JXN - Earnings call transcript Q1 2024

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Operator

Good morning. Thank you for attending the Jackson Financial Inc.

First Quarter 2024 Earnings Call. My name is Cameron and I'll be your moderator for today. [Operator Instructions] And I would now like to pass the conference over to your host, Liz Werner, Head of Investor Relations.

proceed. may You

Elizabeth Werner

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

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

our our At and Investment Chief time, Scott PPM, Binioris; us of and I'll Prieskorn. of Management Romine; to Liability CEO, Distributors, Officer Smith; Joining President call Controller, Accounting and Asset and the Laura the Chief our Life Craig Wadsten; are Laura CFO, the Actuary, Cummings. of National over Prieskorn, Officer today Head Jackson President Don Chief Marcia turn Steve this our CEO,

Laura Prieskorn

structure outcomes and in Brooke results the Re XXXX Life. anticipated reflect first to on stakeholders. Beginning year In on shared work our solution. of hard quarter a Jackson the formation on all focus delivering impact positive positions impacts and Slide long-term The to Re, Re. execution to include captive the commitments Brooke quarter to strength Good for off morning, the This National reinsurance we first on we and are Re marks everyone. results, of Brooke that our of Jackson full our of continued a Brooke our start capital strong XXXX, X, the expected and led

This quarter, increased risk-based with capital Jackson capital our RBC generation and or National statutory ratio consistent expectations.

alignment hedging led to net reduced between reserving, GAAP anticipated, by also As our greater extension, and U.S. GAAP income. results approach saw economic net and volatility hedging in we which

capital our the aligned adjusted with or assets as AUM under both of driven earnings operating non-GAAP is primarily our measure statutory are Importantly, substantial annuity-based variable supporting better generation by management contract. our

As stable financial that better a intuitive, and and the profitable power business. of result, capture and healthy now has Jackson our of predictable more earnings large economics book results

Slide to X. Turning

a GAAP more moves equity reported the to interest our compared hedging results. statutory You In with detail. we'll which benefits result and both cover will in of quarter in economic significant hedging smaller net U.S. rates, see evident quarters, both a we were in prior and markets

also Financial. of income We GAAP Jackson at $XXX reported net nearly million

XX% expectation conditions. of an funding XXX%, to operating the to pace XXXX, more million capital for from by Jackson spread normal in generation well giving under earnings generation increased of billion at This up for of and financial aligned with of of XXX% RBC XXX% level market consistent Our to year National's Brooke first $X Jackson targets our from the adjusted the $XXX a million, estimated quarter drove is equity beginning effect after markets and or first capital annual quarter benefiting grew income. At the nearly generation Re. $XXX broadly National, capital with of earnings. adjusted operating higher the from capital favorable This environment statutory

first production quarter to of mix with continue overall the RILA another retail on of sales our XX% record quarter. progress make diversifying over annuity increase year's an driving in sales nearly We prior

or to guaranteed recent Pro now policyholders providing Market income create product Jackson suite. the option of time. +Income, Link income to the over Our stream lifetime product This option grow a innovation enables opportunity withdrawals our income available defer an launch with immediate continues in

for our living +Income partnerships, philosophy We of RILA underscores options, our on believe into to help product in these to year strong providing share history of our service annuity product shareholders, industry-leading consumer XXXX. and continued suite of innovation, our delivering Along addition the capital $XXX position sales variable million dividends choice, sustained an of distribution the value. flexibility returning through in buybacks Jackson benefit Overall, strong very with a offerings quarter first focused momentum the positive fuel future. common to start and results the to

highlights billion shareholders of Jackson's common capital The our share capital conditions. stand-alone of exceeded XXXX. market and and consistent since track becoming record Slide September repurchases public X a $X.X in has environments to company return returning through dividends different in

the quarter end represented outstanding we first our shares continue believe XXXX, shares XX% than This of the aligns to more separation. of repurchased us well. with approach at common cumulative serve of will As capital which balanced return, to of

shareholder more stream and paid generate $X.XX our sustainable of and focus to $XXX Yesterday, We have capital common shareholders ability our share. on years. long-term return continue our our increasing shareholder value. announced quarter per our reflects less a a to X and valuable to approval cash cumulatively of Board's a dividend second commitment profitability This of common continued and in confidence capital dividend to than than we in million view as

Financial, our capital Moving to parent a Slide at quarter. as this position company, Jackson operating Maintaining a priority and again remains companies strong X. evidenced

be favorably level Our holding million the million. We our target our $XXX targeted above significantly to shareholders first first ended million of RBC compares the $XXX nearly capital of common XXX%. our of the quarter quarter and first continues our end annual of liquidity at $XXX minimum as company minimum to with return to above quarter

and going details statutory our predictability the capital billion. now Our quarter it is our distributions between metrics financials. Marcia review ratio of of company adjusted TAC, Jackson capital, with and is from XXX% our XXX% over along Re following to smaller turn or our implementation position transaction, our forward. I'll RBC these The estimated for total $X.X Brooke for first greater expectations of stability to simplifies operating expectations periodic National to approximately

Marcia Wadsten

results first fee Adjusted fourth of both Slide driven quarter Thank million I'll spread with quarters, by and X earnings and from stronger summary. you, earnings. Laura. first XXXX's increased begin operating our on $XXX

adjusted due value discuss operating detail more first to healthy to over common net book Our in will shareholders and quarter results, adjusted increased I the positive earnings attributable hedging which shortly.

on on partnership Results above statutory a first U.S. our $XX details of excluding reminder, a our parties of statutory of portfolio Jackson lag, with $X funds a the third As income quarter XXXX, expectation slightly investments, a remains comparative the investment-grade less the item and partnership rated below million. on long-term expectation report into funds exposure appendix from long-term account withheld basis basis assets GAAP current were only in investment withheld reinsured X pretax included to provides additional for our conservatively creating provide have general presentation, general highly In earnings both operating that breakdowns our and the assets. Slide which benefit below notable portfolio limited quarter. outlines than million included in was mortgage limited quarter commercial of the to through X% agreement. account. positioned X% benefit. the The first insight loan securities helpful in diversified a excluding for the which information earnings is adjusted we X-quarter

similar a our earlier. Slide first made and year's operating visual higher and offers in earnings rate on tax quarter quarter earnings from that pretax year's per $XXX spread X attributable lower to quarter both market in Financial addition item, pretax operating million. compared the effective benefits this the Jackson and with the due adjusted Adjusted prior of item to of current first first dollar tax current to XXXX the quarter, guidance first effective rate income quarter. to long-term benefits the for benefit $X.XX were are impactful This primarily to the quarter $XXX less XXXX the benefited of a income a which difference, occurred million due both XXXX the in notable pretax quarter In prior first a to relative larger the notable in earnings noted to rate. $X.XX the tax equity tax to share basis reconciliation XX%

the economic is GAAP better another Re hedging now aligned U.S. positive Here, of reserving. our Brooke see we solution as with outcome

hedging the first in the in guaranteed net or total quarter gain million shown As and hedge benefits results, of result, table, $XXX XXXX. was of a

hedging account movements. from align decline. Consistent table, our are from in value, stream. and to the are the of fee provides which this nonoperating base when practice, fee guaranteed to with Starting the top gain all a with stream benefit presented guarantee fees stability fees income guarantee includes markets the These liability than related the rather benefit benefit robust calculated guaranteed

interest a well losses freestanding on loss rate During the to rates the across included on in yield due rising a environment. as the equity net where losses a were hedges as curve interest result hedge equity in up market hedges primarily period, derivatives, on quarter

improved reflects or natural variable the primarily the business movements following higher net as results. the offset The in freestanding which in illustrates RILA risk derivative and This rate business market which offset guaranteed Brooke Movements a benefited the RILA the MRB, implementation. net between block reserve market on same equity efficiencies and Re movements, increase results broadly items from resulting to markets. annuity the derivative hedging alignment losses embedded grows. benefits, the and reserves RILA the on interest This loss related books, equity the from equity hedging that provides hedged

in million is date slowly will Nonoperating of associated the and or in withheld transition resulted parties. of a run DAC, off cost, time, against derivative amount included from from acquisition deferred over to The results the the amortization income. on portion in investment the amortization the LDTI. from reinsured result This also decline nonoperating related the change hedge third reinsurance a current associated netted This should loss treaty to quarterly of due $XX net nonoperating with DAC DAC the net as to continue funds business to value level. embedded the included gains

which account income, our other adjusted capital impact or be to do free these resulting related value. are impact to a volatile funds in not period from on AOCI, cash statutory These Furthermore, changes can nonoperating items or by in net period, book reinsurance, minimal withheld items, flow. the Jackson's accumulated in offset comprehensive

progress. on sales retail segment and on Slide results start annuity Our focus XX

to Sales sales billion, fourth product XXXX. pace relatively quarter $X.X seen were quarterly with XXXX to of of we've diversification RILA are in consistent a the our since the the with our first top continues variable highlighted, of supporting Laura reaching of further gain flat record quarter compared As quarter level annuities first momentum and line.

grown has the of translated to the sales diversification over flow products These RILA spread provide a and quarter gross net of XXXX billion benefits. When viewed which we in flow $X.X and net hedging economic through materially lens, in valuable generating are non-VA time. flows efficiency net first

Importantly, our the efficient streams. remains new overall standpoint sales of from mix business

of pretax Looking and driven segments and both built billion, at quarters positive up spread AUM of markets is combined value XXXX. earnings the XX, first segment healthy income XXXX. Slide in growth Jackson's first our XX% our quarter Annuities first equity for power returns the net to of on higher by XXXX environment Retail adjusted quarter with has growing for to growing a operating compared account $XXX account continued solid increase fourth level have supported separate an non-VA from earnings the of as flows

Institutional from both due periods operating up also our adjusted segment, income. higher earnings to pretax prior were spread For

of first compared million higher our reported of when to billion. Brooke impact adjusted to annual segment variable comparing January in and an fourth an quarter due profitability Blocks XXXX the from pro pretax as after adjusted runs the Annuity in and of both sequentially. Slide increase the driver total off, earnings is capital, business annuity prior quarter decreases is or XX to operating primarily assumption periods. the $XXX contract to primary This Life nearly forma updates the reserve The closed capital position. our J&L's Re. X of level TAC, based the This was increase summarizes Our reflecting $X.X approximately

is that removed. been CAL, company the our impacts forward, have stable cash required action or surrender floor level more much value now capital, Going

of RBC XXX% to and minimum up level XXX% estimated Our forma above ratio XXX% was from between the well January our pro XXX%. X

a capitalized. also at first Re We well which successful expected remains as Brooke quarter had and operated

asset million the to and $XXX nearly Our minimum holding end the position cash liquid quarter be of at our was which above buffer. continues highly company

intend the dividends. we sizable company and our indicated distributions practice annual regulatory previously year periodic throughout As subject of approval, the from to occurred with RBC goal that from to the of have volatility past our operating reducing

capital these robust in position operating We strength position holding operating robust companies operating across company with believe Overall, companies capital for very and favorable sales, dividends. pleased results, which across a earnings, foundation I'm capital financial liquidity. demonstrate our provides company future

the turn to call now I'll back Laura.

Laura Prieskorn

Thank you, Marcia.

show a look we've results to business quarter Re I by the produced is of pleased are continued I'm the results XXXX, for off performing Our today. forward remainder in energized resolution success I'm first Brooke the expected. our as prospects XXXX. in with to shared in and quarter we great first the start quite our and happy

their I'd always, acknowledge for Jackson As dedication their like talented to futures. planning to our financial and solutions in for providing our purpose team long-term Americans

learn we communities our continuing read how these annual report details which business to corporate products this value encourage to I you take more our Earlier in role enhance drive other on posted published long-term to they in about annuity how success. and industry active access forward. our report, moving week, support each and jackson.com invest to responsibility and efforts we an while our to the our

through to previously years positive we've contributions come, At been X. will has in to the for Marcia commitment It Officer. leadership, grateful and her dedication the our time for retiring Chief as appoint felt history. as and company's is steadfast Marcia's serve Jackson effective honor an I'm time, Marcia Finally, counsel. her we Financial Board Cummings transformational to that shared, most June Don be and alongside expect

Marcia Wadsten

Laura. were independent be Jackson privilege and my has of company. It as entire part Thank to a you, been an especially to as public operating career, we transitioning for

know well positioned capital is to I generate maintain to support approach future, the balanced Don to our to ability turn we Jackson's capital As and management.

Don Cummings

appreciate of morning, on everyone. the I the CFO take Good Marcia. Thanks, to opportunity Jackson. role at

Marcia closely public became an Over we of from and to capital managing stakeholders. Jackson's commitment the learned benefit have last with independent all the I've worked for X her years, as immensely company

optimistic the continue in forward coming and to the work meeting future we transition, I'm As through look to weeks. many in-person about you the of

Laura Prieskorn

to Congratulations as you Don. new the embrace questions. over and Marcia call experiences. turn to you, Thank now I'll you for both the operator

Operator

from of is question ISI. first Tom The the Instructions] with [Operator line Evercore Gallagher

Thomas Gallagher

off, First guess on flow. best I And my are luck of to both cash Marcia, questions you.

is, and so around you're $X the shareholders, and that -- potentially generation to reiteration billion I annual I interest the of we of $XXX for your probably after one $XXX leave expense, would know a committing heard of available then is First consider $XXX million capital million buffers for or this excess year. do you stream based consumed plan capital million and get What on way some happens that to that like to grow for something sales when the waterfall, the other new other else? have contingencies? Or does midpoint

Marcia Wadsten

Tom. Thanks,

think Re. Brooke days with early I it's

of but what holding set with is result we for in our shareholders. we that time. target potentially evaluate, that over return over And our the really can balance the And and as your there about for view in use past means year balance makes of sheet guess, business expenses. investment strength math terms is a So this well the sustainable, also talked new We've that which that, consider we capital sense to grow as after something net time. difference will company I supports

for we business new as we an change move think magnitude of But the different under arrangement the I through and had to of we'll evaluate investment perform opportunity XXXX, So watch that mix if this our business certainly, options. may a have business.

might we're the mix writing, pretty an that as to that We terms strategic about have allows capital-efficient but along a think be other also today opportunity of well. come business in opportunity may what that opportunities us

Thomas Gallagher

to And and million Brooke XXXX, a looks for dividend holding your then that's out it, of should plan cash, the this look the taking you little be it up and capital be probably I little bit a you'll like Holdco able still company follow-up current that Life it at your $XXX at my is is sense. makes under at you end if year. execute all but out if XX-Q, That permissible looking just tight suggests

plan be little to extraordinary flow, lower talk going bit that dividends extraordinary every lower an your for a as option? think out a dividend because is at the how permissible take there relative year? to you if do Is level Maybe a cash year about to this about dividends

Marcia Wadsten

Yes. Sure.

I beyond go the meant is as RBC company another talk fact more JNL and periodic that that stability, Brooke about was to which more all, we would just contribute as XXXX also a that out that, Re out of on guess, as of First did annual of that, we just began well we which back transaction. to second, that our from out to move just distribution change the operating thing larger would the bring towards a cadence

about out capitalize set up far, we've As of so Re. and JNL Brooke distribution think XXXX a already we taken to

So this we Jackson support look to holding and for to as year, National Life company. as distributions upward opportunities we'll is to capital well of remainder through move performing the the able generating be

The And we've main about we is course, really to JNL that's those capital out the where Re look that I generating pass-through. And source any near the essential... subject is distributions, which, support engine those generation talked we to term I and fact would would distributions. main would is to engine for JNL, that just approval. capital point the in the of we expect are all to Brooke But regulatory think guess want that's

Thomas Gallagher

I to Sorry, parent Jackson. Life, Brooke the meant which is

Marcia Wadsten

Life expect National company. that to that fund Jackson would that distributions. from up because Yes. JNL those would But distributions holding then the really Brooke really further is probably capital come Life and from we our would the the to Brooke generating up just That's

they and of most point But the company. And near out distributions in would point So we would holding the those Brooke of into be historically, that would pass term, Life extraordinary that Jackson's just I'd dividends in to the have been extraordinary. distributions, nature. be through expect the would starting

not that's for situation us. So a new

Thomas Gallagher

Okay. That's really helpful.

be you line, this in year? expect bottom as wouldn't gating So permissible dividends to item the a

Marcia Wadsten

we've extraordinary I regulator quite often through our in past, the the alongside approach again. would worked think our be and No, that dividend passed

Operator

from question the Jefferies. next The of with is Kamath Suneet line

Suneet Kamath

Yes.

Life couple following Jackson what just the Tom's out to of questioning. the on to Just a a annual line company Brooke you sense be? of you'd National expect of dividend Can us holding give through

Marcia Wadsten

guide would I require on company. target company to would consideration, that activities distribution the of think and of capital type both return look just I to support funding Well, holding our at what those course, of of the be would to needed just expenses holding

Suneet Kamath

Okay. Got JNLIC's it. about are think that capital the should I we then generation in And you since think think we I million Is sensitivity most as way had it? what Re, in the now guess generation $XXX have about that of up the to markets, relative to quarter, about of think down both capital right to greater Brooke to hedges and the before.

Marcia Wadsten

capital capital to would relative gain should the sensitive JNL's hedge that we in because the what created be between and saw terms of how to loss less that a surrender the simply significant out that. of or what our say generation I lot market play mismatch phenomenon unique given be decreases would had we would the before, generation cash reserve to phenomenon increases than value next

fundamental which that course, are forward AUM-based fees, the would I tied there generation going of the is for think driven our going AUM. capital So then, by to be what of component fees, Jackson our is our to of the we expect size really

we in some engine, of pretty guess, of in to Certainly, going going have performance. related AUM generation. AUM I that movements equity to a past. around that steady base level produce but hedge in I increase decrease less that challenge that's or we'll given ease sort steady that and or be liability the the have our AUM could There's a sensitivity support base some fluctuates, while So that don't fluctuation movements to capital volatility had between far mismatch market that to our that as think we

Suneet Kamath

to... about I asset on from as an more just company it's opposed earnings will just type It like the AUM where core was of talking that Right. management be business. fees

Marcia Wadsten

Yes.

Suneet Kamath

it. Got

the with $XX I we then this there guess last looked change about looked quarter associated Re down And have I quarter something bigger would just your was stat something in all just for that? and earnings the statutory have fourth seen the given And Brooke offsetting way a me now right like down thought Is business it -- question as the that not was had I doesn't? in would think that's the that like at it numbers the supplement, Okay. million. delta Or that's is operating was it? like sequential to -- in

Marcia Wadsten

No, about correctly. that thinking you're

X that guaranteed and probably You would there X there. of the would quarter a just guaranteed net no the highlight, But offsetting benefit X, of can those anticipate in QX. of be are and the are to I from items payments, that the benefit given quarter decline, the longer Don fees fact material a think, ones reflected couple X most

Don Cummings

Yes. Marcia. Thanks,

So items Suneet, fee the that offset kind Marcia of there described. positive settlement net X that were

we're amortizing First we rate losses derivatives In that those had to all, Re, IMR so in the interest Brooke passed quarter. quarter, fourth didn't are now of repeat. over that the derivative through first some

we So positive a that. from got

the second impact positive RILA our hedging And is just really of efficiency. the then

offset risk agreement way Brooke from we that we to an pass know, have up we a higher on the have on equity hedging equities, the Re. to nice over As which is reinsurance and lower process those does results set risk VAs. then JNL the to The is you the RILA the internal

do is benefit has Re hedges. having to of much the RILA on externally. JNL And the hedging Brooke So the from a as impact side full then getting VA got not

agreement. the So of combined that settlement essentially negative the the X from items those reinsurance on offset net

Suneet Kamath

there's those know size you don't could I impacts? if any it. way Got

Don Cummings

Yes.

rough ground big numbers. Just

$XXX your Brooke so you settlement negative positive about roughly $XXX approximately million, Re that's decrease items about $XXX million mentioned I the with million saw. reinsurance So that that

Operator

from is the next question of The Ryan KBW. line Krueger with

Ryan Krueger

Brooke you the, the but happened you position given little Brooke more on can what bit Re Can color GAAP sequentially and us color give the just accounting -- between hedging did? some on on within one in what give we Brooke First some differences have Re Re. guess, results more as a was well results, Brooke where Re hedging I within the as GAAP the capital on

Laura Prieskorn

Sure, Ryan.

about hedge in we that So look directional net that versus at think our we a result nonoperating highlighted before talked kind see I indicator between expect exactly gain fact in same. yes, that the Brooke but GAAP the to more when I you there there what won't be would we they be of There's alignment Re, the GAAP results.

basis to that read note We of that a between just we're that work couple highlighted the how that a arrangement them those a But a couple GAAP, reported doing careful results, things the over we talked as Brooke of there we're Re are GAAP had did course, disclosed so differences of not modified across. GAAP we're we direct modifications. using which a versus and mention, would

aligned our for same in impacts just we to So again, what but statutory you what would MRB certainly, see seen GAAP. compare the be the much that the are in more means going past, when we would to exactly results liability as the not than nonoperating, directionally movements have

mention RILA business. point is related nonoperating results another impacts to also GAAP scope then And kind to of include under that the around

with over. is translate not not the was see GAAP result as over ceded hedging And there's also not of the RILA Brooke that Re. business movements the which that component there, associated those would of RILA into something Re derivatives you some part Brooke what since would So part embedded to is translate naturally,

We the But to think we of expected. compared what requirement. as we I to we referenced just very in and an increase Re, in kind minimum highlight capital of Re, capital saw results. In as our ended Overall, saw remain few just those Brooke position from an level So a GAAP well of quarter. bit reference we in to things. the our about you performed we operating how alignment the a with hedging summary, guess certainly capitalized Brooke

Ryan Krueger

the million Got work your to play the and free $XXX strategy step guidance free reason then difference then year, $XXX for Is to returns show cash million expectation difference and out maybe up the cash between this intended, flow the to more this that And say, time you're things to as big some closer to one primary something back past just flow. return the for just of time $XXX we And capital let's move as giving of the to, generation? million would that it. and capital it's demonstrate be allow then assuming you to effective. could closer that going

Laura Prieskorn

they our target long them time we've It an earlier, is that sustainable have to watch a we've return a grow. including to with are factor target, important sure that financial the make returns, spoken for targets, our to view our capital is the to fact I think, set the but as term And opportunity the as We develop. have arrangement. things want I Certainly, we historically, that opportunity we mentioned here. new set

for opportunity in it continue to movements to the business positive of will, will and that the So the certainly, type as some look an performance expect that here may we of future. lead we

Operator

from with the Evercore line is Next Tom question ISI. of Gallagher

Thomas Gallagher

you QX get outflows when now $X levels outflows went help of Would about this to higher points a with basis persistency continue, Can from versus you or on be expect up the went [indiscernible] closer are looks of and it up appreciated. Just the flows $X billion, last to bit that annuities, overall But little year get outflows near sales? talk level on going follow-up my about what's worse? is and like a Any at lapse look better, because quarter. ago. of for billion of rate retail by lot market also one would is your the I VA. AUM Part XXX a that part

Marcia Wadsten

full outflows, There's we within There's probably benefits down mean, keeping needs. Yes. Tom, partial and bought be sort of to benefits. Sure. When paying. death that being retirement the there claims in on the the of that that for draw guaranteed to support largely purpose withdrawals, we're able of that, very I X surrender mind, usage there's then VA related right? income would And look, people buckets the at

take people, think just time. kind I mean through by them just I benefits the It's of mortality I age block one. one think So as holders ages. to healthy

not sometimes probably dollar terms That's that's and of amounts that fact would book time the given sensitive. generally component over just be a upward time or expect out events. absolute said, you over values you drift the account terms, that going necessarily bit to of our But when in higher, of on that little component, that into size a the are would go as are aging higher sort these in that translates market that policyholders

and think a When that an about dollar is sensitive, or benefits we when when assumptions, in there's the lapse typically guarantees more the of that see the also that's larger, declines. there market market-sensitive dynamic kind the our lapse be are more are would means which downturn, be rate money outflow of than to benefits the following tends outflow the react adjustment out incorporated there, the but in money, the less to based said, full I moneyness AUMs higher, as that are does piece the downward go on that think tend we that but you surrenders, only, upward not amounts door market is

and expect policy for represents close And expect And what the activity lot XX% given guarantees, the we perspective. of use holders from that, And withdrawal, would time, at about of exactly an we being partial partial our third higher is those a withdrawal think bucket usage we've that outflow that the over of would those those recently, strong had upward the probably that quarter. surrender outflows of to the type is ready which really, they just of drift would more levels be more I be full it market So performance as then were again, surrender by they're stage one for. where would probably another age designed more into have would life to to you that driven a benefits. systematic

Thomas Gallagher

what they of analyze And the with you helpful. when those were notable split? buckets you say would in quarter? happened Or of kind X That's were any surrenders equally

Marcia Wadsten

are, I maybe partials. on about buckets said The the XX%

more would being we probably like benefit. think of I see that death XX%

piece the the and strong based one a would be would that, the point market mentioned, performance on as be at we've given just be at surrenders some I the that had a more that of the conditions, be more little point probably higher full recently. the would would So half be market moneyness fluctuation benefits, would that this to subject over

Operator

The line the Suneet with Jefferies. question is of next Kamath from

Suneet Kamath

the a wanted where the second. about from channels you're for to which a maybe in? RILA's talk having give is Just about most distribution you sense growth of and the a success just coming product bit talk just little Can

Laura Prieskorn

want to you do that? Scott, take

Scott Romine

It's RILA it new RILA advisers do. enabled of distribution sales bring all suite. product has continues protection-oriented doing with to another product to the strong We're continues suite, us that had exactly as added attract Jackson's distribution and Yes, our our sales sure. strong of to to We Laura we're to the what a and highlights solution to reach. results channels, distribution RILA consumer distribution was of across sales to breadth overall which success which our the And strength our designed expand momentum. seeing reach. seeing mentioned. Thanks for of partnerships really market diversification is question, value overall Suneet. the quarter, the our It's record

Laura optional enhancements the also +Income made New launching the just April, we in mentioned York. income in and rider new

out the distribution our believe RILA to strengths our space meaningful offerings. based that on there's competitive and So landscape for ample product we position us carve a in

Suneet Kamath

Got it. Marcia. then for And one last one just

about away So away talk gotten that had block capital size. RILA you as talked and you're I'm RILA assuming traditional the efficiency another has way VA. of given between the about of particular to a rule going capital We thumb efficiency rider of to might see sort to any start in if when terms you sizes there's of that to and the wanted of the from but some that just eroded? confirm business get relative that the efficiency

Marcia Wadsten

perspective, shared with speak from that that, Sure. quarter over offset the Yes. has RILA kind the just efficiency And an it last XX% offset the that reduce that XX%. to ability net delta we to first range. that that from the economic think was and given has sales quarter from I from perspective over additional increased I can to and an say our perspective needs that, a hedging We of did equity in

in Brooke I modified or we've But we have have XXX% certainly we Re before reporting would don't basis, same to we're VA ways that that. not and offset anything out place to Brooke the structure a go Re that the are that So VM-XX. offset got our -- point now have since guarantees following seated we don't in

necessarily don't impacted would We expecting we're our offset, full the and get how in VM-XX evident we parity, a we reach a between guess, would change from but book. the offset, efficiencies full see have have were in so capital we VA is I if which the to the not hedging a offset, economic we be the perspective, RILA

Suneet Kamath

one, I charge is RILA? And thumb helpful. rule I could you but it. know there's capital share, that don't of the What one if then last a would for just if could. Got typical be

Marcia Wadsten

is here. the of off of Maybe an kind head just X%, approximate top probably our

Operator

call Laura waiting no are would remarks. Prieskorn, I questions There this time. to the to over at further for like final turn CEO, the

Laura Prieskorn

forward We today, appreciate and you. speaking care. you to joining again us look Thank with we Take soon. you

Operator

Jackson the concludes Inc. That Financial

you First the enjoy Quarter participation, your Earnings your Call. day. Thank of and XXXX for rest

Jackson Financial (JXN) 9 May 242024 Q1 Earnings call transcript