Q1 2025 Jackson Financial Inc Earnings Call

Portion of the call with an opportunity for questions and answers at the end if you would like to ask a question. Please press star one on your telephone keypad I'd like to pass the conference over to our host Liz Werner head of Investor Relations latest. Please go ahead.

Speaker Change: Good morning, everyone and welcome to Jacksons first quarter 2025 earnings call. Today's remarks may contain forward looking statements, which are subject to risks and uncertainties.

Speaker Change: These statements are not guarantees of future performance or events and are based upon management's current expectations.

Speaker Change: <unk> filings with the SEC provide details on important factors that may cause actual results or events to differ materially except as required by law Jackson is under no obligation to update any forward looking statements. If circumstances are management's estimates are opinions should change.

Speaker Change: Today's remarks also refer to certain non-GAAP financial measures. The reconciliation of those measures to the most comparable U S. GAAP figures is included in our earnings release, our financial supplement and earnings presentation, all of which are available on the Investor Relations page of our website at investors <unk> Jackson Dot com.

Operator: All lines be muted during the presentation portion of the call for an opportunity for questions and answers at the end. If you'd like to ask a question, please press star one on your telephone keypad.

2025 earnings call. Today's remarks may contain forward-looking statements which are subject to risks and uncertainties. These statements are not guarantees that future performance or events and are based upon management's current expectations.

Speaker Change: Presenting on today's call are our CEO, Laura pre scoring our CFO, Don Cummings and joining us in the room are our president of Jackson National Life distributors, Scott <unk>, our president and Chief investment Officer of P. P M. Craig Smith, and head of asset liability management, Brian Walter.

Elizabeth Werner: I'd like to pass the conference over to our host, Liz Werner, Head of Investor Relations. Liz, please go ahead.

Elizabeth Werner: Good morning, everyone, and welcome to Jackson's first quarter 2025 earnings call. Today's remarks may contain forward-looking statements, which are subject to risks and uncertainties. These statements are not guarantees of future performance or events and are based upon management's current expectations. Jackson's filings with the SEC provide details on important factors that may cause actual results or events to differ materially. Except as required by law, Jackson is under no obligation to update any forward-looking statements if circumstances or management's estimates or opinions should change.

Jackson's filings with the SEC provide details on important factors that may cause actual results for events to differ materially. Except as required by law, Jackson is under no obligation to update any forward-looking statements of circumstances or management estimates or opinions to change.

Speaker Change: At this time I will turn the call over to our CEO, Laura pre scoring.

Speaker Change: Thank you Liz.

Speaker Change: Good morning, everyone and welcome to our first quarter 2025 earnings call.

Today's remarks also refer to certain non-GAAP financial measures.

Speaker Change: I'll begin by reviewing the quarter's results, including our progress toward achieving our 2025 financial targets, our strong capital position and our ability to manage risk and navigate through periods of market uncertainty.

The reconciliation of those measures to the most comparable U.S. gap figures is included in our earnings release, our financial supplement and earnings presentation, all of which are available on the investor relations page of our website at investors.jaxson.com

Elizabeth Werner: Today's remarks also refer to certain non-GAAP financial measures. The reconciliation of those measures to the most comparable U.S. GAAP figures is included in our earnings release, our financial supplement and earnings presentation, all of which are available on the investor relations page of our website at investors.jackson.com.

Speaker Change: Following my remarks, I'll, then turn it over to our CFO, Dan Cummins to discuss our financial performance in further detail.

Presenting on today's call are our CEO Laura Prieskorn, our CFO Don Cummings.

Speaker Change: Beginning with slide three Jackson strong performance during the first quarter reinforces the resilience of our business and value of Jackson's products.

Don Cummings: and joining us in the room are our President of Jackson National Life Distributors, Scott Romine, our President and Chief Investment Officer of PPM, Craig Smith, and head of asset liability management, Brian Walta. At this time, I'll turn the call over to our CEO , Laura Prieskorn.

Elizabeth Werner: Presenting on today's call are our CEO, Laura Prieskorn, our CFO, Don Cummings, and joining us in the room are our President of Jackson National Life Distributors, Scott Romine, our President and Chief Investment Officer of PPM, Craig Smith, and Head of Asset Liability Management, Brian Walters.

Speaker Change: We delivered solid results across our business with adjusted operating earnings of 376 million a growth of 13% over the previous year.

Thank you Liz. Good morning everyone and welcome to our first quarter 2025 earnings call.

Speaker Change: Given our consistent approach to share repurchase and overall return to shareholders.

Don Cummings: I'll begin by reviewing the quarters results, including our progress toward achieving our 2025 financial targets, our strong capital position, and our ability to manage risk and navigate through periods of market uncertainty.

Speaker Change: Our adjusted operating earnings on a per share basis increased over 20% from a year ago.

Laura Prieskorn: At this time, I'll turn the call over to our CEO, Laura Prieskorn.

Laura Prieskorn: Thank you, Liz.

Speaker Change: Since becoming an independent public company.

Laura Prieskorn: Good morning, everyone. And welcome to our first quarter 2025 earning I'll begin by reviewing the quarter's results, including our progress toward achieving our 2025 financial target. Our strong capital. and our ability to manage risk and navigate through periods of market uncertainty.

Speaker Change: Jackson has returned over $2 billion in capital to shareholders, while expanding our business and maintaining our financial strength.

Speaker Change: Following my remarks, I'll then turn it over to our CFO , Don Cummings, to discuss our financial performance in further detail.

Speaker Change: Beginning with slide 3, Jackson's strong performance during the first quarter reinforces the resilience of our business and value of Jackson's products.

Speaker Change: Our net loss this quarter reflects the impact of third party reinsurance and our modest net hedging results, which Don will discuss shortly.

Laura Prieskorn: Following my remarks, I'll then turn it over to our CFO, Don Cummings, to discuss our financial performance and further Beginning with slide 3, Jackson's strong performance during the first quarter reinforces the resilience of our business and value of Jackson's product. We delivered solid results across our business with adjusted operating earnings of $376 million, a growth of 13% over the previous year. Given our consistent approach to share repurchase and overall return to shareholders. Our adjusted operating earnings on a per share basis increased over 20% from a year ago. Since becoming an independent public company. Jackson has returned over $2 billion in capital to shareholders.

Speaker Change: As a reminder, the results of reinsured business do not impact our statutory capital or free cash flow and have a minimal net impact on shareholders equity.

Speaker Change: Our leading retail annuities business benefited from strong spread income and sales growth across all products compared to the first quarter of 2024.

Speaker Change: Given our consistent approach to share repurchase and overall return to shareholders, our adjusted operating earnings on a per share basis increased over 20% from a year ago.

Speaker Change: First quarter retail annuity sales were over $4 billion.

Speaker Change: Since becoming an independent public company, Jackson has returned over $2 billion in capital to shareholders while expanding our business and maintaining our financial strengths.

Speaker Change: Up more than 9% from a year ago.

Speaker Change: <unk> multi product portfolio positions us well to serve a range of market environments and client needs, which was evident again this quarter.

Don Cummings: Our net loss discordor reflects the impact of the third party reinsurance and our modest net hedging results, which Don will discuss shortly.

Speaker Change: Sales of our variable annuities increased 9% from a year ago to $2 $7 billion.

Speaker Change: Notably we saw increasing demand for elite access our investment only variable annuity.

Laura Prieskorn: while expanding our business and maintaining our financial Our net loss this quarter reflects the impact of third-party reinsurance and our modest net hedging. As a reminder, the results of reinsured business do not impact our statutory capital or free cash flow and have a minimal net impact on shareholding. Our leading retail annuity benefited from strong spread income and sales. across all products compared to the first quarter of 2020. First quarter retail annuity sales were over $4 billion. up more than 9% from a year. Jackson's multi-product portfolio positions us well to serve a range of market environments and client needs, which was evident again this Sales of our variable annuities increased 9% from a year ago to $2.7 billion.

Speaker Change: Elite access growth benefited from the success of our recently introduced principal guard feature a guaranteed minimum accumulation benefit.

Don Cummings: Our leading retail annuity business benefited from strong spread income and sales growth across all products compared to the first quarter of 2024.

Speaker Change: Sales of variable annuities without living benefits were up 40% from the prior year and accounted for nearly 40% of total variable annuity sales.

Don Cummings: First quarter, retail annuity sales were over $4 billion, up more than 9% from a year ago.

Speaker Change: We continue to believe there is a long term demand for variable annuity products from the millions of Americans, who retire each year seeking both asset growth and guaranteed income.

Don Cummings: Jackson's multi-product portfolio positions us well to serve a range of market environments and client needs, which was evident again this quarter.

Don Cummings: Sales of our variable annuities increased 9% from a year ago to $2.7 billion.

Speaker Change: Jackson successful diversification of its retail annuity sales combined with opportunistic institutional sales resulted in 30% of total first quarter sales coming from traditional variable annuities with lifetime benefits compared to 64% at separation.

Speaker Change: Jackson's Riley product suite is a consistent source of new sales at $1 2 billion for the quarter up 3% from a year ago.

Laura Prieskorn: Notably, we saw increasing demand for elite access, our investment only variable annuity. Elite Access Growth benefited from the success of our recently introduced Principal Guard Guaranteed Minimum Accumulation. Sales of variable annuities without living benefits were up 40% from the prior year and accounted for nearly 40% of total variable annuities. We continue to believe there is a long-term demand for variable annuity products from the millions of Americans who retire each year seeking both asset growth and guaranteed income. Jackson's Successful Diversification of its Retail Annuity Sales Combined with Opportunistic Institutional Sales. Resulted in 30% of total first quarter sales coming from traditional variable annuities with lifetime benefits compared to 64% at separation.

Speaker Change: We expect future growth in our <unk> business to be supported by the 2024 launch of our plus income optional benefit the.

Don Cummings: We continue to believe there is a long-term demand for variable annuity products from the millions of Americans who retire each year, seeking both asset growth and guaranteed income.

Speaker Change: The availability of a Jackson rylan product in New York, and our expanded distribution opportunities through financial professionals at J P. Morgan wealth management.

Speaker Change: <unk> has also led to new and re engaged producer relationships as the product provides advisors and their clients with upside growth potential and downside protection.

Don Cummings: Resulted in 30% of total first quarter sales coming from traditional variable annuities with lifetime benefits compared to 64% at separation.

Speaker Change: <unk> estimates industry <unk> sales to be $65 billion this year.

Speaker Change: And as a top five provider Jackson is well positioned to meet market demand through our product innovation strong distribution and industry leading service to.

Speaker Change: Turning to fixed and fixed indexed annuity sales, we saw meaningful growth compared to a year ago, though at a more moderated level than in the second half of last year.

Don Cummings: We expect future growth in our Ryla business to be supported by the 2024 launch of our Plus Income Optional Benefit

Laura Prieskorn: Jackson's Ryla product suite is a consistent source of new sales at 1.2 billion dollars for the quarter. up 3% from a year ago. We expect future growth in our Ryla business to be supported by the 2024 launch of our Plus Income Optional Benefit. The availability of a Jackson Ryla product in New York and our expanded distribution opportunities through financial professionals at J.P. Morgan Wealth Management. RYLA has also led to new and re-engaged producer relationships as the product provides advisors and their clients with upside growth potential and downside potential. LIMRA estimates industry RILA sales to be $65 billion this year.

Don Cummings: The availability of a Jackson-Ryla product in New York and our expanded distribution opportunities through financial professionals at J.P. Morgan Wealth Management.

Speaker Change: We continue to maintain a disciplined approach to this market and closely monitor market conditions for profitable growth opportunities.

Speaker Change: Abiding, even greater diversification to our retail annuity sales mix.

Speaker Change: Jackson's innovative approach to product our industry, leading service and prudent risk management allow us to provide a broad range of annuity solutions to our distribution partners.

Don Cummings: Limra estimates industry Rila sales to be $65 billion this year, and as a top five provider, Jackson is well positioned to meet market demand through our product innovation, strong distribution, and industry leading service.

Speaker Change: Focusing on emerging distribution channels, we believe fee based advisory business is expanding the overall market for annuity products. We continue to see sales momentum within this channel driven by our strong value proposition and beneficial digital experience, which help advisors to include annuities and <unk>.

Don Cummings: Turning to fixed and fixed indexed annuity sales, we saw meaningful growth compared to a year ago, though at a more moderated level than in the second half of last year.

Laura Prieskorn: And as a top five provider, Jackson is well-positioned to meet market demand through our product innovation, strong distribution, and industry-leading services. Turning to fixed and fixed index annuity sales, we saw meaningful growth compared to a year ago, though at a more moderated level than in the second half of last year. We continue to maintain a disciplined approach to this market and closely monitor market conditions for profitable growth opportunities. Providing even greater diversification to our retail annuity. Jackson's innovative approach to product, our industry-leading service, and prudent risk management allow us to provide a broad range of annuity solutions to our distribution partners.

Speaker Change: Their clients comprehensive financial plans in.

Speaker Change: In the first quarter Jackson's advisory sales increased 28% over the first quarter of 2024.

Don Cummings: We continue to maintain a disciplined approach to this market and closely monitor market conditions for profitable growth opportunities, providing even greater diversification to our retail annuity sales mix.

Speaker Change: Over the 12 months ending in March 2025 advisory sales are at an annual run rate of more than $1 billion.

Don Cummings: Jackson's innovative approach to product our industry leading service in prudent risk management allow us to provide a broad range of annuity solutions to our distribution partners.

Speaker Change: During the first quarter of 2025.

Speaker Change: Our healthy and profitable book of business generated excess capital and resulted in an estimated 585% RBC.

Speaker Change: Distributions from our operating company Jackson National life provide.

Don Cummings: We continue to see sales momentum within this channel driven by our strong value proposition and beneficial digital experience which help advisors to include in newities in their clients' comprehensive financial plans.

Speaker Change: Provided $240 million in cash to the holding company.

Laura Prieskorn: Focusing on Emerging Distribution Channels. We believe fee-based advisory business is expanding the overall market for annuity products. We continue to see sales momentum within this channel, driven by our strong value proposition and beneficial digital experience, which help advisors to include annuities in their client's comprehensive financial plan. In the first quarter, Jackson's advisory sales increased 28% over the first quarter of 2024. Over the 12 months ending in March 2025, advisory sales are at an annual run rate of more than $1 billion. during the first quarter of 2025. Our healthy and profitable book of business generated excess capital and resulted in an estimated 585% RBI.

Speaker Change: Our steady approach to periodic distributions combined with excess holding company liquidity highlights our capital strength and reinforces our confidence in achieving our 2025 financial targets.

Don Cummings: In the first quarter, Jackson's advisory sales increased 28% over the first quarter of 2024.

Speaker Change: Turning to slide four you can see we are off to a strong start having returned over $230 million to common shareholders.

Don Cummings: Over the 12 months ending in March 2025, advisory sales are at an annual run rate of more than $1 billion.

Speaker Change: While maintaining more than $600 million in holding company liquid assets.

Don Cummings: During the first quarter of 2025, our Healthy and Profitable Book of Business generated access capital and resulted in an estimated 585% RBC.

Speaker Change: We look forward to completing our fifth consecutive year of delivering on our financial targets, while positioning the company for long term profitability.

Don Cummings: Distributions from our operating company, Jackson National Life, provided $240 million in cash to the hauling company.

Speaker Change: Additionally, we continue to view a cash dividend as a valuable stream of sustainable capital return and yesterday announced our board's approval of a second quarter cash dividend of <unk> 80 per common share.

Don Cummings: Our steady approach to periodic distributions combined with access holding company liquidity highlights our capital strength and reinforces our confidence in achieving our 2025 financial targets.

Laura Prieskorn: Distributions from our operating company, Jackson National Life, provided $240 million in cash to the holding company. Our Steady Approach to Periodic Distribution. Combined with excess holding company liquidity highlights our capital strength and reinforces our confidence in achieving our 2025 financial goals. Turning to slide 4, you can see we are off to a strong start, having returned over $230 million to common shareholders. while maintaining more than $600 million in holding company liquid. We look forward to completing our fifth consecutive year of delivering on our financial targets while positioning the company for long-term profitability.

Speaker Change: Importantly, <unk>.

Speaker Change: <unk> resilient capital hedging strategy and risk management discipline have allowed us to manage through the recent period of market volatility with confidence.

Don Cummings: Turning to slide 4, you can see we are off to a strong start having returned over $230 million to common shareholders while maintaining more than $600 million in holding company liquid assets.

Speaker Change: We also believe that the current environment reinforces the importance of providing security to Americans planning for their retirement.

Speaker Change: Advisors are increasingly seen annuities as a valuable tool in delivering this security for their clients a powerful illustration of this dynamic.

Don Cummings: We look forward to completing our fifth consecutive year of delivering on our financial targets while positioning the company for long-term profitability.

Jackson: Jackson's focus on the annuity industry and delivering flexible protection and income oriented solutions is highly valued during times of market uncertainty and we remain committed to serving our distribution partners and their clients.

Don: With that I'll turn the call over to Don.

Laura Prieskorn: Additionally, we continue to view a cash dividend as a valuable stream of sustainable capital return and yesterday announced our board's approval of a second quarter cash dividend of $0.80 per common share. Importantly, Jackson's resilient capital, hedging strategy, and risk management discipline have allowed us to manage through the recent period of market volatility.

Don Cummings: Importantly, Jackson's resilient capital, hedging strategy and risk management discipline have allowed us to manage through the recent period of market volatility with confidence.

Don: Thank you Laura I'll begin on slide five with our first quarter 2025 consolidated financial results.

Don: Adjusted operating earnings of $376 million were up 13% over the first quarter of last year.

Don Cummings: We also believe that the current environment reinforces the importance of providing security to Americans planning for their retirement.

Don: This significant increase was primarily due to higher earnings on spread products, which benefited from gains in net investment income primarily driven by the growth of our <unk> and fixed annuity blocks as well as higher yields on our bond portfolio.

Don Cummings: Advisors are increasingly seeing annuities as a valuable tool in delivering this security for their clients, a powerful illustration of this dynamic.

Laura Prieskorn: We also believe that the current environment reinforces the importance of providing security to Americans planning for their retirement. Advisors are increasingly seeing annuities as a valuable tool in delivering the security for their clients.

Speaker Change: Jackson's focus on the annuity industry and delivering flexible protection and income oriented solutions is highly valued during times of market uncertainty and we remain committed to serving our distribution partners and their clients.

Don: Our high quality conservative investment portfolio supporting the spread product business is well positioned with diversification and strong credit quality a theme throughout the portfolio.

Laura Prieskorn: Powerful illustration of this dynamic. Jackson's Focus on the Annuity Industry and Delivering Flexible Protection and Income-Oriented Solutions. We are highly valued during times of market uncertainty, and we remain committed to serving our distribution partners and their customers.

Speaker Change: With that, I'll turn the call over to Don. Thank you, Laura. I'll begin on slide five with our first quarter 2025 Consolidated Financial Results.

Don: The exposure of our portfolio to commercial office loans and below investment grade Securities.

Don: Less than 2% and 1% respectively.

Don Cummings: Adjusted operating earnings of $376 million were up 13% over the first quarter of last year.

Don: The appendix of our earnings presentation provides additional information on our investment portfolio.

Don Cummings: With that, I'll turn the call over to Don. Thank you, Laura. I'll begin on slide five with our first quarter 2025 consolidated financial results. Adjusted operating earnings of $376 million were up 13% over the first quarter of last This significant increase was primarily due to higher earnings on spread products. which benefited from gains in net investment income, primarily driven by the growth of our RILA and Fixed Annuity Board. as well as higher yields on our bond. Our high-quality, conservative investment portfolio supporting the spread product business is well-positioned, with diversification and strong credit quality a theme throughout the portfolio.

Don: Before turning to notable items in the quarter I want to highlight the strong and growing return on a per common share book value.

Don: The $231 million of capital return during the quarter led to a decrease of $132 million and adjusted book value attributable to common shareholders from year end 2024. However.

Don Cummings: Our high-quality, conservative investment portfolio supporting the spread product business is well-positioned with diversification and strong credit quality, a theme throughout the portfolio.

Don: However, the corresponding reduction in our diluted share count from buyback activity drove a 2% increase in book value on a diluted share basis to $152 84.

Don Cummings: The exposure of our portfolio to commercial office loans and below investment grade securities is less than 2% and 1% respectively.

Don: Adjusted operating return on common equity for the quarter increased 160 basis points to 13, 6% from 12% in the first quarter of 2024 slide six outlines the notable items included in adjusted operating earnings.

Don Cummings: The appendix of our earnings presentation provides additional information on our investment portfolio.

Don Cummings: The exposure of our portfolio to commercial office loans and below investment grade securities is less than 2% and 1% respectively.

Don Cummings: Before turning to notable items in the quarter, I want to highlight the strong and growing return on our Pruer Common Sharebook value.

Don: Reported adjusted operating earnings per share were $5 10 for the current quarter adjusting for 10 cents of notable items and the difference in tax rates from our 15% guidance earnings per share were $5 20 for the current quarter up 25% from $4 16.

Don Cummings: The appendix of our earnings presentation provides additional information on our investment plan. Before turning to notable items in the quarter, I want to highlight the strong and growing return on our per common share book. The $231 million of capital return during the quarter led to a decrease of $132 million in adjusted book value attributable to common shareholders from year-end 2021. However, the corresponding reduction in our diluted share count from buyback activity drove a 2% increase in book value on a diluted share basis to $152.84. Adjusted Operating Return on Common Equity for the quarter increased 160 basis points to 13.6% from 12% in the first quarter of 2024.

Don Cummings: The $231 million of capital return during the quarter led to a decrease of $132 million in adjusted book value attributable to common shareholders from year in 2024.

Don Cummings: However, the corresponding reduction in our diluted share count from buyback activity drove a 2% increase in book value on a diluted share basis to $152.84.

Don: In the prior year's first quarter. This strong improvement was primarily due to the growth and spread income noted earlier as well as a reduction in diluted share count from common share repurchase activity the.

Don Cummings: Adjusted operating return on common equity for the quarter increased 160 basis points to 13.6% from 12% in the first quarter of 2024.

Don: The only notable item for the quarter was <unk> 11 negative from limited partnership results coming in modestly below our 10% long term assumption.

Don Cummings: Slide 6 outlines the notable items included in adjusted operating earnings.

Don: On slide seven we focus on the diverse new business profile of our retail annuity segment illustrated by growth of 9% from the first quarter of 2024, our rival product delivered first quarter sales of $1 2 billion supporting further diversification in our topline growth as Laura mentioned.

Don Cummings: reported adjusted operating earnings per share were $5.10 for the current quarter.

Don Cummings: Adjusting for 10 cents of notable items and the difference in tax rates from our 15% guidance, earnings per share were $5.20 for the current quarter, up 25% from $4.16 in the prior years first quarter.

Don Cummings: Slide 6 outlines the notable items included in Adjusted Operating Earnings. Reported adjusted operating earnings per share were $5.10 for the current quarter. Adjusting for $0.10 of notable items and the difference in tax rates from our 15% guidance, earnings per share were $5.20 for the current quarter, up 25% from $4.16 in the prior year's first quarter. This strong improvement was primarily due to the growth in spread income noted earlier, as well as a reduction in diluted share count from common share repurchase activity. The only notable item for the quarter was an $0.11 negative from limited partnership results coming in modestly below our 10% long-term assumption.

Don: Sales of variable annuities remained strong growing 9% from the first quarter of last year. During the first quarter. We also remain committed to producing spread product sales and delivered $174 million of fixed and fixed index annuity sales in the quarter.

Don Cummings: This strong improvement was primarily due to the growth and spread income noted earlier, as well as a reduction in diluted share count from common share repurchase activity.

Don: Our overall sales mix remains capital efficient during the quarter and this stability provides the opportunity to continue allocating some capital towards spread products as we further diversify our business going forward. We are pleased with the diversity of our new business mix since becoming an independent public company.

Don Cummings: On Slide 7, we focus on the diverse new business profile of our retail annuity segment illustrated by growth of 9% from the first quarter of 2024. Our Ryla product delivered first quarter sales of $1.2 billion.

Don: Turning to net flows the sales we generated in <unk> and other spread products translated to $1 3 billion.

Don Cummings: On slide 7, we focus on the diverse new business profile of our retail annuity segment, illustrated by growth of 9% from the first quarter of 2024. Our Ryla product delivered first quarter sales of $1.2 billion. As Laura mentioned, sales of variable annuities remain strong, growing 9% from the first quarter of last year. During the first quarter, we also remained committed to producing spread product sales and delivered $174 million of fixed and fixed-index annuity sales in the quarter. Our overall sales mix remained capital efficient during the quarter, and this stability provides the opportunity to continue allocating some capital towards spread products as we further diversify our business going forward.

Supporting further diversification in our top line growth.

Don: Of non variable annuity net flows in the first quarter. These net flows provide valuable economic diversification and hedging efficiency benefits.

Don Cummings: As Laura mentioned, sales of variable annuities remain strong, growing 9% from the first quarter of last year During the first quarter, we also remain committed to producing spread product sales and delivered $174 million of fixed and fixed index annuity sales in the quarter

Don: As we discussed last quarter variable annuity net flows have been elevated in recent quarters, reflecting the healthy money. This profile of our book the ageing of policyholders and large pass sales years coming out of the surrender period.

Don Cummings: Our overall sales mix remained capital efficient during the quarter, and this stability provides the opportunity to continue allocating some capital toward spread products as we further diversify our business going forward.

Don: In the current quarter, the all in surrender and benefit rate, including partial withdrawals in death benefits declined 60 basis points from the fourth quarter of 2024.

Don Cummings: We are pleased with the diversity of our new business mix since becoming an independent public company.

Don: Our experience indicates that surrenders tend to decline during down equity markets as benefits become more in the money.

Don Cummings: Turning to net flows, the sales we generated in Ryla and other spread products translated to $1.3 billion of non-verbal annuity net flows in the first quarter. These net flows provide valuable economic diversification and hedging efficiency benefits.

Don: Looking at pre tax adjusted operating earnings for our segments on slide eight.

Don Cummings: We are pleased with the diversity of our new business mix since becoming an independent public. Turning to net flows, the sales we generated in RILA and other spread products translated to $1.3 billion of non-bearable annuity net flows in the first quarter. These net flows provide valuable economic diversification and hedging efficiency benefits. As we discussed last quarter, variable annuity net flows have been elevated in recent quarters. Reflecting the healthy moneyness profile of our book, the aging of policyholders, and large past sales years coming out of the surrender In the current quarter, the all-in surrender and benefit rate, including partial withdrawals and death benefits.

Don: Continued positive environment for spread products was offset by higher general and administrative expenses in our retail annuities segment compared to the first quarter of last year, primarily a result of seasonality and compensation expense.

Don Cummings: As we discussed last quarter, variable annuity net flows have been elevated in recent quarters, reflecting the healthy money and profile of our book, the aging of policyholders in large past sales years coming out of the surrender period.

Don: Results for retail annuities were down from the fourth quarter of last year, primarily because of declines in average variable annuity AUM due to lower equity markets and lower spread income due in part to lower levels of limited partnership income in the current quarter.

Don Cummings: In the current quarter, the all-in surrender and benefit rate, including partial withdrawals and death benefits, declined 60 basis points from the fourth quarter of 2024.

Don: Jacksons earnings power is supported by the level of assets under management is growing non variable annuity net flows and strong separate account returns have built our average retail annuity AUM to $246 billion.

Don Cummings: Our experience indicates that surrenders tend to decline during down equity markets as benefits become more in the money.

Don Cummings: Looking at pre-tax adjusted operating earnings for our segments on slide 8, a continued positive environment for spread products was offset by higher general and administrative expenses in our retail annuity segment compared to the first quarter of last year, primarily a result of seasonality and compensation expense.

Don Cummings: declined 60 basis points from the fourth quarter of 2024. Our experience indicates that surrenders tend to decline during down equity markets as benefits become more in the money. Looking at pre-tax adjusted operating earnings for our segments on slide 8, a continued positive environment for spread products was offset by higher general and administrative expenses in our retail annuities segment compared to the first quarter of last year, primarily a result of seasonality and compensation. Results for retail annuities were down from the fourth quarter of last year, primarily because of declines in average variable annuity AUM due to lower equity markets and lower spread income due in part to lower levels of limited partnership income in the current quarter.

Don: Up from $242 billion in the first quarter of 2024.

Don: For our institutional segment pre tax adjusted operating earnings were down from the first quarter of last year, reflecting lower spread income and were broadly in line with the fourth quarter of last year.

Don Cummings: Results for retail annuities were down from the fourth quarter of last year, primarily because of declines and average variable nudity AUM due to lower equity markets, and lower spread income due in part to lower levels of limited partnership income in the current quarter.

Don: Our higher level of new business activity. In 2024 has continued into 2025, and we will maintain our opportunistic approach in the institutional marketplace.

Don: Our closed block segment reported pretax adjusted operating earnings that were improved from the first quarter of last year due to higher net investment income.

Don Cummings: Jackson's earnings power is supported by the level of assets under management, as growing non-variable annuity net flows and strong separate account returns have built our average retail annuity AUM.

Don: Results were up sequentially due to the assumptions review impacts on pre tax adjusted operating earnings in the fourth quarter of last year.

Don Cummings: to $246 billion, up from $242 billion in the first quarter of 2024.

Don Cummings: Jackson's earnings power is supported by the level of assets under management as growing non-variable annuity net flows and strong separate account returns have built our average retail annuity AUM to $246 billion, up from $242 billion in the first quarter of 2024. For our institutional segment, pre-tax adjusted operating earnings were down from the first quarter of last year, reflecting lower spread income, and were broadly in line with the fourth quarter of last year. Our higher level of new business activity in 2024 has continued into 2025, and we will maintain our opportunistic approach in the institutional market.

Don: Slide nine includes a waterfall comparison of our first quarter pre tax adjusted operating earnings of $442 million to the GAAP pre tax loss attributable to Jackson financial of $23 million.

Don Cummings: For our institutional segment, pre-tax-adjusted operating earnings were down from the first quarter of last year, reflecting lower spread income and were broadly in line with the fourth quarter of last year.

Don: Our hedging program reported a consolidated net hedge loss of $134 million in the first quarter.

Don Cummings: Our higher level of new business activity in 2024 has continued into 2025 and we will maintain our opportunistic approach in the institutional marketplace.

Don: Our move to a more economic hedging approach in 2024 has clearly provided more stability in our non operating results and capital generation, which has continued into 2025.

Don Cummings: Our close-block segment reported pre-tax-adjusted operating earnings that were improved from the first quarter of last year due to higher net investment income.

Don: Our hedging program is supported by a stable stream of guarantee benefit fees that are assessed on the benefit base rather than account value. This approach provides stability to the guarantee fees even in periods when markets decline.

Don Cummings: Results were up sequentially due to the assumptions review impacts on pre-tax-adjusted operating earnings in the fourth quarter of last year.

Don Cummings: Our closed block segment reported pre-tax adjusted operating earnings that were improved from the first quarter of last year due to higher net investment in Results were up sequentially due to the assumptions review impacts on pre-tax adjusted operating earnings in the fourth quarter of last year. Slide 9 includes a waterfall comparison of our first quarter pre-tax adjusted operating earnings of $442 million to the GAAP pre-tax loss attributable to Jackson Financial of $23 million. Our hedging program reported a consolidated net hedge loss of $134 million in the first quarter. Our move to a more economic hedging approach in 2024 has clearly provided more stability in our non-operating results and capital generation, which has continued into 2024.

Don: Guarantee fees for the first quarter were zero point $8 billion.

Don Cummings: To the GAAP pre tax loss attributable to Jackson financial of $23 million, our hedging program reported a consolidated net hedge loss of $134 million in the first quarter.

Don: And totaled $3 $1 billion over the trailing 12 months.

Don: During the first quarter, our hedge results included a net gain of about $1 billion on hedging assets supporting our variable annuity and <unk> business.

Don Cummings: Our move to a more economic hedging approach in 2024 has clearly provided more stability in our non operating results and capital generation, which has continued into 2025.

Don: This gain was primarily from an interest rate hedges as long term interest rates were down about 30 basis points during the quarter and the gain on equity hedges, reflecting modestly lower equity markets.

Don Cummings: Our hedging program is supported by a stable stream of guarantee benefit fees that are assessed on the benefit base rather than account value.

Don: <unk> in market risk benefits or MRV were driven in part by the same interest rate and equity market movements, leading to a $2 $2 billion offset to the hedging assets gain.

Don Cummings: This approach provides stability to the guarantee fees even in periods when markets decline.

Don Cummings: Guarantee fees for the first quarter were zero point $8 billion.

Don Cummings: Our hedging program is supported by a stable stream of guaranteed benefit fees that are assessed on the benefit base rather than account . This approach provides stability to the guarantee fees, even in periods when markets decline. Guarantee fees for the first quarter were $0.8 billion and totaled $3.1 billion over the trailing 12 months. During the first quarter, our hedge results included a net gain of about $1 billion on hedging assets, supporting our variable annuity and RILA business. This gain was primarily from interest rate hedges, as long-term interest rates were down about 30 basis points during the quarter, and a gain on equity hedges reflecting modestly lower equity margins.

Don: As a reminder, changes in the MRV relate primarily to our variable annuity business and include the impact of equity index implied volatility, which was elevated during the quarter.

Don Cummings: And totaled $3 $1 billion over the trailing 12 months.

Don Cummings: During the first quarter, our hedge results included a net gain of about $1 billion on hedging assets supporting our variable annuity and railroad business.

Don: Changes in implied volatility do not impact our brook re MRV measurement since it's modified GAAP methodology uses a fixed volatility assumption designed to promote balance sheet stability.

Don Cummings: This gain was primarily from an interest rate hedges as long term interest rates were down about 30 basis points during the quarter and the gain on equity hedges, reflecting modestly lower equity markets.

Don: The reserve an embedded derivative gain of $333 million during the first quarter, primarily reflects decreases in Riley reserves, resulting from lower equity markets.

Don Cummings: Changes in market risk benefits or MRV were driven in part by the same interest rate and equity market movements, leading to a $2 $2 billion offset to the hedging assets gain.

Don: The railroad business continues to provide an economic equity risk offset to our variable annuity guarantee business, which results in hedging efficiencies.

Don Cummings: As a reminder, changes in the MRV relate primarily to our variable annuity business and include the impact of equity index implied volatility, which was elevated during the quarter.

Don Cummings: Changes in Market Risk Benefits, or MRB, were driven in part by the same interest rate and equity market movements, leading to a $2.2 billion offset to the hedging assets gained. As a reminder, changes in the MRB relate primarily to our variable annuity business and include the impact of equity index implied volatility, which was elevated during the quarter. Changes in implied volatility do not impact our Brook-Ree MRB measurement since its modified gap methodology uses a fixed volatility assumption designed to promote balance sheet stability. The Reserve and Embedded Derivative Gain of $333 million during the first quarter primarily reflects decreases in RILA reserves resulting from lower equity markets.

Don: We believe the first quarter results demonstrate that our hedging program continues to be effective in improving the stability of our capital generation and managing the economic risks of our business.

Don Cummings: Changes in implied volatility do not impact our brook re MRV measurement since it's modified GAAP methodology uses a fixed volatility assumption designed to promote balance sheet stability.

Don: Slide 10 highlights our capital generation and free cash flow for the quarter.

Don: As previously discussed Jackson adheres to and earn it then payout philosophy for capital return.

Don Cummings: The reserve an embedded derivative gain of $333 million during the first quarter, primarily reflects decreases in Riley reserves, resulting from lower equity markets.

Don: This philosophy is built upon three pillars, the generation of free capital, where we earn it that.

Don: The creation of free cash flow, where we pay it and ultimately the return of capital to our common shareholders.

Don Cummings: The <unk> business continues to provide an economic equity risk offset to our variable annuity guarantee business, which results in hedging efficiencies.

Don: After tax statutory capital generation was $441 million in the first quarter of 2025. We believe this metric offers helpful insight into the underlying strength of our business and provides the foundation for making capital allocation decisions about future organic growth pursuing <unk>.

Don Cummings: We believe the first quarter results demonstrate that our hedging program continues to be effective in improving the stability of our capital generation and managing the economic risks of our business.

Don Cummings: The RYLA business continues to provide an economic equity risk offset to our variable annuity guarantee. which results in hedging efficient. We believe the first quarter results demonstrate that our hedging program continues to be effective in improving the stability of our capital generation and managing the economic risks of our business. Slide 10 highlights our capital generation and free cash flow for the As previously discussed, Jackson adheres to an earn-it-then-pay-it philosophy for capital return. This philosophy is built upon three pillars. The generation of free capital, where we earn it, the creation of free cash flow, where we pay it, and ultimately, the return of capital to our common shareholders.

Don Cummings: Slide 10 highlights our capital generation and free cash flow for the quarter.

Don: T Jake inorganic opportunities and returning capital to shareholders.

Don Cummings: As previously discussed Jackson adheres to and earn it then payout philosophy for capital return.

Don: Free capital generation was $407 million, reflecting the change in required capital or cow, resulting from our strong and diversified new business results during the quarter.

Don Cummings: This philosophy is built upon three pillars, the generation of free capital, where we earn it.

Don Cummings: The creation of free cash flow, where we pay it and ultimately the return of capital to our common shareholders.

Don: Free capital generation represents excess capital that is available to support cash distributions to the holding company subject to regulatory considerations and desired RBC ratio levels at the operating company.

Don Cummings: After tax statutory capital generation was $441 million in the first quarter of 2025. We believe this metric offers helpful insight into the underlying strength of our business and provides the foundation for making capital allocation decisions about future organic growth pursuing strategic.

Don: With the strong start to the year free capital generation is on pace to exceed the $1 billion plus expectation for full year 2025, we communicated last quarter.

Don Cummings: After Tax Statutory Capital Generation was $441 million in the first quarter of 2025. We believe this metric offers helpful insight into the underlying strength of our business and provides the foundation for making capital allocation decisions about future organic growth, pursuing strategic inorganic opportunities, and returning capital to shareholders. Pre-capital generation was $407 million, reflecting the change in required capital, or CAL, resulting from our strong and diversified new business results during the quarter. Free capital generation represents excess capital that is available to support cash distributions to the holding company subject to regulatory considerations and desired RBC ratio levels at the operating With the strong start to the year, free capital generation is on pace to exceed the $1 billion plus expectation for full year 2025.

Don: We believe this leaves us well positioned to continue to deliver on our strategic and operational objectives as well as our capital return targets for 2025, even when considering recent market volatility free cash flow grew substantially in the current quarter once again illustrating the stability of our capital generation.

Don Cummings: T Jake inorganic opportunities and returning capital to shareholders.

Don Cummings: Free capital generation was $407 million.

Don Cummings: Reflecting the change in required capital or cow, resulting from our strong and diversified new business results during the quarter.

Don Cummings: Free capital generation represents excess capital that is available to support cash distributions to the holding company subject to regulatory considerations and desired RBC ratio levels at the operating company.

Don: In the first quarter of 2025, approximately 60% of free capital generation or $240 million was distributed to J F. Five which brings our trailing 12 month total to nearly $1 1 billion.

Don Cummings: With the strong start to the year free capital generation is on pace to exceed the $1 billion plus expectation for full year 2025, we communicated last quarter.

Don: After covering expenses and other cash flow items at the holding company, the resulting free cash flow of $213 million in the quarter brought the trailing 12 month total to nearly $1 billion.

Don Cummings: We believe this leaves us well positioned to continue to deliver on our strategic and operational objectives as well as our capital return targets for 2025, even when considering recent market volatility free cash flow grew substantially in the current quarter once again illustrating the stability of our capital generation.

Don: Let me just reiterate this over the last 12 months, we've distributed $1 $1 billion to the holding company and generated free cash flow of $960 million.

Don Cummings: We communicated last quarter. We believe this leaves us well positioned to continue to deliver on our strategic and operational objectives, as well as our capital return targets for 2025, even when considering recent market volatility. Free cash flow grew substantially in the current quarter, once again illustrating the stability of our capital generation. In the first quarter of 2025, approximately 60% of free capital generation, or $240 million, was distributed to JFI, which brings our trailing 12-month total to nearly $1.1 billion. After covering expenses and other cash flow items at the holding company, the resulting free cash flow of $213 million in the quarter brought the trailing 12-month total to nearly $1 billion.

Don: Very strong result.

Don: The outcome of our strong free capital generation and growing free cash flow allowed us to return $231 million to common shareholders in the quarter up 44% from last year's first quarter on a per diluted share basis.

Don Cummings: In the first quarter of 2025, approximately 60% of free capital generation or $240 million was distributed to <unk>, which brings our trailing 12 month total to nearly $1 1 billion.

Don: On a trailing 12 month basis, we have returned nearly $700 million and we are highly confident in our ability to meet our full year 2025 capital return target.

Don Cummings: After covering expenses and other cash flow items at the holding company, the resulting free cash flow of $213 million in the quarter brought the trailing 12 month total to nearly $1 billion.

Don: Overall these results highlight Jackson strong capital generation profile and stable cash distributions to <unk>, which have enhanced value for our shareholders.

Don Cummings: Let me just reiterate this over the last 12 months, we've distributed $1 $1 billion to the holding company and generated free cash flow of $960 million.

Don: Slide 11 summarizes our formidable capital and liquidity position for the quarter.

Don Cummings: A very strong result.

Don Cummings: The outcome of our strong free capital generation and growing free cash flow allowed us to return $231 million to common shareholders in the quarter up 44% from last year's first quarter on a per diluted share basis on a trailing 12 month basis, we have returned nearly 700 million.

Don: The profitability of our in force business driven by fee income from our variable annuity based contract and growing spread based earnings provided statutory capital generation of $441 million.

Don Cummings: Let me just reiterate. Over the last 12 months, we've distributed $1.1 billion to the holding company and generated free cash flow of $960 million. A very strong result. The outcome of our strong free capital generation and growing free cash flow allowed us to return $231 million to common shareholders in the quarter, up 44% from last year's first quarter on a per diluted share basis. On a trailing 12-month basis, we have returned nearly $700 million, and we are highly confident in our ability to meet our full year 2025 capital return target. Overall, these results highlight Jackson's strong capital generation profile and stable cash distributions to JFI, which have enhanced value for our shareholders.

Don: During the first quarter.

Don: The current quarter capital generation includes a tax benefit driven by utilization of net operating losses and additional admitted deferred tax assets as we have discussed in prior calls we plan to take smaller periodic distributions from Jackson National life and during the first quarter, we distributed 240.

Don Cummings: And we are highly confident in our ability to meet our full year 2025 capital return target.

Don Cummings: Overall these results highlight Jackson strong capital generation profile and stable cash distributions to <unk>, which have enhanced value for our shareholders.

Don: <unk>.

Don: After accounting for the impact of this distribution and the related reduction in deferred tax asset and miscibility Jackson's total adjusted capital or Tac increased and ended the quarter at $5 2 billion.

Don Cummings: Slide 11 summarizes our formidable capital and liquidity position for the quarter.

Don Cummings: The profitability of our in force business driven by fee income from our variable annuity based contract and growing spread based earnings provided statutory capital generation of $441 million during the first quarter.

Don: The required capital at Jackson National Life has continued to remain stable as was apparent in our first quarter results with estimated Cal slightly higher reflecting our diversified new business activity or.

Don Cummings: Slide 11 summarizes our formidable capital and liquidity position for the quarter. The profitability of our Enforce business, driven by fee income from our variable annuity-based contract and growing spread-based earnings, provided statutory capital generation of $441 million during the first quarter. The current quarter capital generation includes a tax benefit driven by utilization of net operating losses and additional admitted deferred tax assets. As we have discussed in prior calls, we plan to take smaller, periodic distributions from Jackson National Life, and during the first quarter, we distributed $240 million. After accounting for the impact of this distribution and the related reduction in deferred tax asset admissibility, Jackson's total adjusted capital, or TAC, increased and ended the quarter at $5.2 billion.

Don Cummings: The current quarter capital generation includes a tax benefit driven by utilization of net operating losses and additional admitted deferred tax assets as we have discussed in prior calls we plan to take smaller periodic distributions from Jackson National life and during the first quarter, we distributed 240.

Don: Our estimated RBC ratio was up from the fourth quarter of 2024% to 585% and remains well above our minimum of 425%.

Don: We believe Jackson is operating from a position of strength, considering the elevated market volatility and macro environment experienced since the end of the first quarter.

Don Cummings: After accounting for the impact of this distribution and the related reduction in deferred tax asset admissibility Jackson's total adjusted capital or Tac increased and ended the quarter at $5 2 billion.

Don: During the first quarter of 2025 Brook re continued to operate as expected and we did see a modest increase in equity from our year end level of $2 1 billion.

Don Cummings: Required capital at Jackson National Life has continued to remain stable as was apparent in our first quarter results with estimated Cal slightly higher reflecting our diversified new business activity or.

Don: <unk> capitalization remains well above our minimum operating capital level, and our risk management framework, which reflects a variety of deep tail scenarios.

Don Cummings: Our estimated RBC ratio was up from the fourth quarter of 2024% to 585% and remains well above our minimum of 425%.

Don: During our last earnings call, we committed to sharing any capital contributions to or distributions of capital from Brook re and we can confirm that we did not take either of those actions with Brooke rate during the quarter.

Don Cummings: Required capital at Jackson National Life has continued to remain stable, as was apparent in our first quarter results, with estimated Cal slightly higher, reflecting our diversified new business activity. Our estimated RBC ratio was up from the fourth quarter of 2024 to 585% and remains well above our minimum of 424. We believe Jackson is operating from a position of strength, considering the elevated market volatility and macro environment experienced since the end of the first quarter. During the first quarter of 2025, Brooke Rea continued to operate as expected, and we did see a modest increase in equity from our year-end level of $2.1 billion.

Don Cummings: We believe Jackson is operating from a position of strength, considering the elevated market volatility and macro environment experienced since the end of the first quarter.

Don: Going forward, we will continue to manage brook re on a self sustaining basis, given the long term nature of its liabilities.

Don Cummings: During the first quarter of 2025 Brook re continued to operate as expected and we did see a modest increase in equity from our year end level of $2 1 billion.

Don: Our holding company cash and highly liquid asset position at the end of the quarter was more than $600 million.

Don: Which continues to be above our minimum buffer and provides substantial financial flexibility.

Don Cummings: <unk> capitalization remains well above our minimum operating capital level, and our risk management framework, which reflects a variety of deep tail scenarios.

Don: The modest decline from the year end level was the result of capital returns during the quarter.

Don: Overall, our first quarter 2025 results demonstrate positive momentum in our business and the strength of our balance sheet and capital position.

Don Cummings: During our last earnings call, we committed to sharing any capital contributions to our distributions of capital from Brook re and we can confirm that we did not take either of those actions with Brooke rate during the quarter.

Don Cummings: Brook Rees capitalization remains well above our minimum operating capital level and our risk management framework, which reflects a variety of deep tail scenarios. During our last earnings call, we committed to sharing any capital contributions to or distributions of capital from Brooke Ree, and we can confirm that we did not take either of those actions with Brooke Ree during the quarter. Going forward, we will continue to manage Brook Rea on a self-sustaining basis given the long-term nature of its liability. Our holding company cash and highly liquid asset position at the end of the quarter was more than $600 million, which continues to be above our minimum buffer and provides substantial financial flexibility.

Speaker Change: Before turning the call back to Laura I want to provide some additional context on the performance of our business since the end of the first quarter, considering the market volatility we've seen.

Don Cummings: Going forward, we will continue to manage brook re on a self sustaining basis, given the long term nature of its liabilities.

Speaker Change: During early April we experienced historic levels of market volatility and uncertainty comparable to the levels. We observed during other times of extreme market stress.

Don Cummings: Our holding company cash and highly liquid asset position at the end of the quarter was more than $600 million.

Don Cummings: Which continues to be above our minimum buffer and provides substantial financial flexibility.

Speaker Change: Our hedging program performed well during this period, providing substantial payoffs and stabilizing our equity position at Brook re as.

Don Cummings: The modest decline from the year end level was the result of capital returns during the quarter.

Speaker Change: As we previously communicated periods of heightened volatility combined with major equity market and interest rate shifts can be challenging environments for dynamic hedging programs.

Don Cummings: Overall, our first quarter 2025 results demonstrate positive momentum in our business and the strength of our balance sheet and capital position.

Speaker Change: After ending 2024, and $2 1 billion in equity brokerage saw modest growth in the first quarter and experienced some decline during April due to the heightened level of market volatility.

Speaker Change: Before turning the call back to Laura I want to provide some additional context on the performance of our business since the end of the first quarter, considering the market volatility we've seen.

Don Cummings: The modest decline from the year-end level was the result of capital returns during the quarter. Overall, our first quarter 2025 results demonstrate positive momentum in our business and the strength of our balance sheet and capital position.

Speaker Change: During early April we experienced historic levels of market volatility and uncertainty comparable to the levels. We observed during other times of extreme market stress.

Speaker Change: Importantly, we remain in a very healthy position relative to our risk management framework and minimum operating capital.

Don Cummings: Before turning the call back to Laura, I want to provide some additional context on the performance of our business since the end of the first quarter, considering the market volatility we've seen. During early April, we experienced historic levels of market volatility and uncertainty, comparable to the levels we observed during other times of extreme market Our hedging program performed well during this period, providing substantial payoffs and stabilizing our equity position at Brookree. As we previously communicated, periods of heightened volatility combined with major equity market and interest rate shifts can be challenging environments for dynamic hedging programs. After ending 2024 at $2.1 billion in equity, Brook Re saw modest growth in the first quarter and experienced some decline during April due to the heightened level of market volatility.

Speaker Change: Brook re was initially structured and capitalized to withstand stressful market environments and we are pleased with the performance of our hedging program during April.

Speaker Change: Our hedging program performed well during this period, providing substantial payoffs and stabilizing our equity position at Brook re as.

Speaker Change: Brook read did not require any capital contributions during April and the hard assets at Brook re have increased since its formation.

Speaker Change: As we previously communicated periods of heightened volatility combined with major equity market and interest rate shifts can be challenging environments for dynamic hedging programs.

Speaker Change: <unk> has a long track record of successfully managing through multiple market environments, and we will continue to execute on our strong risk management framework going forward as we discussed on prior calls following the establishment of brokerage <unk>, our capital position and RBC ratio at Jackson National life is much less.

Speaker Change: After ending 2024, and $2 1 billion in equity Brook Rey saw modest growth in the first quarter and experienced some decline during April due to the heightened level of market volatility.

Speaker Change: Importantly, we remain in a very healthy position relative to our risk management framework and minimum operating capital.

Speaker Change: Sensitive to equity market movements.

Speaker Change: This results in the economics at Jackson National life, being more like an asset management business.

Speaker Change: Brook re was initially structured and capitalized to withstand stressful market environments and we are pleased with the performance of our hedging program during April.

Speaker Change: As a result of Brook re the main impact of lower equity markets is on AUM and future capital generation, rather than a large immediate reduction in capital or RBC.

Don Cummings: Importantly, we remain in a very healthy position relative to our risk management framework and minimum operating capital. Brooke Rhee was initially structured and capitalized to withstand stressful market environments, and we are pleased with the performance of our hedging program during April. Brooke Reed did not require any capital contributions during April and the hard assets at Brooke Reed have increased since its formation. Jackson has a long track record of successfully managing through multiple market environments and we will continue to execute on our strong risk management framework going forward. As we discussed on prior calls, following the establishment of Brookery, our capital position and RBC ratio at Jackson National Life is much less sensitive to equity market movement.

Speaker Change: Brook read did not require any capital contributions during April and the hard assets at Brook re have increased since its formation.

Speaker Change: While declines in AUM reduce the level of future capital generation at Jackson National life. It will continue to be materially positive given the size of our in force book profits from our growing <unk> business and our efficient operating platform.

Speaker Change: Jackson has a long track record of successfully managing through multiple market environments, and we will continue to execute on our strong risk management framework going forward as we discussed on prior calls following the establishment of brokerage <unk> our capital.

Speaker Change: From a spread business perspective, our conservative investment portfolio is positioned well for times of volatility with diversification and strong credit quality throughout the portfolio.

Speaker Change: Our position in RBC ratio at Jackson National life is much less sensitive to equity market movements.

Speaker Change: This results in the economics at Jackson National life, being more like an asset management business.

Speaker Change: Lastly, we entered the second quarter of 2025 in a very healthy financial position with significant levels of excess capital our conservative investment portfolio and a strong liquidity position at the holding company, we have a consistent history of prudent pricing and product design, our focus on balance sheet strength and <unk>.

Speaker Change: As a result of Brook re the main impact of lower equity markets is on AUM and future capital generation, rather than a large immediate reduction in capital or RBC.

Don Cummings: This results in the economics at Jackson National Life being more like an asset management business. As a result of Brooke-Ree, the main impact of lower equity markets is on AUM and future capital generation, rather than a large immediate reduction in capital or RBC. While declines in AUM reduce the level of future capital generation at Jackson National Life, it will continue to be materially positive given the size of our Enforce book, profits from our growing Ryla business, and our efficient operating platform. From a spread business perspective, our conservative investment portfolio is positioned well for times of volatility, with diversification and strong credit quality throughout the portfolio.

Speaker Change: While declines in AUM reduce the level of future capital generation at Jackson National life. It will continue to be materially positive given the size of our in force book profits from our growing <unk> business and our efficient operating platform.

Speaker Change: Track record of strong risk management across market environments. We.

Speaker Change: We are well positioned to continue delivering on our strategic and operational objectives as well as our capital return targets for 2025.

Speaker Change: From a spread business perspective, our conservative investment portfolio is positioned well for times of volatility with diversification and strong credit quality throughout the portfolio.

I'll now turn the call back to Laura.

Laura: Thank you Dan our first quarter results are a solid start to the year and we look forward to future opportunities to discuss our progress.

Speaker Change: Lastly, we entered the second quarter of 2025 in a very healthy financial position with significant levels of excess capital our conservative investment portfolio and a strong liquidity position at the holding company, we have a consistent history of prudent pricing and product design, our focus on balance sheet strength and a.

Speaker Change: We remain dedicated to serving financial professionals and their clients with the goal of helping Americans grow and protect their retirement savings and income.

Speaker Change: As always I'd like to recognize the efforts of our associates, whose talent and dedication remain our greatest strength.

Don Cummings: Lastly, we entered the second quarter of 2025 in a very healthy financial position with significant levels of excess capital, a conservative investment portfolio, and a strong liquidity position at the holding. We have a consistent history of prudent pricing and product design, a focus on balance sheet strength, and a track record of strong risk management across market environments. We are well positioned to continue delivering on our strategic and operational objectives, as well as our capital return targets for 2020.

Speaker Change: At this time I will turn the call over to the operator for questions.

Speaker Change: Track record of strong risk management across market environments. We.

Speaker Change: If you would like to ask a question. Please press star followed by one on your telephone keypad. If for any reason you don't like to remove your question. Please press star followed by two again to ask a question Press Star one as a reminder, if you're using a speaker phone. Please remember to pick up your handset before asking a question. We'll pause here briefly is questions registered.

Speaker Change: We are well positioned to continue delivering on our strategic and operational objectives as well as our capital return targets for 2025.

Laura Prieskorn: Now I'll turn the call back to Laura.

Laura Prieskorn: Thank you Dan our first quarter results are a solid start to the year and we look forward to future opportunities to discuss our progress.

Speaker Change: First question is from the line of Sumit come off with Jefferies. Your line is now open.

Laura Prieskorn: We remain dedicated to serving financial professionals and their clients with the goal of helping Americans grow and protect their retirement savings and income.

Sumit: Thanks, Good morning.

Speaker Change: So we've all seen these media reports that have indicated your interest in.

Laura Prieskorn: I'll now turn the call back to Laura. Thank you, Don. Our first quarter results are a solid start to the year, and we look forward to future opportunities to discuss our progress. We remain dedicated to serving financial professionals and their clients with the goal of helping Americans grow and protect their retirement savings and income. As always, I'd like to recognize the efforts of our associates whose talent and dedication remain our greatest.

Laura Prieskorn: As always I'd like to recognize the efforts of our associates, whose talent and dedication remain our greatest strength.

Speaker Change: Potentially acquiring in the annuity business.

Speaker Change: Im not asking you to comment on that of course, you can if you want to.

Laura Prieskorn: At this time I will turn the call over to the operator for questions.

Speaker Change: But just more broadly I was just curious if you could kind.

Speaker Change: Kind of give us your philosophy as it relates to inorganic growth or M&A. Thanks.

Speaker Change: If you would like to ask a question. Please press star followed by one on your telephone keypad. If for any reason you don't like to remove your question. Please press star followed by two again to ask a question Press Star one as a reminder, if you are using a speaker phone. Please remember to pick up your handset before asking a question. We'll pause here briefly is questions registered.

Tony: Good morning, Tony.

Speaker Change: Thank you for the question.

Operator: At this time, I'll turn the call over to the operator. If you would like to ask a question, please press star followed by one on your telephone keypad. If for any reason you would like to remove that question, please press star followed by two. Again, to ask a question, press star one. As a reminder, if you are using a speakerphone, please remember to pick up your handset before asking your question. We will pause here briefly as questions are registered.

Speaker Change: In terms of growth opportunity for us I would share that we have completed successful bolt on acquisitions in the past with like the Georgia reality and John Hancock.

Speaker Change: First question is from the line of Sumit come off with Jefferies. Your line is now open.

Sumit: Thanks, Good morning.

Speaker Change: So we've all seen these media reports that have indicated your interest in.

Speaker Change: All three different transactions.

Speaker Change: And.

Speaker Change: Going forward any opportunity that we would evaluate what you've done in comparison to the value we receive from share buybacks.

Speaker Change: Potentially acquiring in the annuity business I am not asking you to comment on that of course, you can if you want to.

Suneet Kamath: First question is from the line of Suneet Kamath with Jeffreys. Good morning, Suneet. Thank you for the question.

Speaker Change: But just more broadly I was just curious if you could kind.

Speaker Change: Cheap strengthening.

Speaker Change: Kind of give us your philosophy as it relates to inorganic growth or M&A.

Speaker Change: Okay, and then I guess.

Speaker Change: Separate question, you talked about growing the spread based products and as we think about the landscape. It seems like most of the companies that are pursuing a similar strategy.

Tony: Good morning, Tony.

Speaker Change: Thank you for the question.

Speaker Change: In terms of growth opportunity for us I would share that we have completed successful bolt on acquisitions in the past with like the GA.

Speaker Change: Alternative asset management partner.

Speaker Change: In some way shape or form I think you stand out as an exception there. So I was just wondering if you could provide some thoughts on how you think about that strategy.

Speaker Change: Mike and John Hancock.

Speaker Change: All three different transactions.

Speaker Change: Do you think it puts you at a competitive disadvantage relative to some of those peers that have already kind of moved in that direction.

Laura Prieskorn: In terms of growth opportunities for us, I would share that we have completed successful bolt-on acquisitions in the past with Life of Georgia, Realic, and John Hancock, which were all three different transactions. And going forward, any opportunity that we would evaluate would be done in comparison to the value we received from the share buyback or balance sheet strength.

Speaker Change: And.

Speaker Change: Going forward any opportunity that we would evaluate what you've done in comparison to the value we receive from share buybacks.

Speaker Change: Yes. Thank you for that question it.

Speaker Change: Sheet strengthening.

Speaker Change: It is.

Speaker Change: Market that we approach with this plan and the.

Speaker Change: Okay, and then I guess.

Speaker Change: The competitive landscape certainly.

Speaker Change: Separate question, you talked about growing the spread based products and as we think about the landscape. It seems like most of the companies that are pursuing a similar strategy.

Speaker Change: Has become very active.

Speaker Change: Over the last couple of years.

Speaker Change: And we continue to evaluate.

Speaker Change: Alternative asset management partner.

Speaker Change: Competitive.

Speaker Change: <unk>.

Speaker Change: In some way shape or form I think you stand out as an exception there. So just wondering if you could provide some thoughts on how you think about that strategy.

Laura Prieskorn: Okay, and then I guess, separate question, you know, you talked about growing the spread based products. And as we think about the landscape, it seems like most of the companies that are pursuing a similar strategy have a alternative asset management partner in some way, shape or form. I think you stand out as an exception there. So just wondering if you could provide some thoughts on how you think about that strategy? And, you know, do you think it puts you at a competitive disadvantage relative to some of those peers that have already kind of moved in that direction?

Speaker Change: Reprice, our products actively I think as we.

Speaker Change: Can you do move forward, we still think Q.

Speaker Change: <unk>.

Speaker Change: Do you think it puts you at a competitive disadvantage relative to some of those peers that have already kind of moved in that direction.

It is an opportunity to change how we compete in that market.

Don: But as Don stated in his prepared remarks.

Speaker Change: Yeah.

Speaker Change: Yes. Thank you for that question it.

Don: We're continuing to see growth in EM.

Speaker Change: It is.

Speaker Change: Market that we approach with this plan and the.

Don: Spread products.

Don: Well.

Don: We maintain the discipline that we've had in the past and it.

Speaker Change: The competitive landscape.

Speaker Change: Hum.

Don: If opportunities present itself for us to do so.

Speaker Change: It has become very active.

Speaker Change: Over the last couple of years.

Don: The difference in turnkey.

Don: Well, we'll be opened.

Laura Prieskorn: Yeah, thank you for that question. It is a market that we approach with discipline and the competitive landscape certainly has become very active with the growth that you've seen over the last couple of years. We continue to evaluate the competitiveness and reprice our products actively. I think as we, you know, continue to move forward, we stay open to, you know, ideas and opportunities to change how we compete in that market. But as, you know, Don had stated in his prepared remarks, you know, we're continuing to see growth in sales and spread products. And, you know, we'll maintain the discipline that we've had in the past.

Speaker Change: And we continue to evaluate.

Don: What those opportunities are.

Speaker Change: Competitiveness and <unk>.

Don: At this.

Don: Just pointing out first is the name of it.

Speaker Change: We price our products actively I think as we continue to move forward we stay on thank you.

Speaker Change: Sure go ahead.

Don: Okay.

Don: Yes, you can have a follow up I might just add there in terms of.

Don: Spread products, we consider Orion spread product.

Speaker Change: <unk>.

Speaker Change: Ideas and opportunities to change how we compete in that market.

Don: And so you've seen that we've had a fair amount of success there without having to have a relationship like youre, describing we do see that more common on.

Don Cummings: But as Don stated in his prepared remarks.

Don Cummings: We're continuing to see growth in EM.

Don: Traditional kinds of spread products in particular with Mike as and.

Don Cummings: Spread products and.

Don Cummings: Will.

Don Cummings: We maintain the discipline that we've had in the past and Dr.

Don: Fixed index annuities, but we do think we can be very competitive and remain competitive in the wireless space, we've grown that business from essentially zero over the last few years to about $12 million.

Speaker Change: The opportunities present itself for us to do something different.

Don Cummings: Well, we'll be open to it.

Don Cummings: What those opportunities are.

Don: Yeah.

Don Cummings: At this.

Don Cummings: Just pointing out first in the name of it.

Don: Got it if I could just sneak one more and you made an interesting comment in your prepared remarks about fee based advisors selling more annuities.

Speaker Change: Sure go ahead.

Don Cummings: Okay.

Laura Prieskorn: And it's opportunity to present itself for us to do something different. will will be open to what those opportunities are.

Don Cummings: Yes, you can you can then have a follow up I might just add there in terms of.

Don: Just wondering kind of if you can unpack that a little bit what's driving it and how do you structure a product for that type of advisor. Thanks.

Speaker Change: Spread products, we consider arrival spread product.

Speaker Change: And so you've seen that we've had a fair amount of success there without having to have a relationship like youre, describing we do see that more common on the.

Unknown Executive: I'm just going to add there, Suneet. Sure, go ahead. Yeah, you can you can have a follow up.

Don: Yeah. Thank you for that question and then ill.

Scott: Yes, Scott to share remarks about.

Scott: How we approach that market and you know what.

Speaker Change: Traditional kinds of spread products in particular with Mike.

Laura Prieskorn: But I might just add there in terms of, you know, spread products, we consider RILA spread products. And so you've seen that we've had a fair amount of success there without having to have a relationship like you're describing. We do see that more common on the traditional kinds of spread products, in particular with MIGAS and fixed index annuities. But we do think we can be very competitive and remain competitive in the RILA space. We've grown that business from essentially zero over the last few years to about $12 billion in AUM. Got it.

Scott: In terms of the.

Speaker Change: And fixed index annuities, but we do think we can be very competitive and remain competitive in the wireless space, we've grown that business from essentially zero over the last few years to about $12 million.

Scott: Opportunity.

Scott: Yes. Thank you.

Scott: But it's for us it's.

Scott: All about.

Scott: Providing choice to advisors and what's ever in the best interest of the client.

Speaker Change: Yeah.

Scott: Pfizer relationship we're agnostic if they prefer the relationship calls for commission or fee based we want to make sure that we provide an adequate solution a lot of that has been our ability to build out modeling and financial planning tools that fee based advisors use.

Speaker Change: Got it if I could just sneak one more and you made an interesting comment in your prepared remarks about fee based advisors selling more annuities.

Speaker Change: Just wondering kind of if you can unpack that a little bit what's driving it and how do you structure a product for that type of advisor. Thanks.

Speaker Change: Yeah. Thank you for that question and then ill.

Scott: The ability to use all of our products.

Laura Prieskorn: If I could just sneak one more in. You made an interesting comment in your prepared remarks about fee based advisors selling more annuities. Just wondering kind of if you can unpack that a little bit. What's driving it and how do you structure a product for that type of advisor? Yes, thank you for that question.

Scott Romine: Yes, Scott to share remarks about.

Scott: There are fee based or commission wrapper, and it's the growth of the <unk> space as well.

Speaker Change: How we approach that market and you know what.

Speaker Change: In terms of the.

Speaker Change: Opportunity there.

Speaker Change: Yes. Thank you.

Scott: Okay. Thanks for the answers.

Speaker Change: But it's for us it's.

Scott: Okay.

Speaker Change: All about.

Scott Romine: And I'll ask Scott to share remarks about how we've approached that market and, you know, what we see in terms of the opportunity. Yeah, thank you. So the fee-based, for us, it's all about providing choice to advisors. And what's ever in the best interest of the client-advisor relationship. We're agnostic. If they prefer the relationship calls for commission or fee-based, we want to make sure that we provide an adequate solution. A lot of that has been our ability to build out modeling and financial planning tools that fee-based advisors use. It's the ability to use all of our products in either a fee-based or commission wrapper.

Speaker Change: Thank you for your question next question is from the line of Tom Gallagher with Evercore ISI. Your line is now open.

Speaker Change: Providing choice to advisors and what's ever in the best interest of the client.

Scott: Yeah.

Speaker Change: Pfizer relationship we're agnostic if they prefer the relationship calls for commission or fee based we want to make sure that we provide an adequate solution a lot of that has been our ability to build out modeling and financial planning tools that fee based advisors.

Tom Gallagher: Good morning.

Tom Gallagher: Question first question for Don when you mentioned.

Speaker Change: I guess there was some impact on capital in April and Brook re.

Tom Gallagher: But it didn't require a capital contribution.

Tom Gallagher: I guess, we don't know what your target capital level as compared to the $2 1 billion of capital that's there.

Speaker Change: The ability to use all of our products and either fee based or commission wrapper and it's the growth of the <unk> space as well.

Tom Gallagher: So I'm not sure if theres a big buffer.

Tom Gallagher: But maybe can you just dimension, how big of an impact was the capital.

Speaker Change: Okay.

Speaker Change: Okay. Thanks for the answers.

Tom Gallagher: The impact of capital that you saw from April experience was it large modest.

Speaker Change: Sure.

Speaker Change: Thank you for your question next question is from the line of Tom Gallagher with Evercore ISI. Your line is now open.

Tom Gallagher: Somewhere in between.

Scott Romine: And it's the growth of the RIA space as well. Okay, thanks for the answer. Thank you for your question.

Speaker Change: Yeah.

Tom Gallagher: I don't know if you are able to provide any sort of sensitivity relative to the $2 1 billion as you're a good buffer there to think about thanks.

Speaker Change: Good morning question first question for Don when you mentioned.

Speaker Change: I guess there was some impact on capital in April and Brook re.

Tom Gallagher: Okay.

Tom Gallagher: Hey, Tom Thanks for that question so.

Tom Gallagher: Next question is from the line of Tom Gallagher with Evercore ISI. Your line is now open. Good morning.

Speaker Change: It didn't require a capital contribution.

Tom Gallagher: In terms of what we saw in April our broker re I would describe.

Speaker Change: I guess, we don't know what your target capital level as compared to the $2 $1 billion of capital that's there.

Tom Gallagher: It is a fairly modest impact and I think maybe it would be helpful. Just to kind of reiterate some of our.

Tom Gallagher: First question for Don. When you mentioned, I guess there was some impact on capital in April and brokery, but it didn't require a capital contribution. I guess we don't know what your target capital level is compared to the 2.1 billion of capital that's there. So I'm not sure if there's a big buffer. But maybe can you just mention how big of an impact was the capital, the impact of capital that you saw from April experience? Was it large, modest, somewhere in between? And I don't know if you're able to provide any sort of sensitivity relative to the 2.1 billion?

Speaker Change: So I'm not sure if theres a big buffer.

Tom Gallagher: Our disclosures related to brokerage.

Speaker Change: But maybe can you just dimension, how big of an impact was the capital.

Tom Gallagher: In particular, when we capitalize the company.

Speaker Change: The impact of capital that you saw from April experience was it large modest.

Tom Gallagher: In the first quarter of last year.

Tom Gallagher: Total capital will go out $1 9 billion and that included.

Speaker Change: Somewhere in between.

Tom Gallagher: Cash and investments or what we call hard assets of about $700 million.

Speaker Change: I don't know if you are able to provide any sort of sensitivity relative to the $2 1 billion as you're a good buffer there to think about thanks.

Tom Gallagher: And as I mentioned in the prepared remarks other than that initial formation, we've not made any.

Speaker Change: Yeah.

Tom Gallagher: Any capital contributions to or taken any capital out of broke rate and that continues.

Tom: Hey, Tom Thanks for that question so.

Speaker Change: In terms of what we saw in April our broker re I would describe it as a fairly modest impact and I think maybe it would be helpful. Just to kind of reiterate some of our.

Tom Gallagher: Up until now.

Tom Gallagher: Obviously, we did see some impact.

Don Cummings: Is there a good buffer there to think about? Thanks.

Tom Gallagher: In April as I mentioned in the prepared remarks, but.

Tom Gallagher: It was fairly modest in terms of the.

Tom: Our disclosures related to procreate.

Don Cummings: Hey, hey, Tom, thanks for that question. So in terms of what we saw in April at Brookery, I would describe it as, you know, a fairly modest impact. And I think maybe it would be helpful just to kind of reiterate some of our prior disclosures related to Brookery. In particular, you know, when we capitalized the company in the first quarter of last year, we had a, you know, total capital of about $1.9 billion. And that included cash and investments for what we call hard assets of about $700 million. And as I mentioned in the prepared remarks, other than that initial formation, we've not made any capital contributions to or taken any capital out of brookery.

Tom Gallagher: Our level of capitalization and how we think about that and sort of the buffer that we have there is two components that you need to keep in mind.

Tom: In particular, when we capitalize the company.

Tom: In the first quarter of last year, we had a total capital will go out $1 9 billion and that included.

Tom Gallagher: First of all there is the minimum operating capital, which you can think about that as sort of the regulatory.

Tom: Cash and investments or what we call hard assets of about $700 million.

Tom Gallagher: Level of capitalization and it's very similar to and then AIC RBC framework.

Tom: And as I mentioned in the prepared remarks other than that initial formation, we've not made.

Tom: Any capital contributions to or taken any capital out of broke right and that continues.

Tom Gallagher: However, given that we use modified GAAP accounting for brokerage.

Tom Gallagher: Brokerage we have translated.

Tom: Up until now.

Tom: Obviously, we did see some impact.

Tom Gallagher: Some of the components related to market risk.

Tom: In April as I mentioned in the prepared remarks, but.

Tom Gallagher: To a more appropriate metric in and capture something that is similar to that.

Tom: It was fairly modest in terms of the.

Tom Gallagher: The Cte 98 framework that exists on a statutory basis.

Tom: Our level of capitalization and how we think about that in sort of the buffer that we have there is two components that you need to keep in mind.

Don Cummings: And that continues up until till now. Obviously, we did see some impact in April, as I mentioned in the prepared remarks, but was fairly modest. In terms of the level of capitalization and how we think about that and sort of the buffer that we have, there's two components that you need to keep in mind. First of all, there's the minimum operating capital, which you can think about that as sort of the regulatory level of capitalization. And it's very similar to an NAIC RBC framework. However, given that, you know, we use modified gap accounting for brookery, we have translated some of the components related to market risk, you know, to a more appropriate metric, and it captures something that is similar to the CTE 98 framework that exists on a statutory basis.

Tom Gallagher: And then the second.

Tom Gallagher: Component and this is what we focus on probably more than the regulatory because it's capital that's above and beyond the minimum operating capital and that's our internal risk framework.

Tom: First of all there is the minimum operating capital, which you can think about that as sort of the regulatory.

Tom: Level of capitalization and it's very similar to <unk>.

Tom Gallagher: And we designed the framework to ensure that we've got sufficient capital above that minimum level following adverse scenarios and it looks at multiple time frames and then targets maintaining capital.

Tom: And then AIC RBC framework.

Tom: However, given that we use modified GAAP accounting for brokerage.

Tom: Brokerage fee we have translated.

Tom: Some of the components related to market risk.

Tom Gallagher: So that we've got excess capital above the minimum and more than 95% of scenarios and when we initially capitalized broke right. We have disclosed previously that we were above that level kind of closer to the 98 percentile and as of the end of the first quarter.

Tom: To a more appropriate metric in and capture something that is similar to that.

Tom: The Cte 98 framework that exist on a statutory basis.

Tom: And then.

Tom: Component and this is what we focus on probably more than the regulatory because it's capital that's above and beyond the minimum operating capital and that's our internal risk framework.

Tom Gallagher: We're in a much stronger position than we were when we originally capitalized broke right. So thats kind of gives you should give you a sense of how we are.

Tom: And we designed the framework to ensure that we've got sufficient capital above that minimum level following adverse scenarios and it looks at.

Tom Gallagher: Look at capitalization and capital adequacy of broke re we do feel like we have a buffer given this framework of <unk>.

Don Cummings: And then the second component, and this is what we focus on probably more than the regulatory because it's capital that's above and beyond the minimum operating capital. And that's our internal risk framework. And, you know, we designed that framework to ensure that we've got sufficient capital above that minimum level following adverse scenario. And it looks at, you know, multiple timeframes. And it targets maintaining capital, you know, so that we've got excess capital above the minimum in more than 95% of scenarios. And when we initially capitalized Brookery, we had disclosed this previously that we're, we were above that level, kind of closer to the 98th percentile.

Tom Gallagher: Focusing on the regulatory capital and above and beyond that our risk framework capital.

Tom: It'll timeframes and then targets maintaining capital.

Tom Gallagher: That is that is helpful. Don appreciate it.

Tom: So that we've got excess capital above the minimum and more than 95% of scenarios and when we initially capitalized broke right.

Tom Gallagher: My follow up is just on the.

Tom Gallagher: I think it was mentioned statutory capital generation and statutory earnings benefited there was a tax benefit in the current quarter something about the DTA, how big of an impact was that on capital generation in the quarter.

Tom: As disclosed previously that were we were above that level kind of closer to the 98 percentile and as of the end of the first quarter.

Tom: We're in a much stronger position than we were when we originally capitalized broke right. So thats kind of gives you should give you a sense of how we are.

Tom Gallagher: Yes, we haven't quantified that Tom.

Tom Gallagher: Actually there is two things.

Tom: Capitalization and capital adequacy of brokerage, we do feel like we haven't buffer given this framework of.

Tom Gallagher: <unk>.

Tom Gallagher: Taxes for us.

Tom Gallagher: In the first quarter.

Don Cummings: And as of the end of the first quarter, we're in a much stronger position than we were when we originally capitalized Brookery. So that's kind of gives you should give you a sense of how we look at capitalization and capital adequacy of Brookery. We do feel like we have a buffer given this framework of, you know, regulatory capital and above and beyond that, our risk framework capital. That is that is helpful, Don. Appreciate it.

Tom Gallagher: First one is fairly straightforward when our pre tax capital generation increases that allows us to admit more.

Tom: Focusing on the regulatory capital and above and beyond that our risk framework capital.

Tom Gallagher: <unk> admitted DTA and we have about a $1 $3 billion roughly non admitted DTA.

Tom: That is helpful. Don appreciate it.

Speaker Change: My follow up is just on the.

Speaker Change: I think it was mentioned statutory capital generation and statutory earnings benefited there was a tax benefit in the current quarter something about the DTA, how big of an impact was that on capital generation in the quarter.

Tom Gallagher: GNL and so that was about half of the impact and then the other piece was related to.

Tom Gallagher: Being able to utilize Nols.

Don Cummings: The my follow up is just on the I think it was mentioned statutory capital generation and statutory earnings benefited. There was a tax benefit in the current quarter, something about the DTA. How big of an impact was that on capital generation in the quarter? Yeah, we haven't quantified that, Tom. But actually, there's two things that impact taxes for us in the first quarter. The first one is, you know, fairly straightforward. When our pre-tax capital generation increases, that allows us to admit more of our non-admitted DTA. And we have about a $1.3 billion roughly non-admitted DTA at J&L.

Tom Gallagher: Got you. Thank you.

Tom Gallagher: Great. Thank you.

Speaker Change: Yes, we haven't quantified that Tom.

Thank you for your question.

Speaker Change: Next question is from the line of Ryan Krueger with Cape Uw's. Your line is now open.

Speaker Change: Actually there is two things.

Speaker Change: <unk>.

Speaker Change: Taxes for us.

Speaker Change: In the first quarter.

Speaker Change: Okay great.

Speaker Change: First one is fairly straightforward when our pre tax capital generation increases that allows us to admit more of our non admitted DTA and we have about a $1 $3 billion roughly non admitted DTA.

Speaker Change: Could you remind us.

Speaker Change: David.

Speaker Change: Okay.

Speaker Change: Okay.

Speaker Change: Great.

Speaker Change: They require a capital contribution.

Speaker Change: Okay.

Speaker Change: GNL and so that was about half of the impact and then the other piece was related to.

Speaker Change: Yes.

Speaker Change: Yes, Jamie.

Speaker Change: Yes.

Speaker Change: Hey, there.

Speaker Change: Being able to utilize Nols.

Speaker Change: Hey, Ryan.

Speaker Change: You were kind of breaking up there on that question, but I think.

Speaker Change: Got you. Thank you.

Speaker Change: Maybe if I can just confirm you are asking about the sensitivities.

Speaker Change: Okay. Thank you.

Speaker Change: Thank you for your question.

Don Cummings: And so that was, you know, about half of the impact. And then the other piece was related to being able to utilize NOL. Gotcha. Thank you. Thank you for your question.

Speaker Change: Next question is from the line of Ryan Krueger with Cape UW. Your line is now open.

Speaker Change: What sort of market.

Speaker Change: Level and interest rates.

Speaker Change: On our capital generation is that.

Speaker Change: Okay great.

Speaker Change: Right.

Speaker Change: Can you remind us.

Speaker Change: Alright.

Speaker Change: David.

Speaker Change: Okay.

Speaker Change: Okay.

Speaker Change: Yeah.

Speaker Change: Okay.

Speaker Change: Two.

Speaker Change: Alright.

Speaker Change: Great.

Ryan Krueger: Next question is from the line of Ryan Krueger with KBW. Could you remind us before we move on?

Speaker Change: Scenarios.

Speaker Change: They require a capital contribution.

Speaker Change: Okay.

Speaker Change: Capital in the past.

Speaker Change: Okay.

Speaker Change: David related to.

Speaker Change: I think yes.

Great.

Speaker Change: Yes.

Speaker Change: Alex.

Speaker Change: Yes.

Speaker Change: David.

Speaker Change: Thank you Sir.

Ryan Krueger: Transcripts provided by Transcription Outsourcing, LLC. I believe you gave us those at one point, but I think, you know, you're kind of a thing that could have changed since then with so many of the updates there. Hey, hey, Ryan, you're you were kind of breaking up there on that question. But I think maybe if I could just confirm you're asking about the sensitivities to sort of market levels and interest rates on our capital generation. Did I get that right?

Ryan Krueger: Hey, Ryan Youre kind of breaking up there on that question, but I think.

Speaker Change: I think I got it yes so.

Speaker Change: So we did it.

Ryan Krueger: Maybe if I can just confirm you are asking about the sensitivities.

Speaker Change: In the past we have described.

Speaker Change: A scenario that would potentially require us to inject capital into brokerage rate.

Ryan Krueger: Sort of market.

Ryan Krueger: Level and interest rates.

Ryan Krueger: On our capital generation is that right.

Speaker Change: And I do think that.

Speaker Change: The experience that we saw in April was a good test for us.

Ryan Krueger: Alright.

Speaker Change: We didn't have to put any capital in but in general those scenarios that would.

Ryan Krueger: Yes.

Ryan Krueger: Yeah.

Ryan Krueger: Alright.

Ryan Krueger: Scenarios.

Speaker Change: And evolve our need for capital at Brook rate would be.

Ryan Krueger: Acquired.

Ryan Krueger: Capital.

Ryan Krueger: In the past.

Speaker Change: Scenarios, where there is a very very high level.

Ryan Krueger: Related to.

Ryan Krueger: Great.

Ryan Krueger: Yeah.

Speaker Change: Volatility combined with.

Ryan Krueger: Okay.

Unknown Executive: Sorry, no, you have given sensitivities to, or I guess, scenarios that could require you.

Ryan Krueger: Okay.

Ryan Krueger: Okay.

Speaker Change: Deep equity stress and or a combination of equity and interest rate stresses.

Ryan Krueger: I think I got it yes so.

Ryan Krueger: So we did.

Speaker Change: And these would generally be environments similar to.

Ryan Krueger: In the past we have described.

Ryan Krueger: Type of scenario that would potentially require us to inject capital into broke right.

Speaker Change: The global financial crisis, or the Covid shock that we experienced in 2020.

Don Cummings: Unknown Executive, Don Cummings, Laura Prieskorn, Elizabeth Werner, Scott Romine, Unknown Executive, Don Cummings, I think I got it. So, yeah, so So we did in the past, we have described the type of scenario that would potentially require us to inject capital into brookery. And I do think that, you know, the experience that we saw in April was a good test for us. And, you know, we didn't have to put any capital in. But in general, those scenarios that would, you know, involve a need for capital at brookery would be scenarios where there's a very, very high level of volatility combined with, you know, a deep equity stress and or, you know, combination of equity and interest rate stresses.

Ryan Krueger: And I do think that.

Speaker Change: Yeah.

Ryan Krueger: The experience that we saw in April was a good test for us.

Speaker Change: I guess, just as a quick follow up to that.

Ryan Krueger: We didn't have to put any capital in but in general those scenarios that would.

Speaker Change: How important is the duration of the elevated.

Ryan Krueger: And evolve our need for capital at Brook rate would be.

Speaker Change: Elevated volatility.

Speaker Change: So obviously, we had April was probably yes.

Ryan Krueger: Scenarios, where there is a very very high level of volume.

Speaker Change: On a standalone basis that was similar to the stress scenarios, but it was also one month is is it would it require a scenario where volatility was particularly elevated for.

Ryan Krueger: Volatility combined with.

Ryan Krueger: Deep equity stress and or a combination of equity and interest rate stresses.

Speaker Change: A pretty extended period of time like a year.

Ryan Krueger: And these would generally be environments similar to.

Speaker Change: Yes, I'll start on that and maybe I'll ask Bryan.

Ryan Krueger: The global financial crisis, or the Covid shock that we experienced in 2020.

Speaker Change: Our hedge program.

Speaker Change: Chime in but.

Ryan Krueger: Yeah.

Speaker Change: I think it would be an environment, where it's elevated for a longer period of time. Then then we just experienced.

Don Cummings: And these would generally be environments similar to, you know, the global financial crisis or, you know, the COVID shock that we experienced in 2020. I guess just as a as a quick follow up to that, like how important is the duration of of the elevated volatility? So obviously, we had, you know, April was probably a month on a standalone basis that was similar to the stress scenarios, but it was also only one month is, is it would it require a scenario where volatility was was particularly elevated for, you know, a pretty extended period of time, like a year?

Ryan Krueger: I guess, just as a quick follow up to that.

Speaker Change: And I think the key thing that we look at with respect.

Ryan Krueger: How important is the duration of the elevated volatility.

Speaker Change: Two brokerage is the internal risk management framework that I described earlier in response to another.

Ryan Krueger: Obviously, we had April was probably yes.

Ryan Krueger: On a standalone basis that was similar to the stress scenarios, but it was also one month is is it would it require a scenario where volatility was particularly elevated for.

Speaker Change: Another question.

Speaker Change: We designed that so that it <unk>.

Speaker Change: Making sure that we've got sufficient capital and kind of those deep deep tail scenarios, but maybe I'll just slip.

Ryan Krueger: A pretty extended period of time like a year.

Brian just provide a little bit more color around volatility.

Ryan Krueger: Yes, I'll start on that and maybe I'll ask Bryan.

Brian: Thanks, Don.

Speaker Change: I would agree that the longer the duration that were problematic it would be but at the same time, we do.

Ryan Krueger: Our hedge program.

Speaker Change: Chime in but.

Speaker Change: I think it would be an environment, where it's elevated for a longer period of time, then that we just experienced.

Speaker Change: A combination of both futures and options and those options helped to protect against realized volatility and so to the extent that you are in that regime you can.

Don Cummings: Yeah, I'll start on that. And maybe I'll ask Brian, who runs our ALN, our HIP program, to chime in. But, you know, I think it would be an environment where it's elevated for a longer period of time than we just experienced. And I think, you know, the key thing that we look at with respect to to Brookray is the internal risk management framework that I described earlier in response to the another question. And we do design that so that it, you know, we're making sure that we've got sufficient capital in kind of those deep, scenarios, but maybe I'll just let Brian just provide a little bit more color around, you know, volatility.

Speaker Change: And I think the key thing that we look at with respect to.

Speaker Change: Essentially add more options that I would note that we can.

Speaker Change: Brokerage is the internal risk management framework that I described earlier in response to another.

Speaker Change: <unk> did continue to add options during Q1, and during Q2 as well as to kind of mitigate that potential realized volatility risk and from an option standpoint. We also have the ability to be flexible on the types of options, we buy depending on the implied volatility regime to make sure we manage our costs as well.

Speaker Change: Another question.

Speaker Change: You can see we designed that so that is where my.

Speaker Change: Sure that we've got sufficient capital and kind of those deep deep tail scenarios, but maybe I'll just slip.

Speaker Change: Brian just provide a little bit more color around volatility.

Speaker Change: Okay. Thank you.

Brian Walta: Thanks, Don.

Speaker Change: Yeah.

Speaker Change: I would agree that the longer the duration that were problematic it would be but at the same time, we do yes.

Speaker Change: Thank you for your question.

Speaker Change: There are currently no further questions registered so as a reminder, it is star one on your telephone keypad.

Brian Walta: A combination of both futures and options and those options helped to protect against.

Speaker Change: There are no additional questions waiting at this time, so I'll pass the call back to lower Prescore CEO for any closing remarks.

Speaker Change: Volatility and so to the extent that you are in that regime you can potentially.

Brian Walters: Thanks, Don. Yeah, I would agree that the longer the duration, the more problematic it would be. But at the same time, we do have a combination of both features and options, and those options help to protect against realized volatility. And so to the extent that you are in that regime, you can potentially add more options. And I would note that we did continue to add options during Q1 and during Q2 as well to kind of mitigate that potential realized volatility risk. And, you know, from an option standpoint, we also have the ability to be flexible on the types of options we buy, depending on the implied volatility regime, to make sure we manage our costs as well.

Brian Walta: Add more options and I would note that would be.

Speaker Change: Thank you. We appreciate your continued interest in Jackson and the questions that we received today as you've heard this morning Jackson strong performance during the first quarter reinforces the resilience of our business and the value our products have in the lives of Americans planning for retirement.

Speaker Change: We did continue to add options during Q1, and during Q2 as well as to kind of mitigate that potential realized volatility risk.

Speaker Change: And from an option standpoint, we also have the ability to be flexible on the types of options, we buy depending on the implied volatility regime to make sure we manage our costs as well.

Speaker Change: We look forward to continuing these discussions and sharing our progress toward our 2025 targets. After next quarter. Thank you.

Speaker Change: Okay. Thank you.

Speaker Change: Thank you for your question.

Speaker Change: That concludes the conference call. Thank you for your participation you may now disconnect your lines.

Speaker Change: There are currently no further questions registered so as a reminder to star one on your telephone keypad.

Speaker Change: There are no additional questions waiting at this time, so I'll pass the call back to lower preschoolers CEO for any closing remarks.

Operator: Thank you. Thank you for your question. There are currently no further questions registered. So as a reminder, it is star one on your telephone keypad.

Speaker Change: Thank you. We appreciate your continued interest in Jackson and the questions that we received today as you've heard this morning Jackson strong performance during the first quarter reinforces the resilience of our business and the value our products have in the light of Americans planning for retirement.

Laura Prieskorn: There are no additional questions waiting at this time, so I'll pass the call back to Laura Prieskorn, CEO, for any closing remarks. Thank you. We appreciate your continued interest in Jackson and the questions that we received today. As you've heard this morning, Jackson's strong performance during the first quarter reinforces the resilience of our business and the value our products have in the lives of Americans planning for retirement. We look forward to continuing these discussions and sharing our progress toward our 2025 targets after next quarter. Thank you. That concludes the conference call. Thank you for your participation.

Speaker Change: We look forward to continuing these discussions and sharing our progress toward our 2025.

Operator: You may now disconnect your lines.