Jackson Financial Inc Earnings
Jackson Financial Inc. (NYSE: JXN) has reported a robust financial performance for the fourth quarter and full year ending December 31, 2024. A significant increase in annuity sales and strategic adjustments have driven the company’s improved earnings and solidified its position in the financial industry. The company's strategic focus on strengthening its annuity offerings and enhancing shareholder value has yielded impressive results.
Jackson Financial Inc Results
The table below provides a detailed overview of Jackson Financial Inc.’s key financial metrics for the fourth quarter and the full year compared to the previous year:
| Financial Metric | Q4 2024 | Q4 2023 | % Change Q4 YoY | FY 2024 | FY 2023 | % Change FY YoY |
|---|---|---|---|---|---|---|
| Net Income (Million USD) | $334 | $(1,600) | N/A | $902 | $899 | 0.33% |
| Earnings per Diluted Share (USD) | $4.45 | $(19.64) | N/A | $11.74 | $10.76 | 9.10% |
| Adjusted Operating Earnings (Million USD) | $349 | $204 | 70.59% | $1,400 | $1,100 | 27.27% |
| Adjusted Operating Earnings per Share (USD) | $4.65 | $2.53 | 83.80% | $18.79 | $12.84 | 46.38% |
Revenue Breakdown
Jackson Financial demonstrated substantial growth across all segments, with significant gains in annuity sales. The following table highlights the company's revenue performance across major segments:
| Segment Type | Q4 2024 Sales (Billion USD) | Q4 2023 Sales (Billion USD) | % Change YoY |
|---|---|---|---|
| Retail Annuities | $4.7 | $3.3 | 42.42% |
| Variable Annuities | $2.8 | $2.2 | 27.27% |
| Registered Index-Linked Annuity (RILA) | $1.5 | $1.0 | 50.00% |
| Fixed and Fixed Index Annuities | $0.397 | $0.079 | 402.53% |
In-Depth Analysis of Segment Performance
The substantial jump in retail annuity sales emphasizes Jackson Financial's reinforced market position. The company achieved a 42% increase in retail annuity sales during the fourth quarter, with notable growth in both variable annuities and RILA sales, which rose by 27% and 50%, respectively, compared to the fourth quarter of 2023. The most remarkable growth was seen in fixed and fixed index annuities, which experienced a 402% increase. For the full year 2024, retail annuity sales amounted to $17.8 billion, marking a significant 39% increase from the previous year.
Key Developments
In 2024, Jackson Financial experienced a 7% increase in total annuity assets under management (AUM), bringing the total to $252 billion by year-end, up from $235 billion in 2023. This growth was largely attributed to favorable equity market conditions and potent operational performance. The year also saw Jackson Financial strategically employ a more effective hedging approach through its captive, Brooke Life Reinsurance Company, leading to better alignment between hedge assets and market risk benefits.
Comments from Company Officers
Laura Prieskorn, President and CEO of Jackson Financial, highlighted the company's exceptional performance in 2024 and praised their ability to deliver strong returns to shareholders. She commented, "2024 was a tremendous year of momentum for Jackson, with our financial performance highlighting success across our business. Our focus on offering differentiated and innovative solutions while generating value for shareholders has paid off tremendously."
Dividends and Share Repurchases
Jackson Financial demonstrated its commitment to returning capital to shareholders by repurchasing $415 million of its common shares and disbursing $216 million in common dividends throughout 2024. This capital return strategy resulted in a total shareholder return of $8.22 per diluted share, a 48% increase from 2023. In the fourth quarter alone, the company returned $148 million to common shareholders through share repurchases and dividends.
Jackson Financial Inc Stock Forecast
Based on Jackson Financial’s strong financial performance, strategic initiatives, and market presence, experts predict a positive outlook for the company's stock. With a current market cap of approximately $5.59 billion and considering recent developments, Jackson Financial's stock price forecasts suggest potential upside. The stock is projected to range between $120 to $140 per share over the next 12 months, depending on market conditions and ongoing strategic implementations.
In conclusion, Jackson Financial's impressive performance in 2024, underscored by strong growth in annuity sales and effective capital management, sets a positive tone for the company’s future. The strategic initiatives and robust cash flow position the company well for continued success and shareholder value enhancement in the coming years.
