Jackson Announces Excellent Fourth Quarter and Full Year 2025 Results

Jackson Announces Excellent Fourth Quarter and Full Year 2025 Results 02/18/2026 Jackson Financial Inc. (NYSE: JXN) (Jackson®) today announced its financial results for the fourth quarter and full year ended December 31, 2025. Fourth Quarter 2025 Key Highlights Record retail annuity sales 1 of $5.9 billion in the fourth quarter of 2025, up 27% from the fourth quarter of 2024, reflecting continued strong demand across our product suiteVariable annuity sales 1 of $2.8 billion were up 1% from the fourth quarter of 2024, reflecting higher sales of products without lifetime benefitsRecord registered index-linked annuity (RILA) sales of $2.3 billion were up 53% from the fourth quarter of 2024Fixed and fixed index annuity sales of $812 million were up 105% from the fourth quarter of 2024, driven by Jackson Income Assurance℠, our recently launched fixed index annuityNet income (loss) attributable to Jackson Financial Inc. common shareholders of $(215) million, or $(3.13) per diluted share in the fourth quarter of 2025, compared to $334 million, or $4.45 per diluted share in the fourth quarter of 2024Adjusted operating earnings 2 of $455 million, or a record $6.61 per diluted share in the fourth quarter of 2025, compared to $349 million, or $4.65 per diluted share in the fourth quarter of 2024, primarily reflecting higher spread income from growth in average RILA and Institutional assets under management (AUM), a comparatively favorable impact from the annual actuarial assumptions update, and a reduced share count due to repurchasesJackson (parent company only) net cash provided by (used in) operating activities of $(15) million in the fourth quarter of 2025Free cash flow 2 in the fourth quarter of 2025 of $119 million reflecting distributions from our operating company of $300 million and initial funding of our new captiveReturned $205 million to common shareholders in the fourth quarter of 2025 through $150 million of common share repurchases and $55 million in common dividends Full Year 2025 Key Highlights Record retail annuity sales 1 of $19.7 billion in 2025, up 10% from 2024, reflecting continued strong demand across our product suiteVariable annuity sales 1 of $10.9 billion in 2025, up 3% from 2024, reflecting higher sales of products without lifetime benefitsRecord RILA sales of $6.9 billion in 2025, up 22% from 2024Record fixed and fixed index annuity sales of $1.9 billion in 2025, up 18% from 2024, driven by Jackson Income Assurance℠, our recently launched fixed index annuityRecord Institutional sales of $3.5 billion in 2025 were up 77% compared to 2024Robust sales for spread products are supported by capabilities added at PPM America, Inc. (PPM), our asset management subsidiary, to source higher yielding assets. These sales, combined with a focus on growing third-party business, contributed to a 26% increase in PPM AUM from the end of 2024.Net income (loss) attributable to Jackson Financial Inc. common shareholders of $(17) million, or $(0.24) per diluted share in 2025, compared to $902 million, or $11.74 per diluted share in 2024Adjusted operating earnings 3 of $1.6 billion, or $22.67 per diluted share in 2025, compared to $1.4 billion, or $18.79 per diluted share in 2024, primarily reflecting higher spread income from growth in average RILA AUM, a comparatively favorable impact from the annual actuarial assumptions update, and a reduced share count due to repurchasesRobust capital position at the operating company, with total adjusted capital of more than $5.5 billion as of December 31, 2025, and a risk-based capital (RBC) ratio at Jackson National Life Insurance Company (JNL) of 567%Jackson (parent company only) net cash provided by (used in) operating activities of $12 million in 2025Free cash flow 3 in 2025 of $838 million reflecting distributions from our operating company of over $1.1 billion and initial funding of our new captiveExceeded capital return target by returning $862 million to common shareholders in 2025 through $634 million of common share repurchases and $228 million in common dividends. Capital return in 2025 totaled $12.11 per diluted share, up 47% from 2024.Cash and highly liquid securities at the holding company of more than $650 million as of December 31, 2025, which was above Jackson’s targeted $250 million minimum liquidity buffer 2026 Announcements Increased first quarter 2026 common dividend by 12.5% to $0.90 per shareEstablished a 2026 capital return to common shareholders target of $900 million to $1.1 billion Laura Prieskorn, President and Chief Executive Officer of Jackson, stated, “2025 was a monumental year for Jackson, with our results highlighting success and growth across our business. Our full-year retail annuity sales delivered double-digit growth and a more diversified product mix, highlighting our distribution strength and operational capabilities. We have exceeded our financial targets by returning $862 million to common shareholders in 2025, ending the year with an RBC ratio of 567%, and holding robust levels of excess cash at the holding company. Furthermore, our recently announced long-term strategic partnership with TPG, along with enhanced capabilities at PPM, position us well to continue to grow and diversify our in-force business in a highly profitable way. These results give us confidence in our $900 million to $1.1 billion capital return target for 2026, and we look forward to continuing to deliver on our commitment to helping Americans achieve financial security.” Consolidated Fourth Quarter and Full Year 2025 Results Fourth Quarter 2025 The Company reported net income (loss) attributable to Jackson Financial Inc. common shareholders of $(215) million, or $(3.13) per diluted share for the three months ended December 31, 2025, compared to $334 million, or $4.45 per diluted share for the three months ended December 31, 2024. The current quarter net income reflected a $12 million loss from business reinsured to third parties, while the prior year reported a gain of $347 million. The current year also included a less favorable net hedging result versus the prior year’s fourth quarter. The results of reinsured business can differ significantly from quarter to quarter; however, these results do not impact our statutory capital or free cash flow and have a minimal net impact on shareholders’ equity because of the offset from related changes in accumulated other comprehensive income (AOCI). We believe the non-GAAP measure of adjusted operating earnings better represents the underlying performance of our business as adjusted operating earnings exclude, among other things, changes in the fair value of derivative instruments and market risk benefits tied to market movements. Adjusted operating earnings for the three months ended December 31, 2025, were $455 million, or $6.61 per diluted share, compared to $349 million or $4.65 per diluted share for the three months ended December 31, 2024. The current quarter per share amount benefited from higher spread income from growth in average RILA and Institutional AUM, a comparatively favorable impact from the annual actuarial assumptions update, and a reduced share count due to repurchases. Full Year 2025 The Company reported net income (loss) attributable to Jackson Financial Inc. common shareholders of $(17) million, or $(0.24) per diluted share for the year ended December 31, 2025, compared to $902 million, or $11.74 per diluted share for the year ended December 31, 2024. The current year net income reflected a $449 million loss from business reinsured to third parties, while the prior year included a loss on that business of $28 million. The current year also included a less favorable net hedging result compared to the prior year. Adjusted operating earnings for the year ended December 31, 2025, were $1.6 billion, or $22.67 per diluted share, compared to $1.4 billion or $18.79 per diluted share for the year ended December 31, 2024. The current year per share amount benefited from higher spread income from growth in average RILA and Institutional AUM, a comparatively favorable impact from the annual actuarial assumptions update, and a reduced share count due to repurchases. Total common shareholders’ equity was $9.4 billion or $138.17 per diluted share as of December 31, 2025, compared to $9.2 billion or $124.21 per diluted share as of December 31, 2024. Adjusted book value attributed to common shareholders4 was $10.6 billion or $155.78 per diluted share as of December 31, 2025, compared to $11.2 billion or $150.11 per diluted share as of December 31, 2024. The per share increase was driven primarily by a reduction in the diluted share count due to common share repurchases and year-to-date adjusted operating earnings of $1.6 billion. This was partially offset by capital return to shareholders during 2025. Return on equity attributable to common shareholders for the year ended December 31, 2025 was (0.2)%. Adjusted operating return on equity attributable to common shareholders4 for the year ended December 31, 2025, was 14.7%, up from 12.9% in the prior year. Segment Results – Pretax Adjusted Operating Earnings4 Three Months Ended Twelve Months Ended (in millions) December 31, 2025 December 31, 2024 December 31, 2025 December 31, 2024 Retail Annuities $532 $513 $1,863 $1,855 Institutional Products 24 19 92 96 Closed Life and Annuity Blocks 5 (70) 70 (9) Corporate and Other (32) (57) (143) (264) Total5 $529 $405 $1,882 $1,678 Retail Annuities Retail Annuities reported pretax adjusted operating earnings of $532 million in the fourth quarter of 2025, compared to $513 million in the fourth quarter of 2024. The current quarter results primarily reflect higher spread income resulting from growth in average RILA AUM, partially offset by a less favorable impact from the annual actuarial assumptions update. Full year 2025 pretax adjusted operating earnings were $1.9 billion, broadly unchanged from full year 2024. The current year results primarily reflect higher spread income resulting from growth in average RILA AUM, mostly offset by higher other policyholder benefits expense and a less favorable impact from the annual actuarial assumptions update. Total retail annuity sales6 of $5.9 billion in the fourth quarter of 2025 were up from $4.7 billion in the fourth quarter of 2024. Traditional variable annuity sales6 of $2.8 billion in the current quarter were up slightly from the fourth quarter of 2024, reflecting higher sales of products without lifetime benefits. Record RILA sales of $2.3 billion in the current quarter were up from $1.5 billion in the fourth quarter of 2024. Fixed and fixed index annuity sales in the current quarter of $812 million were up from $397 million in the fourth quarter of 2024. For the full year 2025, total retail annuity sales6 of $19.7 billion were up from $17.8 billion in the full year 2024. Traditional variable annuity sales6 of $10.9 billion in 2025 were up from $10.6 billion in 2024, reflecting higher sales of products without lifetime benefits. Record RILA sales of $6.9 billion in 2025 were up from $5.7 billion in 2024. Record fixed and fixed index annuity sales of $1.9 billion in 2025 were up from $1.6 billion in 2024. Institutional Products Institutional Products reported pretax adjusted operating earnings of $24 million in the fourth quarter of 2025, compared to $19 million in the fourth quarter of 2024, driven by higher spread income. Net flows were $(109) million at the end of the current quarter, and total account value of $11.0 billion at the end of 2025 was up from $8.4 billion at the end of 2024. For the full year 2025, pretax adjusted operating earnings were $92 million, relatively flat compared to $96 million in the full year 2024. Net flows were $1.5 billion in the full year 2025. Sales results underscore our continued ability to capitalize on robust demand for spread lending, demonstrating the effectiveness of our opportunistic sales strategy and our strong market positioning. Closed Life and Annuity Blocks Closed Life and Annuity Blocks reported pretax adjusted operating income (loss) of $5 million in the fourth quarter of 2025, compared to $(70) million in the fourth quarter of 2024, reflecting a comparatively favorable impact from the annual actuarial assumptions update. For the full year 2025, the segment reported pretax adjusted operating income (loss) of $70 million, compared to $(9) million in the full year of 2024, reflecting higher spread income and a comparatively favorable impact from the annual actuarial assumptions update. Net flows were $(69) million in the fourth quarter of 2025 and $(277) million in the full year 2025. Corporate and Other Corporate and Other reported a pretax adjusted operating (loss) of $(32) million in the fourth quarter of 2025, compared to $(57) million in the fourth quarter of 2024, primarily due to higher net investment income and lower general and administrative expense. For the full year 2025, the pretax adjusted operating income (loss) was $(143) million, compared to $(264) million in full year 2024, primarily due to lower general and administrative expense, higher net investment income, and a one-time reinsurance related adjustment in 2024. Corporate and Other also includes the results of PPM, which has experienced a 26% growth in AUM from the fourth quarter of 2024. AUM as of December 31, 2025 was $93.7 billion, up from $74.4 billion as of December 31, 2024, driven by growth in both Jackson’s general account and third-party AUM. Capitalization and Liquidity (Unaudited, in billions) December 31, 2025 September 30, 2025 Statutory Total Adjusted Capital (TAC) Jackson National Life Insurance Company $5.5 $5.6 Statutory TAC at JNL was $5.5 billion as of December 31, 2025, compared to $5.6 billion as of September 30, 2025. TAC was supported by strong earnings on in-force business, partially offset by a $300 million distribution to JNL’s parent during the fourth quarter of 2025 and the related reduction in deferred tax asset admissibility. JNL’s RBC ratio was 567% as of December 31, 2025, down from the third quarter of 2025 due to the reduction in TAC. Holding company free cash flow totaled $119 million in the fourth quarter of 2025 and $838 million for the 12 months ended December 31, 2025, reflecting more than $1.1 billion of distributions from the operating company. Cash and highly liquid securities at the holding company totaled over $650 million as of December 31, 2025, which was above our targeted minimum liquidity buffer of $250 million. Earnings Conference Call Jackson will host a conference call on Thursday, February 19, 2026, at 10 a.m. ET to review the fourth quarter and full year 2025 results and discuss the company’s 2026 outlook. The live webcast is open to the public and can be accessed at https://investors.jackson.com. A replay will be available following the call. To register for the webcast, click here. FORWARD-LOOKING STATEMENTS The information in this press release contains forward-looking statements about future events and circumstances and their effects upon revenues, expenses and business opportunities. Generally speaking, any statement in this release 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,” “expect,” “believe,” “anticipate,” “plan,” “predict,” “remain,” “future,” “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. Other factors that could cause actual results to differ materially from those in the forward-looking statements include those reflected in Part I, Item 1A. Risk Factors and Part II, Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for the year ended December 31, 2024, as filed with the U.S. Securities and Exchange Commission (the SEC) on February 26, 2025, and elsewhere in the Company’s reports filed with the SEC. 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 release 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 release. 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” Appendix of this release. Certain financial data included in this release consists of statutory accounting principles (“statutory”) financial measures, including “total adjusted capital.” 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 investors.jackson.com/financials/statutory-filings. ABOUT JACKSON Jackson® (NYSE: JXN) is committed to helping clarify the complexity of retirement planning—for financial professionals and their clients. Through our range of annuity products, financial know-how, history of award-winning service* and streamlined experiences, we strive to reduce the confusion that complicates retirement planning. We take a balanced, long-term approach to responsibly serving all our stakeholders, including customers, shareholders, distribution partners, employees, regulators and community partners. We believe by providing clarity for all today, we can help drive better outcomes for tomorrow. For more information, visit www.jackson.com. *SQM (Service Quality Measurement Group) Call Center Awards Program for 2004 and 2006-2025. (Criteria used for Call Center World Class FCR Certification is 80% or higher of customers getting their contact resolved on the first call to the call center (FCR) for 3 consecutive months or more.) Jackson® is the marketing name for Jackson Financial Inc., Jackson National Life Insurance Company® (Home Office: Lansing, Michigan) and Jackson National Life Insurance Company of New York® (Home Office: Purchase, New York). WEBSITE INFORMATION Visit investors.jackson.com to view information regarding Jackson Financial Inc., including a supplement regarding the fourth quarter and full year 2025 results. We routinely use our investor relations website as a primary channel for disclosing key information to our investors. We may use our website as a means of disclosing material, non-public information and for complying with our disclosure obligations. Accordingly, investors should monitor our investor relations website, in addition to following our press releases, filings with the SEC, public conference calls, presentations, and webcasts. We and certain of our senior executives may also use social media channels to communicate with our investors and the public about our Company and other matters, and those communications could be deemed to be material information. The information contained on, or that may be accessed through, our website, our social media channels, or our executives’ social media channels is not incorporated by reference into and is not part of this release. APPENDIX 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 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. 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. Free Cash Flow Free cash flow is Jackson Financial Inc. (Parent Company only) net cash provided by (used in) operating activities less preferred stock dividends and capital contributions to PPM or other subsidiaries, plus the return of capital from subsidiaries. Free cash flow should not be used as a substitute for JFI’s (Parent Company only) net cash provided by (used in) operating activities calculated in accordance with U.S. GAAP. However, we believe these adjustments are useful to gaining an understanding of our overall available cash flow at JFI for return of capital to common shareholders and other corporate initiatives. For additional detail on the non-GAAP financial measures, please refer to the supplement regarding the fourth quarter ended December 31, 2025, posted on our website, https://investors.jackson.com. The following is a reconciliation of Adjusted Operating Earnings to net income (loss) attributable to Jackson Financial Inc. common shareholders, the most comparable U.S. GAAP measure. U.S. GAAP Net Income (Loss) to Adjusted Operating Earnings Three Months Ended Twelve Months Ended (in millions, except share and per share data) December 31, 2025 December 31, 2024 December 31, 2025 December 31, 2024 Net income (loss) attributable to Jackson Financial Inc. common shareholders $ (215 ) $ 334 $ (17 ) $ 902 Add: dividends on preferred stock 11 11 44 44 Add: income tax expense (benefit) (172 ) 22 (186 ) 46 Pretax income (loss) attributable to Jackson Financial Inc. (376 ) 367 (159 ) 992 Non-operating adjustments – (income) loss: Guaranteed benefits and hedging results: Fees attributable to guarantee benefit reserves (763 ) (775 ) (3,060 ) (3,122 ) Net (gains) losses on hedging instruments 370 2,788 1,213 5,856 Market risk benefits (gains) losses, net 405 (2,181 ) 222 (4,243 ) Net reserve and embedded derivative movements 393 89 2,286 1,224 Total net hedging results 405 (79 ) 661 (285 ) Amortization of DAC associated with non-operating items at date of transition to LDTI1 123 131 503 541 Actuarial assumption updates and model enhancements 360 419 360 419 Net realized investment (gains) losses 7 (71 ) 44 11 Net realized investment (gains) losses on funds withheld assets 210 (147 ) 1,304 1,052 Net investment income on funds withheld assets (198 ) (200 ) (855 ) (1,024 ) Other items (2 ) (15 ) 24 (28 ) Total non-operating adjustments 905 38 2,041 686 Pretax adjusted operating earnings 529 405 1,882 1,678 Less: operating income tax expense (benefit) 63 45 224 191 Adjusted operating earnings before dividends on preferred stock 466 360 1,658 1,487 Less: dividends on preferred stock 11 11 44 44 Adjusted operating earnings $ 455 $ 349 $ 1,614 $ 1,443 Weighted Average diluted shares outstanding 68,874,062 75,128,975 71,186,069 76,809,387 Net income (loss) per diluted share $ (3.13 ) $ 4.45 $ (0.24 ) $ 11.74 Adjusted Operating Earnings per diluted share $ 6.61 $ 4.65 $ 22.67 $ 18.79 1LDTI - Adoption of FASB issued ASU 2018-12 “Targeted Improvements to the Accounting for Long Duration Contracts”. The following is a reconciliation of Jackson Financial net cash provided by (used in) operating activities (Parent Company only), the most comparable U.S. GAAP measure, to Free Cash Flow: Three Months Ended Twelve Months Ended (in millions) December 31, 2025 December 31, 2024 December 31, 2025 December 31, 2024 Jackson Financial, Inc. Net cash provided by (used in) operating activities (Parent Company Only) $ (15 ) $ (4 ) $ 12 $ 51 Adjustments from net cash provided by operating activities to free cash flow: Capital distributions from subsidiaries 300 280 1,025 785 Capital contributed to subsidiaries (155 ) (25 ) (155 ) (25 ) Dividends on preferred stock (11 ) (11 ) (44 ) (44 ) Total adjustments 134 244 826 716 Free cash flow $ 119 $ 240 $ 838 $ 767 Free Cash Flow Comprised of: Capital distributions from subsidiaries 300 280 1,025 785 Interest on surplus note from subsidiary — — 90 90 Cash distributed to JFI 300 280 1,115 875 Capital contributed to Hickory Re (150 ) — (150 ) — Parent company expenses (29 ) (44 ) (119 ) (124 ) Net investment income and other income 6 8 28 24 Other, net (8 ) (4 ) (36 ) (8 ) JFI expenses and other, net (31 ) (40 ) (127 ) (108 ) Free cash flow $ 119 $ 240 $ 838 $ 767 Adjusted Book Value Attributable to Common Shareholders Adjusted Book Value Attributable to Common Shareholders excludes Preferred Stock and Accumulated Other Comprehensive Income (Loss) (AOCI) attributable to Jackson Financial Inc (JFI), which does not include 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 Attributable to Common Shareholders 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 because it removes those short-term fluctuations. Changes in AOCI within the funds withheld account related to the Athene Reinsurance Transaction offset the related non-operating earnings from the Athene Reinsurance Transaction resulting in a minimal net impact on the Adjusted Book Value of JFI. (in millions) December 31, 2025 December 31, 2024 Total shareholders’ equity $ 9,953 $ 9,764 Less: Preferred equity 533 533 Total common shareholders’ equity 9,420 9,231 Adjustments to total common shareholders’ equity: Exclude Accumulated Other Comprehensive (Income) Loss attributable to Jackson Financial Inc. 1,201 1,925 Adjusted Book Value Attributable to Common Shareholders $ 10,621 $ 11,156 Consolidated Balance Sheets December 31, December 31, 2025 2024 (in millions, except share and per share data) Assets Investments: Debt Securities, available-for-sale, net of allowance for credit losses of $11 and $39 at December 31, 2025 and 2024, respectively (amortized cost: 2025 $50,491; 2024 $45,007) $ 47,321 $ 40,289 Debt Securities, at fair value under fair value option 3,470 3,046 Equity securities, at fair value 172 197 Mortgage loans, net of allowance for credit losses of $133 and $121 at December 31, 2025 and 2024, respectively 9,887 9,462 Mortgage loans, at fair value under fair value option 324 449 Policy loans (including $3,537 and $3,489 at fair value under the fair value option at December 31, 2025 and 2024, respectively) 4,426 4,403 Freestanding derivative instruments 448 297 Other invested assets 3,185 2,864 Total investments 69,233 61,007 Cash and cash equivalents 5,704 3,767 Accrued investment income 634 529 Deferred acquisition costs 11,660 11,887 Reinsurance recoverable, net of allowance for credit losses of $30 and $27 at December 31, 2025 and 2024, respectively 19,518 21,830 Reinsurance recoverable on market risk benefits, at fair value 118 121 Market risk benefit assets, at fair value 7,867 8,899 Deferred income taxes, net 719 480 Other assets 637 787 Separate account assets 236,496 229,143 Total assets $ 352,586 $ 338,450 Consolidated Balance Sheets December 31, December 31, 2025 2024 (in millions, except share and per share data) Liabilities and Equity Liabilities Reserves for future policy benefits and claims payable $ 10,896 $ 11,072 Other contract holder funds 67,663 58,312 Market risk benefit liabilities, at fair value 3,754 3,774 Funds withheld payable under reinsurance treaties (including $3,723 and $3,667 at fair value under the fair value option at December 31, 2025 and 2024, respectively) 14,960 16,742 Long-term debt 2,030 2,034 Repurchase agreements and securities lending payable 1,036 1,554 Collateral payable for derivative instruments 58 150 Freestanding derivative instruments 257 361 Notes issued by consolidated variable interest entities, at fair value under fair value option 2,578 2,343 Other liabilities 2,516 2,983 Separate account liabilities 236,496 229,143 Total liabilities 342,244 328,468 Equity Series A non-cumulative preferred stock and additional paid in capital, $1.00 par value per share: 24,000 shares authorized; 22,000 shares issued and outstanding at December 31, 2025 and December 31, 2024; liquidation preference $25,000 per share 533 533 Common stock; 1,000,000,000 shares authorized, $0.01 par value per share and 66,825,632 and 73,380,643 shares issued and outstanding at December 31, 2025 and December 31, 2024, respectively 1 1 Additional paid-in capital 6,063 6,046 Treasury stock, at cost; 27,662,683 and 21,107,672 shares at December 31, 2025 and 2024, respectively (1,645 ) (1,007 ) Accumulated other comprehensive income (loss), net of tax expense (benefit) of $(377) in 2025 and $(311) in 2024 (2,470 ) (3,522 ) Retained earnings 7,471 7,713 Total shareholders' equity 9,953 9,764 Noncontrolling interests 389 218 Total equity 10,342 9,982 Total liabilities and equity 352,586 338,450 Consolidated Income Statements Three Months Ended December 31, Twelve Months Ended December 31, (in millions, except per share data) 2025 2024 2025 2024 Revenues Fee income $ 2,030 $ 2,045 $ 7,983 $ 8,083 Premiums 38 40 149 146 Net investment income: Net investment income excluding funds withheld assets 624 454 2,296 1,838 Net investment income on funds withheld assets 198 200 855 1,024 Total net investment income 822 654 3,151 2,862 Net gains (losses) on derivatives and investments: Net gains (losses) on derivatives and investments (708 ) (2,680 ) (3,357 ) (6,812 ) Net gains (losses) on funds withheld reinsurance treaties (210 ) 147 (1,304 ) (1,052 ) Total net gains (losses) on derivatives and investments (918 ) (2,533 ) (4,661 ) (7,864 ) Other income 16 19 61 44 Total revenues 1,988 225 6,683 3,271 Benefits and Expenses Death, other policy benefits and change in policy reserves, net of deferrals 197 229 927 868 (Gain) loss from updating future policy benefits cash flow assumptions, net 7 53 44 46 Market risk benefits (gains) losses, net 788 (1,747 ) 605 (3,809 ) Interest credited on other contract holder funds, net of deferrals and amortization 325 289 1,221 1,110 Interest expense 25 25 100 101 Operating costs and other expenses, net of deferrals 725 720 2,797 2,825 Amortization of deferred acquisition costs 279 276 1,103 1,108 Total benefits and expenses 2,346 (155 ) 6,797 2,249 Pretax income (loss) (358 ) 380 (114 ) 1,022 Income tax expense (benefit) (172 ) 22 (186 ) 46 Net income (loss) (186 ) 358 72 976 Less: Net income (loss) attributable to noncontrolling interests 18 13 45 30 Net income (loss) attributable to Jackson Financial Inc. (204 ) 345 27 946 Less: Dividends on preferred stock 11 11 44 44 Net income (loss) attributable to Jackson Financial Inc. common shareholders $ (215 ) $ 334 $ (17 ) $ 902 Earnings per share Basic $ (3.13 ) $ 4.50 $ (0.24 ) $ 11.86 Diluted1 $ (3.13 ) $ 4.45 $ (0.24 ) $ 11.74 (1) 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 273,162 shares for the three months ended December 31, 2025. 1 Excludes certain internal exchanges 2 For the reconciliation of non-GAAP measures to the most comparable U.S. GAAP measures, please see the explanation of Non-GAAP Financial Measures in the Appendix to this release. 3 For the reconciliation of non-GAAP measures to the most comparable U.S. GAAP measures, please see the explanation of Non-GAAP Financial Measures in the Appendix to this release. 4 For the reconciliation of non-GAAP measures to the most comparable U.S. GAAP measures, please see the explanation of Non-GAAP Financial Measures in the Appendix to this release. 5 See reconciliation of Total Pretax Adjusted Operating Earnings, a non-GAAP financial measure, to net income in the Appendix to this release. 6 Excludes certain internal exchanges Source: Jackson Financial Inc.