Jackson Reports First Quarter 2013 Sales and Deposits of $6.2 Billion
Jackson Reports First Quarter 2013 Sales and Deposits of $6.2 Billion
LANSING, Mich.--(BUSINESS WIRE)-- Jackson National Life Insurance Company® (Jackson®) generated more than $6.2 billion in total sales and deposits1 during the first quarter of 2013, an increase of 6.3 percent from the first quarter of 2012. This strong performance was driven primarily by higher variable annuity (VA) sales, particularly from Elite Access®, which was introduced in March 2012. Elite Access contributed $835.6 million of sales during the period.
"Jackson has made a strong start to 2013 and the continued growth in our business is a reflection of our excellent product innovation capabilities, which enable us to offer advisors and investors a compelling range of products despite the challenges of the low interest rate environment. We continue to price all of our products conservatively to help Jackson maintain a strong capital position, which is in the best interests of all of our stakeholders," said Mike Wells, Jackson's president and chief executive officer.
Jackson, an indirect wholly owned subsidiary of the United Kingdom's Prudential plc (NYS: PUK) , recorded $835.6 million in sales of Elite Access and $3.7 billion in other VA sales during the first quarter of 2013, compared to $11.5 million and $4.4 billion, respectively, in first quarter 2012. Sales of fixed index annuities totaled $531.4 million, up from $391.7 million in first quarter 2012. First quarter 2013 fixed annuity sales were $223.3 million, compared to $255.1 million during the same period in the prior year.
In the first quarter of 2013, Jackson issued $238.7 million in institutional products, up from $118.8 million in the first quarter of 2012. Jackson participates in the institutional market (guaranteed investment contracts, medium-term notes and funding agreements) on an opportunistic basis.
Subsidiary and Affiliate Performance
Curian Capital® LLC (Curian), Jackson's asset management subsidiary that provides customized investment management products and services to financial representatives and institutional clients, continued to generate positive net flows during 2013. Deposits totaled $677.6 million during the first quarter. Assets under management in Curian's core business increased to $9.6 billion as of March 31, 2013, up from $8.9 billion at year-end 2012.
Jackson's affiliate, National Planning Holdings®, Inc. (NPH®), a network of four independent broker-dealers, reported gross product sales of $5.1 billion during the first quarter of 2013, compared to $4.2 billion in the same period of 2012, yielding IFRS2 revenue of $225.8 million and $197.0 million in the first quarters of 2013 and 2012, respectively.
"Jackson adds value to advisors and investors by providing effective retirement solutions that can be tailored to meet the needs of individuals," said Clifford Jack, executive vice president and head of retail for Jackson. "We have been particularly encouraged by the early success of Elite Access, which enables advisors to introduce alternative investments to their clients' portfolios in order to help enhance risk adjusted returns. The combination of Elite Access and Perspective II®, our more traditional variable annuity product, provides advisors with a comprehensive offering to meet the evolving needs of their client base in today's challenging macroeconomic environment."
Market Share
During full-year 2012 (the latest industry data available), Jackson ranked:
First in total annuity sales, with a market share of 10.2 percent;3
Second in VA new sales, with a market share of 13.8 percent;4
First in VA net flows;5
Sixth in total VA assets; 4
Sixth in FIA sales, with a market share of 5.1 percent;6 and
Seventh in fixed-rate deferred annuity sales with a market share of 3.6 percent.3
Financial Strength
Jackson has maintained the same financial strength ratings for more than 10 years.As of May 6, 2013, Jackson had the following ratings:7
A+ (superior) —A.M. Best financial strength rating, the second-highest of 16 rating categories;
AA (very strong) —Standard & Poor's insurer financial strength rating, the third-highest of 21 rating categories;
AA (very strong) —Fitch Ratings insurer financial strength rating, the third-highest of 19 rating categories;
A1 (good) —Moody's Investors Service, Inc. insurance financial strength rating, the fifth-highest of 21 rating categories.
1Sales and deposits from Jackson's subsidiaries, Jackson National Life Insurance Company of New York®and Curian, have been included in Jackson's total sales and deposits figure.
2International Financial Reporting Standards (IFRS) is a principles-based set of international accounting standards indicating how transactions and other events should be reported in financial statements. IFRS is issued by the International Accounting Standards Board in an effort to increase global comparability of financial statements and results. Prudential plc, the ultimate parent of Jackson and NPH, uses IFRS to report the Group's financial results.
3Source: LIMRA U.S. Individual Annuities Sales Survey, Fourth Quarter 2012 YTD. Jackson ranked first in total annuity sales out of 58 participating companies that reported sales during the period. Jackson ranked seventh in fixed-rate deferred annuity sales out of 57 participating companies that reported sales during the period. Market share calculated from LIMRA survey data.
4Source: © 2012 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.Morningstar Annuity Research Center (MARC), Fourth Quarter 2012 YTD Sales Report©. Jackson ranked second in VA sales out of 36 VA companies that reported sales during the period. Jackson ranked sixth in total VA assets out of 49 VA companies that reported assets during the period.
5Jackson ranked first in VA net flows out of 21 participating companies from the MARC Fourth Quarter 2012 YTD Net Flow Report© and one company from its quarterly financial supplements.
6Source: AnnuitySpecs Indexed Sales & Market Report Fourth Quarter 2012 YTD. Jackson ranked sixth out of 40 companies that reported sales during the period. Copyright © 2012, AnnuitySpecs.com.
7Financial strength ratings do not apply to the principal amount or investment performance of the separate account or underlying investments of variable products.
Please remember that a Jackson annuity is intended to be a long-term, tax-deferred vehicle for retirement. An annuity's earnings are taxable as ordinary income when withdrawn and, if taken before age 59 1/2, may be subject to a 10% additional tax. Variable annuities involve investment risks and may lose value.
Before investing in variable products, investors should carefully consider the investment objectives, risks, charges and expenses of the variable product and its underlying investment options.The current contract prospectus and underlying fund prospectuses, which are contained in the same document, provide this and other important information.Please contact your representative or the Company to obtain the prospectuses.Please read the prospectuses carefully before investing or sending money.
About Jackson National Life Insurance Company
Jackson is a leading provider of retirement solutions for industry professionals and their clients. The company offers a diverse range of products including variable, fixed and fixed index annuities designed for tax-efficient accumulation and distribution of retirement income for retail customers, and fixed income products for institutional investors. Jackson subsidiaries and affiliates provide specialized asset management and retail brokerage services. With $165.4 billion in assets*, Jackson prides itself on product innovation, sound corporate risk management practices and strategic technology initiatives. Focused on thought leadership and education, the company develops proprietary research, industry insights and financial representative training on retirement planning and alternative investment strategies. Jackson is also dedicated to corporate social responsibility and supports charities focused on helping children and seniors in the communities where its employees live and work. For more information, visitwww.jackson.com.
Jackson is the marketing name for Jackson National Life Insurance Company, Jackson National Life Insurance Company of New York®and Jackson National Life Distributors LLC.
*Jackson has $165.4 billion in total IFRS assets and $150.9 billion in IFRS policy liabilities primarily set aside to pay future policyowner benefits (as of 12/31/12).
Elite Access Fixed and Variable Annuity (VA650, VA 660) is issued by Jackson National Life Insurance Company (Home Office: Lansing, Michigan) and in New York (VA650NY, VA 660NY) by Jackson National Life Insurance Company of New York (Home Office: Purchase, New York). Perspective II Fixed and Variable Annuity (VA620) is issued by Jackson National Life Insurance Company (Home Office: Lansing, Michigan) and in New York (VA620NY 09/12) by Jackson National Life Insurance Company of New York (Home Office: Purchase, New York). Variable annuities are distributed by Jackson National Life Distributors LLC, member FINRA, may not be available in all states and state variations may apply. These products have limitations and restrictions, including withdrawal charges and excess interest adjustments (interest rate adjustments in New York) where applicable.
Jackson issues other variable annuities with similar features, benefits, limitations and charges. Discuss Jackson's other variable annuity options with your representative or contact Jackson for more information. Jackson is the marketing name for Jackson National Life Insurance Company and Jackson National Life Insurance Company of New York.
Annuities are issued by Jackson National Life Insurance Company (Home Office: Lansing, Michigan) and Jackson National Life Insurance Company of New York (Home Office: Purchase, New York). Contact your representative or the Company for more information.
Jackson National Life Insurance Company is an indirect subsidiary of Prudential plc, a company incorporated in England and Wales. Prudential plc and its affiliated companies constitute one of the world's leading financial services groups. It has been in existence for 165 years and has $658.3 billion in assets under management (as of December 31, 2012). Prudential plc is not affiliated in any manner with Prudential Financial, Inc., a company whose principal place of business is in the United States of America.
The following cautionary statement is included to make applicable and take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 for any forward-looking statements made by, or on behalf of, Jackson National Life Insurance Company. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements which are other than statements of historical facts. However, as with any projection or forecast, forward-looking statements are inherently susceptible to a number of risks and uncertainties and actual results and events could differ materially from those currently being anticipated as reflected in such forward-looking statements. There can be no assurance that management's expectations, beliefs or projections will result or be achieved or accomplished.
Jackson National Life Insurance Company
Corporate Communications
Kim Isaacson
Director, Financial Communications & Social Media
Phone: 800-565-9044 x24292
Email: kim.isaacson@jackson.com
KEYWORDS: United States North America Illinois
INDUSTRY KEYWORDS:
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