Press release from Business Wire
Jackson Reports Nine Month 2013 Sales and Deposits of $20.7 Billion
Thursday, November 14, 2013
Jackson Reports Nine Month 2013 Sales and Deposits of $20.7 Billion09:24 EST Thursday, November 14, 2013
LANSING, Mich. (Business Wire) -- Jackson National Life Insurance Company® (Jackson®) generated $20.7 billion in total sales and deposits1 during the first nine months of 2013, an increase of 5.4 percent year over year. This modestly higher level of sales was achieved despite a decrease in sales of variable annuities (VAs) with living benefits, as the decline was more than offset by sales of Elite Access®, Jackson's VA investment platform without guarantees.
“Jackson's performance during the first nine months of 2013 is a reflection of our ability to create and market innovative products that meet the evolving needs of advisors and investors. Jackson's strong product development and distribution capabilities, along with our disciplined approach to product pricing, allow us to grow while maintaining a strong capital position, which is valuable to 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 (NYSE: PUK), recorded $15.5 billion in VA sales during the first nine months of 2013, of which nearly $3.0 billion consisted of Elite Access sales, compared to $15.3 billion and $630.1 million, respectively, during the first nine months of 2012. Sales of fixed index annuities totaled $1.3 billion, compared to $1.2 billion during the same period of the prior year. Fixed annuity sales for the first nine months of 2013 were $679.6 million, compared to $713.5 million during the first nine months of 2012.
In the first nine months of 2013, Jackson issued $1.1 billion of institutional products, up from $440.5 million in the first nine months of 2012. Jackson participates in the institutional market (guaranteed investment contracts, medium-term notes and funding agreements) on an opportunistic basis.
Curian Capital® LLC (Curian), Jackson's asset management subsidiary that provides customized investment management products and services through financial representatives, generated total deposits of $2.1 billion during the first nine months of 2013, an increase of 11.1 percent over the same period of 2012. Assets under management in Curian's core business increased to $10.3 billion as of September 30, 2013, up from $8.9 billion at year-end 2012.
“We're pleased that Jackson's broad retirement services offering continues to attract interest from our distribution partners. Jackson has carved out a leadership position in the traditional VA with living benefits space, but has also made significant progress in growing Elite Access into an important sales contributor. The success of Elite Access, coupled with the continued growth in deposits at Curian, has resulted in nearly 40 percent of year-to-date fee-based sales coming from products without living benefits,” said Clifford Jack, executive vice president and head of retail for Jackson.
During the first nine months of 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 November 13, 2013, Jackson had the following ratings:2
- 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 Sales 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.
2 Financial strength ratings do not apply to the principal amount or investment performance of the separate account or underlying investments of variable products.
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 to the Company.
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.
Although asset allocation among different asset categories generally limits risk and exposure to any one category, the risk remains that management may favor an asset category that performs poorly relative to the other asset categories. Some of those risks include general economic risk, geopolitical risk, commodity-price volatility, counterparty and settlement risk, currency risk, derivatives risk, emerging markets risk, foreign securities risk, high-yield bond exposure, noninvestment-grade bond exposure commonly known as “junk bonds”, index investing risk, industry concentration risk, leveraging risk, market risk, prepayment risk, liquidity risk, real estate investment risk, sector risk, short sales risk, temporary defensive positions, and large cash positions.
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 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.
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.
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 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.
Optional living benefits are available for an extra charge, in addition to the ongoing fees and expenses of the variable annuity.
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 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.
Jackson National Life Insurance Company
Director, Financial Communications & Social Media