Jackson Financial Inc. reported third‑quarter 2025 results that surpassed analyst expectations on adjusted earnings per share while revenue fell short of consensus. Net income rose to $65 million from a $480 million loss in the same quarter a year earlier, and adjusted operating earnings climbed to $433 million from $350 million in Q3 2024. The company generated $216 million in free cash flow and returned $210 million to shareholders, underscoring its commitment to capital generation.
The earnings beat was driven by a mix of higher spread income, lower operating expenses, and a favorable product mix. Variable annuity sales grew 8% to $2.9 billion, while record registered index‑linked annuity (RILA) sales surged 28% to $2.1 billion, reflecting strong demand for tax‑advantaged, inflation‑protected products. In contrast, fixed and fixed‑index annuity sales fell 57% to $444 million, a decline attributed to a strong sales level in Q3 2024 and a strategic shift toward higher‑growth RILAs. The company’s retail annuity segment reported pretax adjusted operating earnings of $494 million, up from $458 million, while institutional products saw earnings rise from $17 million to $31 million, driven by increased fee income and a 34% growth in institutional sales.
Revenue for the quarter was $1.42 billion, missing the consensus estimate of $1.88 billion by 24.9%. The shortfall was largely due to a 33.2% decline in revenue, driven by lower sales in legacy fixed‑index products and a modest decline in variable annuity fee income. However, the company’s robust capital position—statutory total adjusted capital of $5.6 billion and an estimated RBC ratio of 579%—provides a strong buffer and supports continued investment in product development and distribution.
Management highlighted the company’s strategic focus on RILAs and the launch of Jackson Income Assurance® and Jackson Income Assurance® Advisory fixed‑index annuities as key growth drivers. CEO Laura Prieskorn noted that the “ongoing strength and momentum of our business” is underpinned by a “broad and innovative product portfolio” and that the company’s free cash flow of $216 million “generates healthy cash flow, enabling us to return $210 million to shareholders.” She added that the firm is well positioned to extend this momentum through the remainder of 2025 and into 2026.
The market reacted positively to the earnings beat, with analysts noting the company’s ability to exceed expectations despite a revenue miss. The strong adjusted EPS of $6.16 versus the consensus estimate of $5.23—a beat of $0.93 or 17.8%—was cited as a primary driver of investor confidence. The company’s guidance for the full year remains supportive, with no change to revenue or operating income targets, indicating management’s confidence in sustaining profitability amid a challenging revenue environment.
The combination of a sharp turnaround in net income, a significant EPS beat, and a solid capital position positions Jackson Financial to capitalize on growing demand for RILAs while managing headwinds in legacy product lines. The company’s focus on cost discipline, product innovation, and shareholder returns signals a resilient strategy that should sustain its competitive advantage in the annuity market.
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