The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Globe Investor

News Sources

Take control of your investments with the latest investing news and analysis

Press release from Business Wire

Jackson® Approaches Upper Range for 2013 Variable Annuity Premium

Tuesday, October 22, 2013

Jackson® Approaches Upper Range for 2013 Variable Annuity Premium

11:00 EDT Tuesday, October 22, 2013

LANSING, Mich. (Business Wire) -- Jackson National Life Insurance Company® (Jackson) announced today the company is approaching the upper range for calendar year 2013 for total premium from variable annuities (VAs) that offer optional guaranteed benefits. Consistent with prior years, Jackson will manage the volume of its VA business in line with the overall growth of its balance sheet.

“Jackson is experiencing another very successful year, once again benefiting from a flight to quality in the variable annuity marketplace,” said Mike Wells, Jackson president and chief executive officer. “Strong demand for our variable annuity products compelled Jackson to manage new business volumes near the end of 2012, and the same is true for 2013. As part of our active risk management program, we seek to balance our guaranteed and non-guaranteed business to avoid a concentration of exposure to any single product type in any one year. Due to our disciplined approach to risk management, Jackson's financial position remains strong. Our variable annuity products are priced to provide value to the customer and cover the costs of hedging for the current economic environment.”

“The variable annuity market remains attractive for Jackson and we are committed to writing new business within our overall appetite for risk,” Wells continued. “Being consistent and disciplined in our risk management practices enables us to maintain the confidence and trust of all of our stakeholders.”

To manage sales volumes, Jackson will no longer accept new 1035 exchange business or qualified transfers of assets for VAs that offer optional guaranteed benefits as of 4 p.m. Eastern Daylight Time on Friday, October 25, 2013. As of Monday, December 16, 2013, Jackson plans to resume accepting new 1035 exchange business and qualified transfers of assets. No limitation will be placed on new 1035 exchange business or qualified transfers of assets for Jackson's Elite Access® product or for Jackson's fixed or fixed index annuity products.

“We are actively contacting our distribution partners to alert them that Jackson is taking action to manage our sales volumes of VA products that offer optional guaranteed benefits, as we did last year,” said Clifford Jack, executive vice president and head of retail for Jackson. “Our goal is to manage production over the next few weeks with as little disruption as possible to our partners and their clients. And, with no limitation on sales of Elite Access, advisors and their clients will still be able to choose a Jackson variable annuity investment platform that offers a variety of traditional and alternative investment options.”

During 2013, all four primary rating agencies — A.M. Best, Standard & Poor's, Fitch Ratings and Moody's Investors Service, Inc. — affirmed Jackson's financial strength ratings. Jackson has maintained the same financial strength ratings for more than 10 years.As of October 21, 2013, Jackson had the following ratings:1

  • 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.

1 Financial strength ratings do not apply to the principal amount or investment performance of the separate account or underlying investments of variable products.

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 $173.6 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, visit www.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 $173.6 billion in total IFRS assets and $161.2 billion in IFRS policy liabilities primarily set aside to pay future policyowner benefits as of June 30, 2013.

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.

Elite Access Fixed and Variable Annuity (VA650, VA660) is issued by Jackson National Life Insurance Company (Home Office: Lansing, Michigan) and in New York (VA650NY, VA660NY) 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, and may not be available in all states, and state variations apply. This product has limitations and restrictions, including withdrawal charges and excess interest adjustments (interest rate adjustments in New York) where applicable.

Jackson issues other variable annuities with different features, benefits, limitations and charges. Discuss Jackson's other variable annuity options with your representative or contact Jackson for more information.

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). Variable annuities are distributed by Jackson National Life Distributors LLC and may not be available in all states, and state variations may apply. These contracts have limitations and restrictions, including possible withdrawal charges, recapture charges and excess interest adjustments. Contact your representative or the Company for more information.

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.

Jackson National Life Insurance Company is an indirect subsidiary of Prudential plc, a company incorporated and with its principal place of business in England. Prudential plc and its affiliated companies constitute a large global financial services group. It has been in existence for 165 years and has $648.2 billion in assets under management as of June 30, 2013. 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.

CORPORATE COMMUNICATIONS
Jackson National Life Insurance Company
Matt Gonring, 800-565-9044 x35521
Vice President, Corporate Communications
matt.gonring@jackson.com

Products
  • Globe Unlimited

    Digital all access pass across devices. subscribe

  • The Globe and Mail Newspaper

    Newspaper delivered to your doorstep. subscribe

  • Globe2Go

    The digital replica of our newspaper. subscribe

  • Globe eBooks

    A collection of articles by the Globe. subscribe

See all Globe Products

Advertise with us

GlobeLink.ca

Your number one partner for reaching Canada's Influential Achievers. learn more

The Globe at your Workplace
Our Company
Customer Service
Globe Recognition
Mobile Apps
NEWS APP
INVESTING APP
Other Sections