Jackson Financial Inc (JXN) (Q3 2026) Earnings Call Highlights: Record Annuity Sales and 28% ...

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Release Date: November 04, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript .

Positive Points

• Record retail annuity sales of $6.5 billion, up 22% year over year, with spread-based products comprising nearly 60% of sales.

• Adjusted operating earnings per diluted share of $7.55, or $7.67 excluding notables, a 28% increase year over year.

• Free cash flow increased 18% to $850 million through the first nine months of 2026, with $838 million returned to shareholders.

• RILA sales reached a record $3 billion, up 44% year over year, and RILA assets grew to nearly $29 billion.

• Exclusive partnership with AARP to provide annuities to millions of members, expanding distribution through a direct-to-consumer platform.

Negative Points

• Limited partnership results were below the long-term 10% return assumption, resulting in an unfavorable impact of $0.24 per share.

• Variable annuity surrender rates increased modestly due to strong equity markets, contributing to net outflows.

• An RBC-related headwind from trailing 12-month fixed and fixed indexed annuity sales impacted free capital generation.

• The fourth quarter assumption review is ongoing, with potential adjustments to lapse rates that could affect reserves and capital.

• Brooke Re faces a timing mismatch between three-year settlement payments and longer-duration liabilities, creating potential liquidity headwinds in rising equity and rate environments.

Q & A Highlights

Q: Alex Scott of Barclays asked about the fourth-quarter assumption review and lapse rate adjustments, and whether Jackson has capital flexibility in Brooke Re to absorb any impact rather than needing holding company capital. A: CFO Brian Walta said the comprehensive, data-driven assumption review is still underway and details will be provided at year-end earnings. He noted lapse rates have ticked up over the last several years, and higher equity markets in 2026 would imply modestly higher expected lapse rates, but the 2025 adjustments improved unexpected policyholder behavior this year. He declined to speculate on the impact, citing a strong Brooke Re quarter and confidence in enterprise-wide financial flexibility.

Q: Alex Scott of Barclays asked how Jackson plans to manage the timing mismatch between the three-year intercompany settlement period at Brooke Re and the longer duration of the market risk benefits, and what levers exist if equities and rates keep rising. A: CEO Don Cummings said the S&P 500 is up about 60% and the 20-year Treasury nearly 150 basis points since Brooke Re's formation, creating a liquidity headwind at Brooke Re but a tailwind for the overall enterprise. He cited the steady guarantee fee stream, the extended settlement period, and steps such as the P-Caps transaction, adding Jackson will take appropriate actions to meet Brooke Re's obligations. CFO Brian Walta noted the $2.8 billion to $2.9 billion recurring fee stream has been stable, and a notable share of hedge losses at Brooke Re are internal trades offset by RILA hedging at JNL.

Q: Suneet Kamath of Jefferies asked whether regulators are taking a closer look at captive reinsurance relationships and whether Jackson has heard anything suggesting Michigan regulators might revisit Brooke Re's structure. A: CEO Don Cummings said Jackson has been regulated in Michigan for 65 years and has a longstanding relationship with the Michigan Department of Insurance and Financial Services. He noted Brooke Re and Hickory Re were established under Michigan's well-established captive framework, went through rigorous review, and were not set up under a permitted practice. He congratulated incoming Governor Benson but said Jackson does not expect the administration change to require any changes to its captives.

Q: Suneet Kamath of Jefferies asked for an update on the mix of hard assets versus market risk benefits at Brooke Re and what additional disclosure Jackson plans at year-end. A: CEO Don Cummings said cumulative fees received since formation have exceeded required settlement payments, so hard assets have increased, though future levels depend on equity markets and settlement cash flows. CFO Brian Walta confirmed hard assets are greater than the initial $700 million capitalization, said Jackson will provide an equity walkthrough at year-end consistent with prior years, and noted results are path dependent, with interest rates in the current quarter unwinding much of the third-quarter move.

Q: Ryan Krueger of KBW asked how much of the original $650 million of capital contributed to Hickory Re has been consumed by fixed and fixed index annuity growth seeded to the captive. A: CFO Brian Walta said strong sales, particularly of the FIA GMWB product, have begun to use some of that capacity, but significant capacity remains over the coming years. He said Jackson is pleased with the business's 2026 performance and that the sales outlook is strong.

Q: Ryan Krueger of KBW asked how meaningful the exclusive AARP annuity provider arrangement could be over the next few years, noting AARP has not previously had an annuity provider. A: CEO Don Cummings said the program expands access to Jackson products through a direct-to-consumer channel and supports growth and diversification, but it is early and will take time to roll out nationally. Head of Distribution Alison Reed said the program launches in mid-November in 10 states, expands nationally in the first half of 2027, and will initially focus on fixed and spread products through a digital platform, which Jackson sees as an incremental growth source and new distribution channel.

Q: Alex Scott of Barclays asked about lapse rate experience and the fourth-quarter review, including whether Brooke Re or the holding company would absorb any capital impact. A: CEO Don Cummings said the fourth-quarter assumption review is a disciplined, experience-based process still underway and he did not want to get ahead of its conclusions. CFO Brian Walta added that Jackson supplements its own experience with industry data and benchmarking, and that the review process will not change from prior years.

Q: Suneet Kamath of Jefferies asked about regulatory scrutiny of captives and the structure of Brooke Re. A: CEO Don Cummings said both Brooke Re and Hickory Re went through rigorous review with substantial engagement from Michigan department staff and fully comply with Michigan law, which is similar to many other states. He said Jackson stands ready to work with the incoming administration and expects no required changes to its captives.

Q: Ryan Krueger of KBW asked about the AARP opportunity and how Jackson is framing its potential contribution. A: Head of Distribution Alison Reed said the exclusive program will offer a distinct set of Jackson annuity products, initially fixed and spread products with room to expand, through a digital direct-to-consumer experience. She said it represents incremental growth and a new channel as Jackson broadens distribution.

Q: Suneet Kamath of Jefferies asked about Brooke Re's capital position and disclosure plans. A: CFO Brian Walta said Jackson is pleased with Brooke Re's performance this quarter, with the economic hedging program working as expected and high hedge effectiveness through the year. He said constructive moves in equities and rates produced productive movements at Brooke Re, and Jackson stress tests across higher and lower market scenarios given path dependency.

For the complete transcript of the earnings call, please refer to the full earnings call transcript .