JacksonSM Reports Total Sales and Deposits of $14 Billion in 2008.
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) generated more than $14.0 billion in total sales and deposits1 during 2008, representing the second-best sales year in the company's history. Total sales and deposits fell 3 percent from 2007, which was a record sales year for Jackson. The resilient sales performance was driven primarily by higher 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. (up 179 percent year over year) and institutional products (up 18 percent year over year), offset by lower sales of variable annuities Variable annuities
Investment contracts whose issuer pays a periodic amount linked to the investment performance of an underlying portfolio. (down 29 percent year over year).
"Recently, there has been a flight to quality in the US life insurance market," said Clark Manning, Jackson's president and chief executive officer. "With a broad product portfolio that includes variable, traditional fixed and fixed index annuities, as well as life insurance, mutual funds and institutional products, Jackson is able to meet the needs of advisers and their clients under all economic conditions."
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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In 2008, Jackson recorded more than $11.8 billion in retail sales and deposits3, down 7 percent from the prior year period, with total annuity net flows (total premium minus surrenders, exchanges and annuitizations) falling 2 percent year over year. Variable annuity Variable Annuity
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 totaled $6.5 billion, compared to $9.1 billion in 2007. Sales of traditional fixed annuities were $3.2 billion during 2008, compared to $1.1 billion during the prior year. Jackson sold $928 million in fixed index annuities, up from $894 million during 2007. In the fourth quarter of 2008, fixed index annuity sales were 35 percent higher than third quarter 2008 and 45 percent higher than fourth quarter 2007.
"Jackson is an attractive business partner for advisers because we consistently offer innovative solutions, value-added wholesaling support and award-winning customer service," said Clifford Jack, executive vice president and chief distribution officer for Jackson. "During 2008, Jackson further strengthened its distribution relationships by providing the resources, guidance and services advisers need most during difficult times."
Jackson generated life insurance sales of $58 million in 2008, up 13 percent over 2007 due primarily to a 32-percent year-over-year increase in universal life sales. Deposits in the Jackson Funds(SM), which were launched in January 2007, totaled $67 million in 2008, compared to $120 million in 2007. During 2008, Jackson sold more than $2.2 billion in institutional products, up from $1.9 billion in 2007. Jackson participates in the institutional market on an opportunistic basis.
Curian Capital, Jackson's separately managed accounts subsidiary, accumulated $1.1 billion in deposits during 2008, compared to $1.3 billion in the prior year. As of December 31, 2008, 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 $2.6 billion, compared to $3.5 billion at the end of 2007, due primarily to a sharp decline in equity markets.
Jackson's financial strength ratings have remained unchanged for more than five years. As of December 31, 2008, Jackson was rated:
* A+ (superior) by A.M. Best
* AA (very strong) by Standard & Poor's
* AA (very strong) by Fitch Ratings Fitch Ratings
An international rating agency for financial institutions, insurance companies, and corporate, sovereign, and municipal debt. Fitch Ratings has headquarters in New York and London and is wholly owned by FIMALAC of Paris.
* A1 (good) by 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. , Inc.
In August 2008, Standard & Poor's affirmed Jackson's AA rating with a stable outlook and, in October 2008, Moody's affirmed Jackson's A1 rating with a stable outlook.
"Jackson is a well-capitalized company with a diversified suite of retirement savings and income products and a highly effective distribution network," said Manning. "By operating in a Long-Term Smart(SM) fashion, we have positioned ourselves for stability and consistent growth over the course of the business cycle."
(1)Deposits from retail mutual funds and Jackson's subsidiary Curian Capital have been included in Jackson's total and retail sales and deposits figures, beginning with full-year 2007. Prior year comparisons have been restated to include deposits from Curian and the retail mutual funds.
(2)Based on authorized control level capital requirements Capital requirements
Financing required for the operation of a business, composed of long-term and working capital plus fixed assets. .
(3)Retail sales and deposits exclude sales of institutional products -- guaranteed investment contracts Guaranteed investment contract (GIC)
A pure investment product in which a life company agrees, for a single premium, to pay at a maturity date the principal amount of a predetermined annual crediting (interest) rate over the life of the investment. , funding agreements and medium-term notes.
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.
About Jackson National Life Insurance Company
With more than $82 billion in assets (GAAP GAAP
See: Generally Accepted Accounting Principles
See generally accepted accounting principles (GAAP). )*, Jackson National Life Insurance Company (Jackson) 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 New York, state, United States
New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of ([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.jnl.com.
*Jackson had more than $82 billion in total assets (GAAP unaudited) and nearly $75 billion in policy liabilities (GAAP unaudited) set aside to pay primarily future policyowner benefits (as of 6/30/08).
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 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 Affiliated Companies
A situation that occurs when one company owns a minority interest (less than 50%) in another company.
Also refers to companies that are related to each other in some way.
An affiliated company is sometimes referred to as a subsidiary. 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 $509 billion in assets under management as of June 30, 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 Safe Harbor
1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated.
2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. 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.