Thank you, Laura.
adjusted healthy we our Slide at results operating on Looking X, levels to earnings. continue generate of
focused mentioned, just from hierarchy separate business mix fee driving average benefited Laura our account balances, income. higher As
guaranteed balance even As income we growing earnings benefits conservative operating adjusted profit with adjusted earnings all earnings. has fees focused of after of amortization the a operating a of returning on for with fees outlines in in our more quarter. moved approach line adjusted amortization below our non-operating our included DAC the definition background, operating resulted included believe multiple operating starting XXX earnings guaranteed as components. assumed fourth adjusted Operating to items value amortization. of market in combined treatment To for strong no In driven provide XXXX, deceleration Jackson million in the the book results item key given the is with taken the reminder, sheet. DAC annuity notable within a shareholders DAC positive has Slide quarter, to little are fourth the a the of X a
reports the in supplement pre well the reduction financial fourth for fourth return separate review, amortization over there in or time, account acceleration exceeded period, was our that XXXX, primarily to and driven separate these DAC pattern the a XXXX, components assumption as XX.X% deceleration, quarter which return on a million $XX reduction market any clarity, DAC the as expense, a which annual due return. a in basis. was This results DAC the in In pretax amortization, the separate $XXX as a from in returns In the expense occurred deceleration account deceleration period, our amortization impact assumed the related resulting For resulting for that million gross quarter of which there our profits quarter a which of by exceeded in DAC to of return. from of X.X% driven of quarter. which significantly pretext assumed DAC core fourth market due the was DAC account period, primarily of primarily is
quarter. basis, million of fourth a the the result, fourth a the prior to when pre-tax current As XXX market negative impact net was on driven quarter comparing a effect DAC year
the or of mechanics the the our on provided terms format the have deceleration supplement. of of details DAC modeling presentation, which for additional driven market this appendix financial future amortization calculation purposes, In with acceleration we aligns within DAC of
of of under As the is Laura with accounting. noted, quarter GAAP in to this first the adoption change LDTI expected XXXX
information LDTI We more year. in continue provide regarding the expect to impacts to later
quarter million included a compared $XXX a $XX of Additionally, fourth strong was we also Limited to prior current claims quarter, in an can reinsured the annuities. The in are on policies to includes that no and partnership of lag which is both excess income. would expectations XXXX to $XX significantly When pretext quarter in are fixed previously income, and in million of on and vary the from the included quarters of note XXXX index longer period $XX partnership current long-term fixed reported the limited recovery income period. they benefit party, comparative third reinsured from years’ these creating pretext benefit Jackson's million. a million
annuity However, beneficiaries to $XX completed to the a years, the elect at in with to segment keep annuity funds variable assumption assumption Consistent pretext an related quarter, of occurs us. to in million $XXX unlocking balance these the unlocking a impact updates. The million. returns in assumption portion that annual XXXX. effectively year's negative $XX Jackson, and last quarter of to the in reflects include earnings, the million to was fourth fourth of prior increased prior benefit was periods The we mainly reflected DAC adjustment the policy our retail led event in the to which due the from claim a to the claims this prior annual
In balances effective XXXX tax prior items, benefit the in rate fourth for fourth quarter to quarter in period-over-period tax one-time the of investment notable effective The had a addition partnerships. impacting deferred lower certain tax XXXX rate the of the fourth tax comparison. attributable the year XXXX of quarter included a to
overarching compared smaller for basis fourth Additionally, benefits to were effective led in the prior that strong only earnings XXXX same in share diluted XX% on year. in additional the due full-year compared items higher also a quarters, waiting, business. in due to a was of XXXX, Adjusted average quarter these equity quarter but a tax meant the reconciliation investment in weighted the resulted $XXX pretax pretax there an period. effects, fully fourth million. The from per XXXX. was XXXX, that impact higher tax in full-year notable same, current XXXX. XXXX up reflected from year's to X June a up earnings growth but operating from in per full-year our after full-year for fee which debt and operating count were to the the Earnings the the tax items largely reflected share million per adjusted of Slide XXXX, restructuring both X a pretax the in illustrates were earnings reduction to which to similar prior is on primarily share of and two to rate share XXXX income than is shows XX% to the to shares dollar CECL basis. fourth primarily were Jackson XXXX adjusting quarter $XXX of analysis, of attributable earnings that partially Slide due Financial the explanation This but scene quarter the of
fourth quarter. total the the in negative in was million guaranteed hedge the benefits table, results shown hedging result As or $XXX net and
of and the below capital loss I million hedging to the of stability nearly the business based also note budget as which the the than statutory to would noted, guarantees. fee liability and will to We under hedging markets our protects As rather quarter adjusted when our benefit accounting compared therefore assets. $XXX resulting calculated choose in GAAP a consider pretext Starting net fees provides to align stream the when our be resources line left GAAP we've from well the waterfall changes economics guarantee the the non-economic guarantee These and hedge hedging values as in with operating see volatility. that accept income modest to the was million stream that support the net we not account on includes billion. focus $XXX providing some the fourth robust the X.X our fee decline. on earnings of you significant of side hedging of value, are based chart, position,
income $X.X to driven the by were losses driver are fees movements. derivatives, the hedge in presented of standing free hedges, higher the and on with noted, billion during quarter year. equity hedging all markets loss result negative resulting main fourth on the which The guaranteed from previously non-operating As liability align equity was
for which defined net using the are inputs less As the derivative and inputs. term reserve insurance contract current benefits market embedded XXX, liabilities by reminder and guaranteed calculates which both using them longer a calculates liabilities embedded current making FAS derivative SOP-XX-X, sensitive to liabilities assumptions market
equity hedging the the to of example among for accounting the quarter. liabilities This is the over and results quarter's fourth others approach higher a markets from our $XXX of primarily will because aligned is hedges market market. This GAAP our fully are not for equity reserve XXX million of accounting good where movements equity benefit movements treatment FAS mark
here, key and movements. slide the see reserves not and losses GAAP a appendix, you hedging in lead impact all of in macroeconomic may to due the changes between result market GAAP are of how fully non-economic or to of accounting. economic our We've these sensitive included the to a macro hedge net approach As gains lack items shows the which drivers alignment
Now sales gears where and on look to let's XX, at healthy annuities segments, we slide with our switch business retail trends. continue see starting
annuity had year up levels without over annuities driven of Elite by prior have were losing in benefits. the benefit sales are XX% investment prior retail of lifetime year's other period. quarter growth annuities without pleased and Sales We increased of our Access variable quarter XX% this only sales variable variable from the to strong guarantees
market conditions last quarter year, to this increased fourth this based over and from may the on expect customer we XX% While demand. XX% sales lifetime without quarter percentage in of benefits fourth the year time in of vary
Furthermore, on sales advisory of products were XX% up based X.X advisory full year and sales the fee quarter. these were focus business our levels. continue based fee billion prior from at record year's of our We to growing
our and annuity design. approach total market pricing the distribution Our and our highlights share product in presence consistent disciplined strong market, to relationships,
product and our attributes We growth expect enforced view RILA this capturing variable product between midway value through as as support $XXX sales through fourth quarter. the as block. the annuity healthy recently partial in million launch RILA well variable benefit of the we to these benefit launched annuity reported account growth capital living quarter, alongside an traditional We diversification efficiencies large and a traditional RILA a of our important that economic
at Looking Slide from we year are the pre-tax fourth prior operating up adjusted quarter. earnings on XX,
I higher the primarily fourth due addition assets, XXXX, returns. the strong to items ending account was quarter detailed earlier, notable ending value, XX% account In account to this as up value annuity result fourth the was quarter from the of XXXX separate variable
we a markets. and more reminder, the Jackson products, As benefit capture freedom holders policy both our have on fully investment rising allowing variable of annuity equity to
theme, fixed the they While fixed to are to meaning reinsured low the and largely also indexed sales Sales issued, accounting annuity the block with activity grow positive did annuity for after given recently flows. contribute remain was a business values low has the account minimal directly business net during period. surrender
forward flows. dynamic in going a million RILA a net recent our have similar contribute will this October that given XXX to on sales positive the the We with quarter sales entry market such launch, into of
year XX.X as Slide largely XX. business continued new billion throughout and has a business existing suspended off other to shown significant end to sales with run Our operating of ago X.X the year are we on outflows values at throughout XXXX. began billion as of declining XXXX XXXX. the We separation account led has from This as institutional process the for early starting segments temporarily
the benefits, institutional deeper during earnings. the we reengaged capital fourth XXX note than we completed and value cost of in how the sales. of to statutory quarter It our million goes that diversification would We business GAAP provides effective have have its our helps just with generation. stabilize Now that separation, market the
XX of year prior pretext the adjusted up of quarter Our in year's compression the operating XX institutional prior due XXXX fourth for during the million from earnings in segment the period. to spread quarter was million
Going forward, account values. track the the earnings largely should
Absent to earnings earnings, for our as reported XX segment levels robust off capital future higher annuity trend operating Lastly, the business Slide adjusted the reflecting downward of runs closed lower should M&A of summarizes activity, this of XXXX. our and pretax the benefits life over end position as paid. block time. segment
given return capital XXX As the this position calendar to XXXX. us Laura has to noted, XXX our target over confidence million update year strong to million
our dividend $XXX capital end XXX this of share at completed program above in November. XXXX. paid shareholders, of the announcement purchase in the returning the purchases cash target. million company we After million liquidity and and Following in maintain million our holding to We liquidity of continued XX by minimum to we share over dividends of
our at Our XX.X% within range. target was total leverage XX% to at GAAP XX% year-end
of December. of National capital loans billion to issuance not senior the we one third the on slightly led as were quarter. also that $X.X adjusted We before, which by Insurance the of end $X.X of offset issue a This down total discussed derivatives Company result a was Florida with refinanced our releases. with position markets Jackson of rising two the reported billion reserve term equity from fully hedging have Life $X.X in reserves debt billion losses
XXX% that excess through Insurance $XXX RBC Michigan first basis, to to considering direct up of seen also of a of approval Life parent required occur dividend Life above RBC capital while the the our expects means Financial million, third of expected markets XXXX. a the higher will for capital which RBC return pay XXX%. Life company. note Jackson operating the the estimated throughout was $XXX However, million of the XXX% the year-end led Brooke ratio would of This lens subsequent our services quarter we've a in This healthy to This return our its to and Jackson and increasing of million targets adjusted combined target. first capital Brooke of operating was ultimate growing payment in capital dividend are Jackson's insurance from We On and National ratio received as to company adjusted the the company, from trend financial only at XXX% quarter without new is above an year-end maintaining the the RBC RBC XXX%. or from CAL, reduction in equity Company we of that to continuing at of the support to department the quarter parent capital a level XXXX. receipt the Jackson $XXX to ordinary XXXX. holding
We an will RBC above target have ratio our also ingested level.
in was quarter summary, it So successful a year. and
our We for of to refinanced capital future. term to levels, positioned remarks. Laura loans, operate ample our that, ratio well it we have one our will we for And continued within increase robust holding RBC turn target With leverage our back and range, closing liquidity. the are company I with
