/22 12/31/22 12/31/21 12/31/22
Net liability balance, beginning of periods $ 9,908 $ 3,883 $ 5,685 $ 6,922 $ 6,281 $ 3,405 $ 3,576 $ 2,081 $ 9,908 $ 6,281
Net liability beginning of periods cumulative effect of changes in non-performance risk1 743 173 (113) (273) 326 1,254 2,262 2,809 743 326
Net liability balance, beginning of periods, before effect of changes in non-performance risk 10,651 4,056 5,572 6,649 6,607 4,659 5,838 4,890 10,651 6,607
Effect of changes in interest rates (6,293) 2,490 (261) 871 (4,520) (4,866) (4,071) (680) (3,193) (14,137)
Effect of fund performance (702) (986) 169 (869) 1,638 5,112 1,954 (2,272) (2,388) 6,432
Effect of changes in equity index volatility (101) (401) 933 (476) 486 618 707 (235) (45) 1,576
Effect of expected policyholder behavior (1) 140 39 234 77 224 222 9 412 532
Effect of actual policyholder behavior different from expected (120) (248) (179) (200) (17) (242) (84) 113 (747) (230)
Effect of time 622 521 376 382 388 333 324 662 1,901 1,707
Effect of changes in assumptions — — — 16 — — — 465 16 465
Net liability balance, end of periods, before effect of changes in non-performance risk 4,056 5,572 6,649 6,607 4,659 5,838 4,890 2,952 6,607 2,952
Net liability end of periods cumulative effect of changes in non-performance risk1 (173) 113 273 (326) (1,254) (2,262) (2,809) (2,185) (326) (2,185)
Net liability balance, end of periods, gross 3,883 5,685 6,922 6,281 3,405 3,576 2,081 767 6,281 767
Reinsurance recoverable on market risk benefits at fair value, end of periods (290) (291) (301) (284) (255) (257) (228) (183) (284) (183)
Net liability balance, end of periods, net of reinsurance $ 3,593 $ 5,394 $ 6,621 $ 5,997 $ 3,150 $ 3,319 $ 1,853 $ 584 $ 5,997 $ 584
1 Changes in non-performance risk are reported in AOCI, rather than the Income Statements.
Reconciliation of Market Risk Benefits
Balance as of
Variable Annuities 3/31/21 6/30/21 9/30/21 12/31/21 3/31/22 6/30/22 9/30/22 12/31/22 12/31/21 12/31/22
Market risk benefit - (assets) $ (2,342) $ (1,742) $ (1,383) $ (1,658) $ (2,427) $ (2,320) $ (3,021) $ (4,856) $ (1,658) $ (4,856)
Market risk benefit - liabilities 6,225 7,427 8,305 7,939 5,832 5,896 5,102 5,623 7,939 5,623
Market risk benefit - net liabilities $ 3,883 $ 5,685 $ 6,922 $ 6,281 $ 3,405 $ 3,576 $ 2,081 $ 767 $ 6,281 $ 767
Other Products
Market risk benefit - (assets) $ (8) $ (6) $ (6) $ (6) $ (6) $ (9) $ (11) $ (9) $ (6) $ (9)
Market risk benefit - liabilities 67 85 88 94 70 49 36 39 94 39
Market risk benefit - net liabilities $ 59 $ 79 $ 82 $ 88 $ 64 $ 40 $ 25 $ 30 $ 88 $ 30
Total Balance Sheet Position
Market risk benefit - (assets) $ (2,350) $ (1,748) $ (1,389) $ (1,664) $ (2,433) $ (2,329) $ (3,032) $ (4,865) $ (1,664) $ (4,865)
Market risk benefit - liabilities 6,292 7,512 8,393 8,033 5,902 5,945 5,138 5,662 8,033 5,662
Market risk benefit - net liabilities $ 3,942 $ 5,764 $ 7,004 $ 6,369 $ 3,469 $ 3,616 $ 2,106 $ 797 $ 6,369 $ 797

Page 22

Jackson Financial Inc.
Quarterly Financial Supplement - LDTI Recast
(unaudited, in millions) Deferred Acquisition Costs
--- For the Three Months Ended or As of For the Twelve Months Ended or As of
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
3/31/21 6/30/21 9/30/21 12/31/21 3/31/22 6/30/22 9/30/22 12/31/22 12/31/21 12/31/22
Consolidated
Balance as of beginning of period $ 14,043 $ 13,911 $ 13,783 $ 13,650 $ 13,525 $ 13,387 $ 13,249 $ 13,090 $ 14,043 $ 13,525
Deferrals 199 200 195 195 179 169 146 130 789 624
Amortization related to:
Operating amortization (141) (142) (144) (143) (142) (144) (142) (140) (570) (568)
Non-operating amortization1 (190) (186) (184) (177) (175) (163) (163) (157) (737) (658)
Total amortization (expense) benefit (331) (328) (328) (320) (317) (307) (305) (297) (1,307) (1,226)
Balance as of end of period, gross $ 13,911 $ 13,783 $ 13,650 $ 13,525 $ 13,387 $ 13,249 $ 13,090 $ 12,923 $ 13,525 $ 12,923
1 Amortization of the balance of unamortized deferred acquisition costs at the date of transition to LDTI on January 1, 2021 associated with items excluded from adjusted operating earnings prior to transition.

Page 23

Jackson Financial Inc.
Quarterly Financial Supplement - LDTI Recast
(unaudited, in millions) Key Statutory Metrics
--- For the Three Months Ended For the Twelve Months Ended
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
3/31/21 6/30/21 9/30/21 12/31/21 3/31/22 6/30/22 9/30/22 12/31/22 12/31/21 12/31/22
Statutory Operating Income (Loss) $ 1,260 $ 1,203 $ 1,150 $ 1,483 $ 1,000 $ 184 $ 1,036 $ 1,899 $ 5,096 $ 4,119
Statutory Net Income (Loss) $ (1,148) $ 198 $ 600 $ 486 $ 1,699 $ 1,773 $ (1,312) $ 1,528 $ 136 $ 3,688
Dividends paid to parent $ — $ — $ — $ — $ — $ — $ — $ — $ — $ —
Capital contribution received from / (return of capital paid to) parent — — 1,375 — (600) — — — 1,375 (600)
Dividends Net of Paid-in Capital $ — $ — $ 1,375 $ — $ (600) $ — $ — $ — $ 1,375 $ (600)
Balances as of
3/31/21 6/30/21 9/30/21 12/31/21 3/31/22 6/30/22 9/30/22 12/31/22 12/31/21 12/31/22
Capitalization
Total adjusted capital (TAC) $ 3,440 $ 4,410 $ 6,825 $ 6,627 $ 5,366 $ 8,725 $ 9,496 $ 6,989 $ 6,627 $ 6,989
RBC - company action level n/a n/a n/a $ 1,143 n/a n/a n/a $ 1,286 $ 1,143 $ 1,286
RBC ratio - company action level n/a n/a n/a 580 % n/a n/a n/a 544 % 580 % 544 %
Statutory Admitted Assets $ 285,531 $ 294,958 $ 292,652 $ 303,194 $ 285,168 $ 256,557 $ 247,516 $ 254,629 $ 303,194 $ 254,629
Statutory Liabilities $ 282,587 $ 291,059 $ 286,345 $ 297,096 $ 280,301 $ 248,840 $ 239,015 $ 248,642 $ 297,096 $ 248,642
NOTE: Statutory metrics reflect values for Jackson National Life Insurance Company.

Page 24

Jackson Financial Inc.
Quarterly Financial Supplement - LDTI Recast
Non-GAAP Financial Measures
---
In addition to presenting our results of operations and financial condition in accordance with U.S. GAAP, we use and report, selected non-GAAP financial measures. Management believes that the use of these non-GAAP financial measures, together with relevant U.S. GAAP financial measures, provides a better understanding of our results of operations, financial condition and the underlying performance drivers of our business. These non-GAAP financial measures should be considered supplementary to our results of operations and financial condition that are presented in accordance with U.S. GAAP and should not be viewed as a substitute for the U.S. GAAP financial measures. Other companies may use similarly titled non-GAAP financial measures that are calculated differently from the way we calculate such measures. Consequently, our non-GAAP financial measures may not be comparable to similar measures used by other companies. These non-GAAP financial measures should not be viewed as substitutes for the most directly comparable financial measures calculated in accordance with U.S. GAAP.
---
Adjusted Operating Earnings
Adjusted Operating Earnings is an after-tax non-GAAP financial measure, which we believe should be used to evaluate our financial performance on a consolidated basis by excluding certain items that may be highly variable from period to period due to accounting treatment under U.S. GAAP or that are non-recurring in nature, as well as certain other revenues and expenses that we do not view as driving our underlying performance. Adjusted Operating Earnings should not be used as a substitute for net income as calculated in accordance with U.S. GAAP. However, we believe the adjustments to net income are useful for gaining an understanding of our overall results of operations.
Adjusted Operating Earnings equals our net income adjusted to eliminate the impact of the following items:
1) Net Hedging Results: Comprised of: (i) fees attributed to guaranteed benefits; (ii) changes in the fair value of freestanding derivatives used to manage the risk associated with market risk benefits and other guaranteed benefit features; (iii) the movements in reserves, market risk benefits, guaranteed benefit features accounted for as embedded derivative instruments, and related claims and benefit payments; (iv) amortization of the balance of unamortized deferred acquisition costs at the date of transition to current accounting guidance on January 1, 2021 associated with items excluded from adjusted operating earnings prior to transition to LDTI; and (v) the impact on the valuation of Net Hedging Results arising from changes in underlying actuarial assumptions. These items are excluded from adjusted operating earnings as they may vary significantly from period to period due to near-term market conditions and therefore are not directly comparable or reflective of the underlying performance of our business. We believe this approach appropriately removes the impact to both revenue and related expenses associated with Net Hedging Results and provides investors a better picture of the drivers of our underlying performance.
2) Net Realized Investment Gains and Losses: Comprised of: (i) realized investment gains and losses associated with the periodic sales or disposals of securities, excluding those held within our trading portfolio; and (ii) impairments of securities, after adjustment for the non-credit component of the impairment charges. These items are excluded from pretax adjusted operating earnings as they may vary significantly from period to period due to near-term market conditions and therefore are not directly comparable or reflective of the underlying performance of our business. We believe this approach provides investors a better picture of the drivers of our underlying performance.
3) Change in Value of Funds Withheld Embedded Derivative and Net investment income on funds withheld assets: Comprised of (i) the change in fair value of funds withheld embedded derivatives; and (ii) net investment income on funds withheld assets related to funds withheld reinsurance transactions. These items are excluded from pretax adjusted operating earnings as they are not reflective of the underlying performance of our business. We believe this approach provides investors a better picture of the drivers of our underlying performance.
4) Other items: Comprised of: (i) the impact of investments that are consolidated in our financial statements due to U.S. GAAP accounting requirements, such as our investments in collateralized loan obligations (CLOs), but for which the consolidation effects are not consistent with our economic interest or exposure to those entities, and (ii) one-time or other non-recurring items, such as costs relating to our separation from Prudential. These items are excluded from adjusted operating earnings as they are not reflective of the underlying performance of our business. We believe this approach provides investors a better picture of the drivers of our underlying performance.
Operating income taxes are calculated using the prevailing corporate federal income tax rate of 21% while taking into account any items recognized differently in our financial statements and federal income tax returns, including the dividends received deduction and other tax credits. For interim reporting periods, the company uses an estimated annual effective tax rate ("ETR") in computing its tax provision including consideration of discrete items.

Page 25

Jackson Financial Inc.
Quarterly Financial Supplement - LDTI Recast
Non-GAAP Financial Measures
---
Adjusted Book Value
---
Adjusted Book Value excludes Accumulated Other Comprehensive Income (Loss) ("AOCI") attributable to Jackson Financial Inc ("JFI"). AOCI attributable to JFI excludes AOCI arising from investments held within the funds withheld account related to the Athene Reinsurance Transaction. We exclude AOCI attributable to JFI from Adjusted Book Value because our invested assets are generally invested to closely match the duration of our liabilities, which are longer duration in nature, and therefore we believe period-to-period fair market value fluctuations in AOCI to be inconsistent with this objective. We believe excluding AOCI attributable to JFI is more useful to investors in analyzing trends in our business.
Adjusted Return on Equity
We use Adjusted Operating ROE to manage our business and evaluate our financial performance. Adjusted Operating ROE excludes items that vary from period-to-period due to accounting treatment under U.S. GAAP or that are non-recurring in nature, as such items may distort the underlying performance of our business. We calculate Adjusted Operating ROE by dividing our Adjusted Operating Earnings by average Adjusted Book Value.
Adjusted Book Value and Adjusted Operating ROE should not be used as substitutes for total shareholders’ equity and ROE as calculated using annualized net income and average equity in accordance with U.S. GAAP. However, we believe the adjustments to equity and earnings are useful to gaining an understanding of our overall results of operations.
Financial Leverage Ratio
We use the Financial Leverage Ratio to manage our financial flexibility and ensure that we maintain our financial strength ratings. Total financial leverage is the ratio of total debt to the Total Adjusted Capitalization (combined total debt and Adjusted Book Value).

Page 26

Jackson Financial Inc.
Quarterly Financial Supplement - LDTI Recast
(unaudited, in millions, except percentages) Adjusted Operating Earnings Reconciliation
--- For the Three Months Ended For the Twelve Months Ended
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
3/31/21 6/30/21 9/30/21 12/31/21 3/31/22 6/30/22 9/30/22 12/31/22 12/31/21 12/31/22
Adjusted Operating Earnings
Net income (loss) attributable to Jackson Financial Inc. $ 4,754 $ (1,078) $ (118) $ (141) $ 2,194 $ 3,263 $ 1,879 $ (1,150) $ 3,417 $ 6,186
Income tax expense (benefit) 1,115 (253) (99) (97) 388 845 657 (385) 666 1,505
Pretax income (loss) attributable to Jackson Financial Inc. 5,869 (1,331) (217) (238) 2,582 4,108 2,536 (1,535) 4,083 7,691
Non-Operating Adjustments (Income) Loss
Guaranteed benefits and hedging results:
Fees attributable to guarantee benefit reserves (672) (701) (728) (754) (764) (765) (771) (777) (2,855) (3,077)
Net movement in freestanding derivatives 3,031 442 493 1,708 1,476 (2,847) 253 3,862 5,674 2,744
Market risk benefits, net (6,522) 1,512 1,066 (22) (1,907) 1,184 (913) (1,900) (3,966) (3,536)
Net reserve and embedded derivative movements 46 33 29 33 40 — 7 175 141 222
Amortization of DAC associated with non-operating items at date of transition to LDTI 190 186 184 177 173 166 162 157 737 658
Total guaranteed benefits and hedging results (3,927) 1,472 1,044 1,142 (982) (2,262) (1,262) 1,517 (269) (2,989)
Net realized investment (gains) losses (152) (16) (36) 22 130 (5) 6 228 (182) 359
Net realized investment (gains) losses on funds withheld assets (898) 768 115 36 (1,028) (1,077) (555) 474 21 (2,186)
Net investment income on funds withheld assets (291) (294) (300) (303) (260) (364) (313) (317) (1,188) (1,254)
Other items (7) 27 9 7 3 64 2 (47) 36 22
Total non-operating adjustments (5,275) 1,957 832 904 (2,137) (3,644) (2,122) 1,855 (1,582) (6,048)
Pretax adjusted operating earnings 594 626 615 666 445 464 414 320 2,501 1,643
Operating income tax expense (benefit) 59 97 91 75 68 57 38 26 322 189
Adjusted operating earnings $ 535 $ 529 $ 524 $ 591 $ 377 $ 407 $ 376 $ 294 $ 2,179 $ 1,454
Effective tax rates on adjusted operating earnings 9.9 % 15.4 % 14.8 % 11.3 % 15.3 % 12.3 % 9.2 % 8.1 % 12.9 % 11.5 %

Page 27

Jackson Financial Inc.
Quarterly Financial Supplement - LDTI Recast
(unaudited, in millions, except per share and shares outstanding data) Select GAAP to Non-GAAP Reconciliations
--- For the Three Months Ended For the Twelve Months Ended
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
3/31/21 6/30/21 9/30/21 12/31/21 3/31/22 6/30/22 9/30/22 12/31/22 12/31/21 12/31/22
Net Income (Loss) $ 4,822 $ (1,022) $ (56) $ (65) $ 2,225 $ 3,294 $ 1,868 $ (1,158) $ 3,679 $ 6,229
Income attributable to non-controlling interest 68 56 62 76 31 31 (11) (8) 262 43
Net Income (Loss) Attributable to Jackson Financial Inc. [a] $ 4,754 $ (1,078) $ (118) $ (141) $ 2,194 $ 3,263 $ 1,879 $ (1,150) $ 3,417 $ 6,186
Total Shareholders' Equity $ 8,746 $ 8,223 $ 7,701 $ 7,641 $ 8,194 $ 9,706 $ 10,219 $ 8,646 $ 7,641 $ 8,646
Average Shareholders' Equity [b] $ 7,592 $ 8,485 $ 7,962 $ 7,671 $ 7,918 $ 8,950 $ 9,963 $ 9,433 $ 7,750 $ 8,881
Total ROE [a]/[b]; Annualized 250.5 % (50.8) % (5.9) % (7.4) % 110.8 % 145.8 % 75.4 % (48.8) % 44.1 % 69.7 %
Adjusted Operating Earnings [c] $ 535 $ 529 $ 524 $ 591 $ 377 $ 407 $ 376 $ 294 $ 2,179 $ 1,454
Adjusted Book Value:
Total shareholders' equity $ 8,746 $ 8,223 $ 7,701 $ 7,641 $ 8,194 $ 9,706 $ 10,219 $ 8,646 $ 7,641 $ 8,646
Exclude AOCI attributable to Jackson Financial Inc. (713) (909) (649) (1,073) (567) 62 716 1,272 (1,073) 1,272
Adjusted Book Value $ 8,033 $ 7,314 $ 7,052 $ 6,568 $ 7,627 $ 9,768 $ 10,935 $ 9,918 $ 6,568 $ 9,918
Average Adjusted Book Value [d] $ 6,125 $ 7,674 $ 7,183 $ 6,810 $ 7,098 $ 8,698 $ 10,352 $ 10,427 $ 6,637 $ 8,963
Adjusted Operating ROE [c]/[d]; Annualized 34.9 % 27.6 % 29.2 % 34.7 % 21.2 % 18.7 % 14.5 % 11.3 % 32.8 % 16.2 %
Per Share Data (Common Shareholders)
Net income (loss) (basic) $ 50.33 $ (11.41) $ (1.25) $ (1.52) $ 25.41 $ 37.96 $ 22.08 $ (13.74) $ 36.35 $ 72.34
Net income (loss) (diluted)1 $ 50.33 $ (11.41) $ (1.25) $ (1.52) $ 24.39 $ 36.59 $ 21.38 $ (13.74) $ 36.17 $ 69.75
Adjusted operating earnings per share (diluted) $ 5.66 $ 5.60 $ 5.55 $ 6.26 $ 4.19 $ 4.56 $ 4.28 $ 3.39 $ 23.07 $ 16.39
Book value per common share (diluted) $ 92.59 $ 87.05 $ 81.52 $ 84.38 $ 92.01 $ 110.90 $ 117.95 $ 100.56 $ 84.38 $ 100.56
Adjusted book value per common share (diluted) $ 85.04 $ 77.43 $ 74.65 $ 72.53 $ 85.64 $ 111.61 $ 126.21 $ 115.36 $ 72.53 $ 115.36
Shares Outstanding
Weighted average number of common shares (basic) 94,464,343 94,464,343 94,464,343 92,600,373 86,352,586 85,968,564 85,098,192 83,695,001 93,994,520 85,513,787
Weighted average number of common shares (diluted)1 94,464,343 94,464,343 94,464,343 92,600,373 89,959,862 89,168,775 87,895,919 83,695,001 94,465,511 88,690,700
End of period common shares (basic) 94,464,343 94,464,343 94,464,343 88,685,694 85,263,608 84,864,727 83,666,942 82,690,098 88,685,694 82,690,098
End of period common shares (diluted) 94,464,343 94,464,343 94,464,343 90,555,862 89,055,609 87,520,892 86,640,003 85,976,078 90,555,862 85,976,078
1If we reported a net loss attributable to Jackson Financial Inc., all common stock equivalents are anti-dilutive and are therefore excluded from the calculation of diluted shares and diluted per share amounts. The shares excluded from the diluted EPS calculation were 3,112,052 shares and 1,868,605 shares for the three months ended December 31, 2022 and 2021, respectively. There were no dilutive shares for the three months ended September 30, 2021 and June 30, 2021.

Page 28

Jackson Financial Inc.
Quarterly Financial Supplement - LDTI Recast
Glossary of Select Financial and Product Terms
---
Assets Under Management (AUM) - Investment assets that are managed by one of our subsidiaries and includes: (i) the assets in our investment portfolio managed by PPM America, Inc. ("PPM"), which excludes assets held in funds withheld accounts for reinsurance transactions, (ii) third-party assets managed by PPM, including those for Prudential and its affiliates or third parties, and (iii) the separate account assets of our Retail Annuities segment that Jackson National Asset Management LLC ("JNAM") manages and administers.
---
Athene Reinsurance Transaction - The funds withheld coinsurance agreement with Athene on June 18, 2020, effective June 1, 2020, to reinsure a 100% quota share of a block of our in-force fixed and fixed index annuity liabilities in exchange for approximately $1.2 billion in ceding commissions.
Deferred Acquisition Cost (DAC) - Represent the incremental costs related directly to the successful acquisition of new, and certain renewal, insurance policies and annuity contracts, which are deferred on the balance sheet as an asset.
Derivative Instruments - Jackson Financial Inc.'s (JFI) business model includes the acceptance, monitoring and mitigation of risk. Specifically, JFI considers, among other factors, exposures to interest rate and equity market movements, foreign exchange rates and other asset or liability prices. JFI uses derivative instruments to mitigate or reduce these risks in accordance with established policies and goals. JFI's derivative holdings, while effective in managing defined risks, are not structured to meet accounting requirements to be designated as hedging instruments. As a result, freestanding derivatives are carried at fair value with changes recorded in net gains or losses on derivatives and investments.
Earnings per Share (EPS) - Basic earnings per share is calculated by dividing net income (loss) attributable to JFI shareholders by the weighted-average number of common shares outstanding during the period. Diluted earnings per share is calculated by dividing the net income (loss) attributable to JFI shareholders, by the weighted-average number of shares of common stock outstanding for the period, plus shares representing the dilutive effect of share-based awards.
Fixed Annuity (FA) - An annuity that guarantees a set annual rate of return with interest at rates we determine, subject to specified minimums. Credited interest rates are guaranteed not to change for certain limited periods of time.
Fixed Index Annuity (FIA) - An annuity with an ability to share in the upside from certain financial markets such as equity indices, and provides downside protection.
Guaranteed Minimum Accumulation Benefit (GMAB) - An add-on benefit (enhanced benefits available for an additional cost) which entitles an owner to a minimum payment, typically in lump-sum, after a set period of time, typically referred to as the accumulation period. The minimum payment is based on the benefit base, which could be greater than the underlying account value.
Guaranteed Minimum Death Benefit (GMDB) - An add-on benefit (enhanced benefits available for an additional cost) that guarantees an owner’s beneficiaries are entitled to a minimum payment based on the benefit base, which could be greater than the underlying account value, upon the death of the owner.
Guaranteed Minimum Income Benefit (GMIB) - An add-on benefit (available for an additional cost) where an owner is entitled to annuitize the policy and receive a minimum payment stream based on the benefit base, which could be greater than the payment stream resulting from current annuitization of the underlying account value.
Guaranteed Minimum Withdrawal Benefit (GMWB) - An add-on benefit (available for an additional cost) where an owner is entitled to withdraw a maximum amount of their benefit base each year, for which cumulative payments to the owner could be greater than the underlying account value.
Guaranteed Minimum Withdrawal Benefit for Life (GMWB for Life) - An add-on benefit (available for an additional cost) where an owner is entitled to withdraw the guaranteed annual withdrawal amount each year, for the duration of the policyholder's life, regardless of account performance.

Page 29

Jackson Financial Inc.
Quarterly Financial Supplement - LDTI Recast
Glossary of Select Financial and Product Terms
---
Net Amount at Risk (NAR) - The greater of Death Benefit NAR (DBNAR) and Living Benefit NAR (LBNAR), as applicable, where DBNAR is the GMDB benefit base in excess of the account value, and the LBNAR is the actuarial present value of guaranteed living benefits in excess of the account value.
---
Net Flows - The net change in customer account balances during a period, including gross premiums, surrenders, withdrawals and benefits. Net flows exclude investment performance, interest credited to customer accounts and policy charges.
Registered Index-Linked Annuity (RILA) - A registered index-linked annuity, which offers market index-linked investment options, subject to a cap, and offers a variety of guarantees designed to modify or limit losses.
Return of Premium (ROP) Death Benefit - This death benefit pays the greater of the account value at the time of a claim following the owner's death or the total contributions to the contract (subject to adjustment for withdrawals). The charge for this benefit is usually included in the Mortality and Expense fee that is deducted daily from the net assets in each variable investment option. We also refer to this death benefit as the Return of Principal death benefit.
Risk Based Capital (RBC) - Statutory minimum level of capital that is required by regulators for an insurer to support its operations.
Segment - Retail Annuities
JFI's Retail Annuities segment offers a variety of retirement income and savings products through its diverse suite of products, consisting primarily of variable annuities, fixed index annuities, fixed annuities, payout annuities, and registered index-linked annuities ("RILA"). These products are distributed through various wirehouses, insurance brokers and independent broker-dealers, as well as through banks and financial institutions, primarily to high net worth investors and the mass and affluent markets.
The financial results of the variable annuity business within the Company’s Retail Annuities segment are largely dependent on the performance of the contract holder account value, which impacts both the level of fees collected and the benefits paid to the contract holder. The financial results of the Company’s fixed annuities, including the fixed option on variable annuities, RILA and fixed index annuities, are largely dependent on the Company’s ability to earn a spread between earned investment rates on general account assets and the interest credited to contract holders.
Segment - Institutional Products
JFI's Institutional Products consist of traditional guaranteed investment contracts ("GICs"), funding agreements (including agreements issued in conjunction with JFI's participation in the U.S. Federal Home Loan Bank ("FHLB") program) and Medium-Term Note funding agreements. JFI's GIC products are marketed to defined contribution pension and profit-sharing retirement plans. Funding agreements are marketed to institutional investors, including corporate cash accounts and securities lending funds, as well as money market funds, and are issued to the FHLB in connection with its program.
The financial results of JFI's Institutional Products business are primarily dependent on the Company's ability to earn a spread between earned investment rates on general account assets and the interest credited on GICs and funding agreements.
Segment - Closed Life and Annuity Blocks
JFI's Closed Life and Annuity Blocks segment is primarily composed of blocks of business that have been acquired since 2004. The segment includes various protection products, primarily whole life, universal life, variable universal life, and term life insurance products, as well as fixed, fixed index, and payout annuities. The Closed Life and Annuity Blocks segment also includes a block of group payout annuities that we assumed from John Hancock Life Insurance Company (USA) and John Hancock Life Insurance Company of New York through reinsurance transactions in 2018 and 2019, respectively. The Company historically offered traditional and interest-sensitive life insurance products but discontinued new sales of life insurance products in 2012, as we believe opportunistically acquiring mature blocks of life insurance policies is a more efficient means of diversifying our in-force business than selling new life insurance products.
The profitability of JFI's Closed Life and Annuity Blocks segment is largely driven by its historical ability to appropriately price its products and purchase appropriately priced blocks of business, as realized through underwriting, expense and net gains (losses) on derivatives and investments, and the ability to earn an assumed rate of return on the assets supporting that business.
Variable Annuity (VA) - An annuity that offers tax-deferred investment into a range of asset classes and a variable return, which offers insurance features related to potential future income payments.

Page 30

Report a Problem

Category
Description
Email (optional, for follow-up)