A.M. Best Affirms Ratings of Jackson National Life and Affiliates.

OLDWICK, N.J. -- A.M. Best Co. has affirmed the financial strength rating (FSR) of A+ (Superior) and of Jackson National Life Insurance Company, its wholly-owned subsidiary, Jackson National Life Insurance Company of New York (together known as JNL) and its direct parent, Brooke Life Insurance Company. Additionally, A.M. Best has affirmed the issuer credit rating (ICR) of "aa" of Jackson National Life Insurance Company and has assigned ICRs of "aa" to Jackson National Life Insurance Company of New York and Brooke Life Insurance Company.

Concurrently, A.M. Best has affirmed the debt ratings of "aa" on JNL's funding agreement-backed securities (FABS) programs and the outstanding notes issued thereunder. A.M. Best has also assigned a debt rating of "a+" to JNL's existing $250 million 8.15% surplus notes. The outlook for all ratings is stable. All the above companies are headquartered in Lansing, MI.

The ratings reflect JNL's strong market positions in the individual annuity arena, solid risk-adjusted capitalization and its consistently profitable operations. The company's established market positions are supported by its low cost expense structure and diverse distribution channels, which have enabled it to become one of the nation's largest writers of individual annuities. JNL is the U.S. operating arm of Prudential plc, one of the U.K.'s largest insurers and among the world's leading financial services organizations. Outside of the United Kingdom, JNL is the largest contributor to the group's overall earningsCorepresenting almost 40% of 2005 consolidated profits (IFRS basis)Coand Prudential plc has made sizable capital contributions to JNL in recent years.

While the ratings recognize JNL's strong operating performance and ability to accumulate statutory capital, A.M. Best notes that JNL possesses a less diversified liability profile than many similarly-rated companies. Due to its concentration in annuity liabilities, JNL is exposed to interest rate risk, especially at times of increasing rates as a portion of its contracts may surrender at book value without a surrender charge or market value adjustment (currently 30% of fixed annuities). JNL's growing variable annuity portfolio also exposes it to equity market risk in the form of both product guarantees and volatility of fee income. A.M. Best notes that JNL's disciplined asset/liability management practices and hedging programs serve to mitigate interest rate and equity risk under a broad range of economic scenarios.

Additionally, JNL maintains an above average allocation to "bbb" category bonds in its investment portfolio (34% of invested assets), therefore assuming a higher level of credit risk than industry peers. Although considerable capital losses were realized from 2001 to 2003 (nearly $1 billion), JNL was able to successfully manage through the credit downturn, and A.M. Best expects positive operating trends to continue.

The following debt ratings have been affirmed:

Jackson National Life Funding, LLC(__) "aa" program rating

--"aa" on all outstanding notes issued under the program

Jackson National Life Global Funding(__) "aa" program rating

--"aa" on all outstanding notes issued under the program

The following debt rating has been assigned:

Jackson National Life Insurance Company(__)

--"a+" on $250 million 8.15% surplus notes, due 2027

For Best's Debt Ratings, all other Best's Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings.

For current Best's Ratings, independent data and analysis on more than 1,100 individual life/health companies and A.M. Best groups, please visit www.ambest.com/lh.

A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. For more information, visit A.M. Best's Web site at www.ambest.com.