Jackson's First Quarter Annuity Sales Rise 8% to $2.6 Billion.
Fixed Annuity Fixed Annuity
An insurance contract in which the insurance company makes fixed dollar payments to the annuitant for the term of the contract, usually until the annuitant dies. The insurance company guarantees both earnings and principal. Sales Drive Annuity Net Flows 21% Higher
LANSING, Mich. -- Jackson National Life Jackson National Life Insurance is a U.S. life assurance company that is a subsidiary of the UK based insurer, Prudential Plc. Founded in 1961, Jackson is headquartered in Lansing, Michigan, and has over a thousand employees in the region. Insurance Company([R]) (Jackson([R])) generated $2.6 billion in annuity sales during the first quarter of 2009, up 8 percent over the prior year period. First quarter 2009 annuity net flows (total premium minus surrenders, exchanges and annuitizations) of $1.0 billion were 21-percent higher than the same period in 2008, due in part to an 81-percent year-over-year increase in traditional fixed annuity sales. Jackson's first quarter retail sales and deposits1 totaled $2.7 billion, in line with retail sales and deposits in the first quarter of 2008.
"Despite challenging macroeconomic mac·ro·ec·o·nom·ics
n. (used with a sing. verb)
The study of the overall aspects and workings of a national economy, such as income, output, and the interrelationship among diverse economic sectors. conditions, Jackson has maintained strong inflows of new premium and good persistency on its back book, as customers and advisers favor a business partner that is consistent throughout all phases of the business cycle," said Clark Manning, Jackson's president and chief executive officer. "Jackson's prudent approach to product pricing and risk management is a significant competitive advantage in the current market environment."
In the first quarter of 2009, Jackson, an indirect wholly owned subsidiary Wholly Owned Subsidiary
A subsidiary whose parent company owns 100% of its common stock.
In other words, the parent company owns the company outright and there are no minority owners. of the United Kingdom's Prudential plc (NYSE NYSE
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An insurance contract in which, at the end of the accumulation stage, the insurance company guarantees a minimum payment. The remaining income payments can vary depending on the performance of the managed portfolio. sales, compared to $1.8 billion in the first quarter of 2008. Sales of traditional fixed annuities Fixed annuities
Contracts in which an insurance company or issuing financial institution pays a fixed dollar amount of money per period. were $693 million, up from $382 million during the same period of the prior year. Jackson's fixed index annuity sales of $354 million were up 83 percent over the first quarter of 2008.
"In this turbulent market, advisers and their clients are increasingly attracted to the stability of Jackson's franchise," said Clifford Jack, executive vice president and chief distribution officer for Jackson. "Jackson's product offering and wholesaling force has remained relatively consistent, and the company's financial strength ratings are unchanged."
Jackson has maintained its financial strength ratings for more than six years and, in March 2009, both Moody's Investors Service Moody's Investors Service
A leading global credit rating, research and risk analysis firm.
Moody's Investors Service
A leading firm engaged in credit rating, risk analysis, and research of fixed-income securities and their issuers. and Fitch Ratings affirmed Jackson's financial strength ratings. As of March 31, 2009, Jackson was rated:
* A+ (superior) by A.M. Best
* AA (very strong) by Standard & Poor's
* AA (very strong) by Fitch Ratings
* A1 (good) by Moody's Investors Service, Inc.
In the first quarter of 2009, Jackson sold $12 million in life insurance products, compared to $14 million in the first quarter of 2008. Jackson did not sell any institutional products during the first quarter of 2009, as the company redirected available capital to support higher-margin annuity sales. Jackson participates in the institutional market on an opportunistic basis when capital is available and margins are attractive.
Curian Capital, Jackson's separately managed accounts subsidiary, accumulated $140 million in deposits during the first quarter of 2009, compared to $310 million during the same period of the prior year. As of March 31, 2009, Curian's assets under management Assets Under Management (AUM) is a term used by financial services companies in the mutual fund and money management or investment management business to gauge how much money they are managing. totaled $2.3 billion, down from $2.6 billion at the end of 2008, due primarily to a double-digit decline in equity markets during the first quarter of 2009.
"Jackson's first-quarter sales performance reflects the company's strategy of balancing profitable growth with capital preservation," Manning said. "Jackson remains well-capitalized and will continue to be managed for the long-term benefit of both our customers and our parent company's shareholders."
(1)Deposits from retail mutual funds and Jackson's subsidiary Curian Capital have been included in Jackson's retail sales and deposits figures. Retail sales and deposits exclude sales of institutional products -- guaranteed investment contracts, funding agreements and medium-term notes.
About Jackson National Life Insurance Company
With nearly $75 billion in assets (IFRS IFRS International Financial Reporting Standard(s)
IFRS Inter Frame Relay Service
IFRS Indiana Facilities Registry System unaudited)*, Jackson National Life Insurance Company is an industry leader in variable, fixed and fixed index annuities. The company also offers life insurance and institutional products. Jackson markets its products in 49 states and the District of Columbia District of Columbia, federal district (2000 pop. 572,059, a 5.7% decrease in population since the 1990 census), 69 sq mi (179 sq km), on the east bank of the Potomac River, coextensive with the city of Washington, D.C. (the capital of the United States). through independent and regional broker-dealers, financial institutions and independent insurance agents. Jackson's subsidiary, Jackson National Life Insurance Company of New York([R]), similarly markets products in the state of New York. Through its affiliates and subsidiaries, Jackson also provides asset management, retail mutual funds and retail brokerage services. For more information, visit www.jackson.com.
*Jackson has nearly $75 billion in total IFRS assets and more than $69 billion in IFRS policy liabilities set aside to pay primarily future policyowner benefits (as of 12/31/08). International Financial Reporting Standards International Financial Reporting Standards (IFRS) are standards and interpretations adopted by the International Accounting Standards Board (IASB).
Many of the standards forming part of IFRS are known by the older name of International Accounting Standards (IAS). (IFRS) is a principles-based set of international accounting standards indicating how transactions and other events should be reported in financial statements. IFRS are issued by the International Accounting Standards Board An editor has expressed concern that this article or section is .
Please help improve the article by adding information and sources on neglected viewpoints, or by summarizing and in an effort to increase global comparability of financial statements and results. IFRS is used by Jackson's parent, Prudential plc, to report the Group's financial results.
Annuities and life insurance products are issued by Jackson National Life Insurance Company (Home Office: Lansing, Michigan) and Jackson National Life Insurance Company of New York (Home Office: Purchase, New York Purchase, New York is a hamlet of the town of Harrison, in Westchester County. Its Zip code is 10577.
Purchase is home to Purchase College, which is part of the State University of New York system, Manhattanville College, a private liberal arts college, and the headquarters ). Variable products are distributed by Jackson National Life Distributors LLC (Logical Link Control) See "LANs" under data link protocol.
LLC - Logical Link Control . May not be available in all states and state variations may apply. These contracts have limitations and restrictions, including possible withdrawal charges, recapture charges and excess interest adjustments. Contact your representative or the Company for more information.
Please remember that a Jackson annuity is intended to be a long-term, tax-deferred 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. Variable annuities involve investment risks and may lose value.
Jackson National Life Insurance Company is an indirect subsidiary of Prudential plc, 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 service 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 had more than $358 billion in assets under management as of December 31, 2008. 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 UNITED STATES OF AMERICA. The name of this country. The United States, now thirty-one in number, are Alabama, Arkansas, Connecticut, Delaware, Florida, Georgia, Illinois, Indiana, Iowa, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Mississippi, Missouri, New Hampshire, .
The following cautionary statement is included to make applicable and take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and 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.