JNL(R)'s First Quarter Variable Annuity Sales Up More than 50%.
"Jackson's VA sales success is a result of our continued focus on providing value to both advisers and their clients," said Clark Manning, JNL's president and CEO. "Advisers can customize our variable annuity products to meet the individual needs of their clients, including separately priced optional benefits that allow consumers to only pay for the features they desire."
Jackson National Life(R), an indirect wholly owned subsidiary of the United Kingdom's Prudential plc (NYSE:PUK), reported retail sales in its core life and annuity product lines of more than $2.0 billion in the first quarter of 2006, up more than 29 percent over retail sales during the same period last year. First quarter 2006 marked the sixth consecutive quarter that JNL recorded an increase in variable annuity sales. VA sales rose each month throughout the first quarter, peaking at just over $600 million in March (a monthly record). In January 2006, Jackson National Life added five new portfolios to the lineup within its variable annuity products - four sub-advised by Standard & Poor's Investment Advisory Services, LLC(R) and one sub-advised by Mellon Capital Management. Additionally, JNL added a 5-percent annual benefit increase option to two of its popular lifetime guaranteed minimum withdrawal benefits(1).
"With innovative products, a producer-focused distribution model, and award-winning customer service, Jackson National Life has developed a significant competitive advantage in today's marketplace," said Clifford Jack, JNL executive vice president and chief distribution officer. "JNL has earned a top position with the industry's best advisers, and those distribution relationships helped drive our record retail sales this quarter."
JNL ranked 12th in industry variable annuity sales in 2005, up from 14th in 2004, and the company's VA market share rose by 28 percent, from a 2.8-percent market share in 2004 to 3.6 percent in 2005(2). Furthermore, JNL's Perspective II(R) variable annuity was the top-selling VA contract among independent financial advisers and ranked fourth in total industry VA contract sales during 2005(2). The success of Perspective II helped JNL grow its VA assets under management by 31.8 percent last year, the highest annual increase recorded among the industry's top 25 variable annuity sellers(2).
Sales of JNL's fixed index annuities surpassed $232 million in the quarter, a decline of approximately 4 percent from first quarter 2005 sales. JNL's traditional fixed annuity sales totaled $260 million, down 16 percent from the prior year period, and total first-year life insurance premium reached nearly $9.6 million, down 23 percent from first quarter 2005.
"Industry sales growth of fixed and fixed index annuities has slowed over the past nine months," Jack said. "Low interest rates and a flat yield curve have limited customer demand for fixed annuities, and continued uncertainty in the regulatory environment has dampened interest in FIAs."
During the first quarter of 2006, JNL capitalized on several attractive issuance opportunities to generate nearly $783 million in institutional product sales, a 1-percent increase over the prior year period. JNL's subsidiary Curian Capital, a registered investment adviser, gathered more than $212 million in deposits, down 4 percent from first quarter 2005, as the firm focused on profitable growth. Upon completion of its third full year of operation, in March 2006, Curian's total assets under management surpassed $1.8 billion.
(1) These are optional benefits available for an additional charge and limitations and restrictions apply. If all withdrawals taken in a contract year are greater than the Guaranteed Annual Withdrawal Amount (GAWA), or the minimum required distribution for that contract only on certain contracts utilizing LifeGuard 5, the lifetime guarantee is null and void. Withdrawals in excess of GAWA also reduce the LifeGuard benefit. If elected at issue, this means you may not receive your original investment back.
(2) Source: The Variable Annuity Research & Data Service (VARDS(R)), a unit of Morningstar, Inc.
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.
With nearly $68 billion in assets (GAAP) as of 12/31/05(a), Jackson National Life is an industry leader in variable, fixed and fixed index annuities. JNL also sells life insurance and institutional products. The company markets its products in 49 states and the District of Columbia, through independent and regional broker-dealers, financial institutions, independent insurance agents, and registered investment advisers. JNL's subsidiary, Jackson National Life Insurance Company of New York(R), markets products through similar channels in the state of New York. Through its affiliates and subsidiaries, JNL also provides separately managed accounts, asset management and retail brokerage services. For more information, visit www.jnl.com.
(a) JNL also has more than $60 billion (GAAP) in policy liabilities set aside primarily to pay future policyowner benefits as of 12/31/05.
Annuities and life insurance products are issued by Jackson National Life Insurance Company (Home Office: Lansing, Michigan). Variable products are distributed by Jackson National Life Distributors, Inc. May not be available in all states and state variations may apply. These contracts have limitations and restrictions, including withdrawal charges, recapture charges and excess interest adjustments. Contact your representative or the Company for more information.
Perspective II Fixed and Variable Annuity (VA220 and VA250).
Variable annuities involve investment risks and may lose value. The long-term advantage of the benefit options will vary with the performance of the variable investment options you select and the length of time you own your annuity. Under certain market conditions, the cost of the options may exceed the actual benefit. All guarantees are backed by the claims-paying ability of Jackson National Life Insurance Company and do not apply to the principal amount or investment performance of the separate account or its underlying investments. The value of the variable annuity fluctuates with that of the underlying portfolios. Please remember that a JNL variable annuity is intended to be a long-term, tax-deferred investment 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% federal tax penalty.
Fixed index annuities are issued by Jackson National Life Insurance Company, Home Office: Lansing, Michigan and distributed by Jackson National Life Distributors, Inc. Not available in all states and state variations may apply. These products are fixed annuities that do not participate in any stock or equity investments. Limitations and restrictions apply, including possible withdrawal charges. During the withdrawal charge period, the annuity's cash value may be less than the principal allocation. For costs and complete details, contact your representative of the Company. Fixed index annuities may not be suitable for everyone. Contact your representative to help determine if a JNL fixed index annuity is right for your situation.
Jackson National Life Insurance Company, headquartered in Lansing, Michigan, is an indirect subsidiary of Prudential plc (NYSE:PUK), a company incorporated and with its principal place of business in the United Kingdom. Prudential plc and its affiliated companies constitute one of the world's leading financial services groups. It provides insurance and financial services directly and through its subsidiaries and affiliates throughout the world. It has been in existence for over 150 years and has more than $400 billion in assets under management (as of December 31, 2005). 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, the 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.