Jackson Financial Inc.JXN
Jackson Financial Inc. Segments Disclosure
Segment Information
The Company has three reportable segments: Retail Annuities, Institutional Products, and Closed Life and Annuity Blocks. The Company reports, in Corporate and Other, certain activities and items that are not included in these reportable segments, including the results of PPM Holdings, Inc., the holding company of PPM, which manages the majority of the Company’s general account investment portfolio. The reportable segments reflect how the Company’s chief operating decision maker (the "CODM") views and manages the business. The Company’s CODM function is performed jointly by the Chief Executive Officer and the Chief Financial Officer. For the Retail Annuities, Closed Life and Annuity Blocks, and Institutional Products segments, the CODM uses segment pretax adjusted operating earnings to allocate resources for each segment, predominantly through the annual budget and forecasting process, and to assess the performance of each segment, primarily by comparing the results of each segment with one another, with planned and forecasted results, and with comparative prior period results. The following is a brief description of the Company’s reportable segments, plus its Corporate and Other segment.
Retail Annuities
The Company’s Retail Annuities segment offers a variety of retirement income and savings products through its diverse suite of products, consisting primarily of variable annuities, registered index-linked annuities ("RILA"), fixed annuities, fixed index annuities, and payout annuities. These products are distributed through various wirehouses, insurance brokers and independent broker-dealers, as well as through banks and financial institutions.
The Company’s variable annuities represent an attractive option for retirees and soon-to-be retirees, providing access to equity market appreciation and add-on benefits, including guaranteed lifetime income. A RILA offers customers access to market returns through market index-linked investment options, subject to a cap, and offers a variety of features designed to modify or limit losses. A fixed index annuity is designed for investors who desire principal protection with the opportunity to participate in capped upside investment returns linked to a reference market index. A fixed annuity is a guaranteed product designed to build wealth without market exposure, through a crediting rate that is likely to be superior to interest rates offered by banks or money market funds.
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, fixed index annuities, RILA and the fixed option on variable 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.
Institutional Products
The Company’s Institutional Products segment consists of traditional guaranteed investment contracts ("GICs") and funding agreements. The Company’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. Funding agreements are also issued in conjunction with the Company's participation in the U.S. Federal Home Loan Bank ("FHLB") program.
The financial results of the Company’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.
Closed Life and Annuity Blocks
The Company's Closed Life and Annuity Blocks segment is primarily composed of blocks of business that have been acquired since 2004. This 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 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 the Company’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.
Corporate and Other
The Company’s Corporate and Other segment primarily consists of the operations of its investment management subsidiary, PPM, VIEs, and unallocated corporate income and expenses. The Corporate and Other segment also includes intersegment eliminations and consolidation adjustments.
Segment Performance Measurement
Segment operating revenues and pretax adjusted operating earnings are non-GAAP financial measures that management believes are critical to the evaluation of the financial performance of the Company’s segments. The Company uses the same accounting policies and procedures to measure segment pretax adjusted operating earnings as used in its reporting of consolidated net income. Its primary measure is pretax adjusted operating earnings, which is defined as net income reported in accordance with U.S. GAAP, 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 are not considered drivers of underlying performance. Operating revenues and pretax adjusted operating earnings should not be used as a substitute for revenues and net income, respectively, as calculated in accordance with U.S. GAAP.
Pretax adjusted operating earnings equals net income adjusted to eliminate the impact of the items described in the following numbered paragraphs. 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 these exclusions provide investors a better picture of the drivers of our underlying performance.
1. Net Hedging Results: Comprised of: (i) fees attributed to guaranteed benefits; (ii) net gains (losses) on hedging instruments that includes: (a) changes in the fair value of freestanding derivatives, and related commissions and expenses, used to manage the risk associated with market risk benefits and other guaranteed benefit features, excluding earned income from periodic settlements and changes in settlement accruals on cross-currency swaps; and (b) investment income and change in fair value of certain non-derivative assets used to manage the risk associated with market risk benefits and other guaranteed benefit features; and (iii) the movements in reserves, market risk benefits, guaranteed benefit features accounted for as embedded derivative instruments, and related claims and benefit payments (excluding impacts of actuarial assumption updates and model enhancements). We believe excluding these items removes the impact to both revenue and related expenses associated with Net Hedging Results.
2. Amortization of DAC Associated with Non-operating Items at Date of Transition to LDTI: Amortization of the balance of unamortized deferred acquisition costs ("DAC"), at January 1, 2021, the date of transition to current Long Duration Targeted Improvements ("LDTI") accounting guidance, associated with items excluded from pretax adjusted operating earnings prior to transition.
3. Actuarial Assumption Updates and Model Enhancements: The impact on the valuation of market risk benefits and embedded derivatives arising from our annual actuarial assumption updates and model enhancements review.
4. 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; (ii) impairments of securities, after adjustment for the non-credit component of the impairment charges; and (iii) foreign currency gain or loss on foreign denominated funding agreements and associated cross-currency swaps.
5. 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.
6. 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; (ii) impacts from derivatives not included in Net Hedging Results or Net Realized Investment Gains or Losses (see 1. and 4. above), excluding earned income from periodic settlements and changes in settlement accruals on cross-currency swaps; and (iii) one-time or other non-recurring items.
7. Income Taxes.
Set forth in the tables below is certain information with respect to the Company’s segments (in millions):
| For the Year Ended December 31, 2025 | Retail Annuities | Institutional Products | Closed Life and Annuity Blocks | Corporate and Other | Total Consolidated | ||||||||||||
| Operating Revenues | |||||||||||||||||
| Fee income | $ | 4,448 | $ | — | $ | 422 | $ | 44 | $ | 4,914 | |||||||
| Premiums | 67 | — | 91 | — | 158 | ||||||||||||
| Net investment income | 935 | 535 | 724 | 38 | 2,232 | ||||||||||||
| Other income (loss) | 28 | — | 23 | 10 | 61 | ||||||||||||
| Total Operating Revenues | 5,478 | 535 | 1,260 | 92 | 7,365 | ||||||||||||
| Operating Benefits and Expenses | |||||||||||||||||
| Death, other policy benefits and change in policy reserves, net of deferrals | 111 | — | 610 | — | 721 | ||||||||||||
| (Gain) loss from updating future policy benefits cash flow assumptions, net | (20) | — | 64 | — | 44 | ||||||||||||
Interest credited on other contract holder funds, net of deferrals and amortization | 420 | 438 | 363 | — | 1,221 | ||||||||||||
| Interest expense | 22 | — | — | 78 | 100 | ||||||||||||
| Asset-based commission expenses | 1,153 | — | — | — | 1,153 | ||||||||||||
| Other commission expenses | 1,111 | — | 33 | — | 1,144 | ||||||||||||
| Sub-advisor expenses | 316 | — | — | (7) | 309 | ||||||||||||
| General and administrative expenses | 786 | 5 | 112 | 164 | 1,067 | ||||||||||||
| Deferral of acquisition costs | (876) | — | — | — | (876) | ||||||||||||
| Amortization of deferred acquisition costs | 592 | — | 8 | — | 600 | ||||||||||||
| Total Operating Benefits and Expenses | 3,615 | 443 | 1,190 | 235 | 5,483 | ||||||||||||
| Pretax Adjusted Operating Earnings | $ | 1,863 | $ | 92 | $ | 70 | $ | (143) | $ | 1,882 | |||||||
| For the Year Ended December 31, 2024 | Retail Annuities | Institutional Products | Closed Life and Annuity Blocks | Corporate and Other | Total Consolidated | ||||||||||||
| Operating Revenues | |||||||||||||||||
| Fee income | $ | 4,460 | $ | — | $ | 443 | $ | 49 | $ | 4,952 | |||||||
| Premiums | 52 | — | 103 | — | 155 | ||||||||||||
| Net investment income | 725 | 438 | 659 | (2) | 1,820 | ||||||||||||
| Other income (loss) | 32 | — | 31 | (19) | 44 | ||||||||||||
| Total Operating Revenues | 5,269 | 438 | 1,236 | 28 | 6,971 | ||||||||||||
| Operating Benefits and Expenses | |||||||||||||||||
| Death, other policy benefits and change in policy reserves, net of deferrals | 67 | — | 573 | — | 640 | ||||||||||||
| (Gain) loss from updating future policy benefits cash flow assumptions, net | (54) | — | 104 | — | 50 | ||||||||||||
| Interest credited on other contract holder funds, net of deferrals and amortization | 362 | 338 | 410 | — | 1,110 | ||||||||||||
| Interest expense | 23 | — | — | 78 | 101 | ||||||||||||
| Asset-based commission expenses | 1,137 | — | — | — | 1,137 | ||||||||||||
| Other commission expenses | 891 | — | 37 | — | 928 | ||||||||||||
| Sub-advisor expenses | 334 | — | — | (8) | 326 | ||||||||||||
| General and administrative expenses | 788 | 4 | 106 | 222 | 1,120 | ||||||||||||
| Deferral of acquisition costs | (693) | — | 7 | — | (686) | ||||||||||||
| Amortization of deferred acquisition costs | 559 | — | 8 | — | 567 | ||||||||||||
| Total Operating Benefits and Expenses | 3,414 | 342 | 1,245 | 292 | 5,293 | ||||||||||||
| Pretax Adjusted Operating Earnings | $ | 1,855 | $ | 96 | $ | (9) | $ | (264) | $ | 1,678 | |||||||
| For the Year Ended December 31, 2023 | Retail Annuities | Institutional Products | Closed Life and Annuity Blocks | Corporate and Other | Total Consolidated | ||||||||||||
| Operating Revenues | |||||||||||||||||
| Fee income | $ | 4,036 | $ | — | $ | 457 | $ | 52 | $ | 4,545 | |||||||
| Premiums | 21 | — | 136 | — | 157 | ||||||||||||
| Net investment income | 436 | 408 | 644 | 58 | 1,546 | ||||||||||||
| Other income (loss) | 37 | — | 25 | 5 | 67 | ||||||||||||
| Total Operating Revenues | 4,530 | 408 | 1,262 | 115 | 6,315 | ||||||||||||
| Operating Benefits and Expenses | |||||||||||||||||
| Death, other policy benefits and change in policy reserves, net of deferrals | 43 | — | 641 | — | 684 | ||||||||||||
| (Gain) loss from updating future policy benefits cash flow assumptions, net | (4) | — | 106 | — | 102 | ||||||||||||
| Interest credited on other contract holder funds, net of deferrals and amortization | 374 | 334 | 437 | — | 1,145 | ||||||||||||
| Interest expense | 24 | — | — | 85 | 109 | ||||||||||||
| Asset-based commission expenses | 1,022 | — | — | — | 1,022 | ||||||||||||
| Other commission expenses | 691 | — | 29 | — | 720 | ||||||||||||
| Sub-advisor expenses | 318 | — | — | (7) | 311 | ||||||||||||
| General and administrative expenses | 677 | 5 | 115 | 210 | 1,007 | ||||||||||||
| Deferral of acquisition costs | (530) | — | 19 | — | (511) | ||||||||||||
| Amortization of deferred acquisition costs | 551 | — | 10 | — | 561 | ||||||||||||
| Total Operating Benefits and Expenses | 3,166 | 339 | 1,357 | 288 | 5,150 | ||||||||||||
| Pretax Adjusted Operating Earnings | $ | 1,364 | $ | 69 | $ | (95) | $ | (173) | $ | 1,165 | |||||||
Intersegment eliminations in the above tables are included in the Corporate and Other segment. These include the elimination of investment income, between Retail Annuities and the Corporate and Other segments, as well as the elimination from fee income and investment income of investment fees paid by Jackson Financial and its subsidiaries to PPM, which were $98 million, $81 million, and $76 million for the years ended December 31, 2025, 2024 and 2023, respectively.
The following table summarizes the reconciling items from the non-GAAP measure of total operating revenues to the U.S. GAAP measure of total revenues attributable to the Company (in millions):
| Years Ended December 31, | ||||||||||||||||||||
| 2025 | 2024 | 2023 | ||||||||||||||||||
| Total operating revenues | $ | 7,365 | $ | 6,971 | $ | 6,315 | ||||||||||||||
| Fees attributed to guarantee benefit reserves | 3,060 | 3,122 | 3,125 | |||||||||||||||||
| Net gains (losses) on hedging instruments and investments | (4,645) | (7,904) | (7,512) | |||||||||||||||||
| Net investment income (loss) related to noncontrolling interests | 45 | 30 | 20 | |||||||||||||||||
| Consolidated investments | 3 | 28 | (39) | |||||||||||||||||
| Net investment income on funds withheld assets | 855 | 1,024 | 1,174 | |||||||||||||||||
Total revenues (1) | $ | 6,683 | $ | 3,271 | $ | 3,083 | ||||||||||||||
(1) Substantially all the Company's revenues originated in the U.S. There were no customers that, individually, generated revenues that exceeded 10% of total revenues attributable to the Company.
The following table summarizes the reconciling items from the non-GAAP measure of total operating benefits and expenses to the U.S. GAAP measure of total benefits and expenses attributable to the Company (in millions):
| Years Ended December 31, | ||||||||||||||||||||
| 2025 | 2024 | 2023 | ||||||||||||||||||
| Total operating benefits and expenses | $ | 5,483 | $ | 5,293 | $ | 5,150 | ||||||||||||||
| Net (gain) loss on market risk benefits | 605 | (3,809) | (3,897) | |||||||||||||||||
| Benefits attributed to guaranteed benefit features | 206 | 224 | 281 | |||||||||||||||||
| Amortization of DAC related to non-operating revenues and expenses | 503 | 541 | 591 | |||||||||||||||||
| Total benefits and expenses | $ | 6,797 | $ | 2,249 | $ | 2,125 | ||||||||||||||
The following table summarizes the reconciling items, from the non-GAAP measure of pretax adjusted operating earnings to the U.S. GAAP measure of net income attributable to the Company (in millions):
| Years Ended December 31, | ||||||||||||||||||||
| 2025 | 2024 | 2023 | ||||||||||||||||||
| Pretax adjusted operating earnings | $ | 1,882 | $ | 1,678 | $ | 1,165 | ||||||||||||||
| Pre-tax reconciling items from adjusted operating income to net income (loss) attributable to Jackson Financial Inc.: | ||||||||||||||||||||
| Fees attributable to guarantee benefit reserves | 3,060 | 3,122 | 3,125 | |||||||||||||||||
| Net gains (losses) on hedging instruments | (1,213) | (5,856) | (4,651) | |||||||||||||||||
| Market risk benefits gains (losses), net | (222) | 4,243 | 4,295 | |||||||||||||||||
| Net reserve and embedded derivative movements | (2,286) | (1,224) | (779) | |||||||||||||||||
| Total net hedging results | (661) | 285 | 1,990 | |||||||||||||||||
| Amortization of DAC associated with non-operating items at date of transition to LDTI | (503) | (541) | (591) | |||||||||||||||||
| Actuarial assumption updates and model enhancements | (360) | (419) | (406) | |||||||||||||||||
| Net realized investment gains (losses) | (44) | (11) | (554) | |||||||||||||||||
| Net realized investment gains (losses) on funds withheld assets | (1,304) | (1,052) | (1,801) | |||||||||||||||||
| Net investment income on funds withheld assets | 855 | 1,024 | 1,174 | |||||||||||||||||
| Other items | (24) | 28 | (39) | |||||||||||||||||
| Pretax income (loss) attributable to Jackson Financial Inc. | (159) | 992 | 938 | |||||||||||||||||
| Income tax expense (benefit) | (186) | 46 | 4 | |||||||||||||||||
| Net income (loss) attributable to Jackson Financial Inc. | 27 | 946 | 934 | |||||||||||||||||
| Less: Dividends on preferred stock | 44 | 44 | 35 | |||||||||||||||||
| Net income (loss) attributable to Jackson Financial Inc. common shareholders | $ | (17) | $ | 902 | $ | 899 | ||||||||||||||
The following table summarizes total assets by segment (in millions):
| December 31, | ||||||||||||||
| 2025 | 2024 | |||||||||||||
| Retail Annuities | $ | 307,225 | $ | 296,621 | ||||||||||
| Closed Life and Annuity Blocks | 26,988 | 26,700 | ||||||||||||
| Institutional Products | 12,869 | 9,332 | ||||||||||||
| Corporate and Other | 5,504 | 5,797 | ||||||||||||
| Total Assets | $ | 352,586 | $ | 338,450 | ||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 24, 2026 | Showing above |
| 2024 | Feb 26, 2025 | |
| 2023 | Feb 28, 2024 | |
| 2022 | Mar 1, 2023 | |
| 2021 | Mar 7, 2022 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.