Jackson National shares have risen 70% in the past year due to elevated rates and rising equities.

Jackson National shares have experienced a notable increase of 70% over the past year, primarily driven by elevated interest rates and a bullish equity market. This surge in share value has been further bolstered by the company’s strong capital position, evident through its risk-based capital standing at an impressive 624% by year-end. Jackson National has strategically de-risked its operations and streamlined its capital and hedging requirements through the establishment of a captive reinsurer. Despite a slight dip in operating earnings in the fourth quarter, the company’s annuity sales remain robust, with a staggering 80% increase in RILA index annuity sales compared to the previous year. The variable annuity account values have also witnessed a substantial growth from $206 billion to $228 billion. Jackson National’s prudent risk management approach is perceived through its comfortably exceeding the target for risk-based capital position, and its decision to switch to quarterly dividend payouts to its holding company, further reinforcing its commitment to shareholder value.

Jackson National shares performance

Jackson National shares have experienced a significant rise of 70% in the past year. This impressive growth can be attributed to several factors, including elevated rates and rising equities. Investors have recognized the company’s strong performance and have shown confidence in its ability to deliver positive results.

Capital position and risk-based capital

One key contributor to Jackson National’s success is its strong capital position. The company has diligently managed its capital resources, ensuring that it has an ample amount to support its operations and withstand potential risks. At year-end, Jackson National boasted a risk-based capital ratio of 624%, indicating its ability to absorb unforeseen losses without compromising its financial stability.

De-risking and captive reinsurer

To further strengthen its financial position, Jackson National has implemented a de-risking strategy. By focusing on reducing potential risks, the company has taken proactive measures to safeguard its financial health. Additionally, to simplify its capital and hedging needs, Jackson National has created a captive reinsurer. This entity provides the company with greater control over its capital allocation and risk management strategies.

Operating earnings in the fourth quarter

In the fourth quarter, Jackson National reported operating earnings of $2.53. While this represents a decrease from the previous year’s $3.39, it is important to consider the broader context. The company has consistently shown strong financial performance, and this minor decline does not undermine its overall stability and profitability.

Annuity sales performance

Jackson National continues to experience robust sales of annuities. This is a testament to the company’s ability to offer attractive products that meet the needs of its customers. Particularly noteworthy is the exceptional growth in RILA index annuity sales, which saw an 80% increase compared to the previous year. This highlights the success of Jackson National’s annuity offerings and its strong competitive position in the market.

Variable annuity account values

Another positive indicator of Jackson National’s performance is the increase in variable annuity account values. These values have risen significantly, reaching $228 billion from $206 billion in the previous year. This growth is a reflection of the company’s ability to attract and retain investors, who see the value and potential returns in Jackson National’s variable annuity products.

Risk-based capital and captive reinsurer

As mentioned earlier, Jackson National maintains a robust risk-based capital position. With its risk-based capital ratio well above its target, the company demonstrates its commitment to prudently managing its capital resources. In line with its de-risking strategy, Jackson National has also established a captive reinsurer. This entity plays a crucial role in managing the company’s capital and hedging needs, providing additional flexibility and control in mitigating potential risks.

Change in dividend payment frequency

In a recent strategic decision, Jackson National has opted to change its dividend payment frequency. Instead of making annual dividend payments, the company will now send dividends to its holding company on a quarterly basis. This change aligns with Jackson National’s focus on optimizing capital allocation and ensuring a consistent and regular return to its shareholders. Quarterly dividend payments provide investors with more frequent financial rewards, enhancing the overall attractiveness of the company’s stock.

In conclusion, Jackson National has achieved remarkable success in the past year, with its shares experiencing a significant rise of 70%. This growth can be attributed to various factors, including strong capital position, diligent risk management, and attractive product offerings. Despite a slight decrease in operating earnings in the fourth quarter, Jackson National remains financially stable and capable of generating positive results. The company’s continued strong sales of annuities, particularly the impressive growth in RILA index annuity sales, further solidify its competitive position in the market. Additionally, the increase in variable annuity account values demonstrates the trust and confidence investors have in Jackson National’s products. With a well-above-target risk-based capital position and the establishment of a captive reinsurer, the company has taken proactive steps to manage potential risks and optimize its capital and hedging strategies. Finally, Jackson National’s decision to change its dividend payment frequency to quarterly reflects its commitment to providing consistent and rewarding returns to its shareholders. These developments highlight Jackson National’s dedication to excellence and its ability to adapt to changing market conditions while maintaining financial stability and delivering value to its stakeholders.