Workers expect their defined contribution plans to play a greater role in their retirement income than annuities.
LANSING, Mich. ¾ March 12, 2014 ¾ Jackson National Life Insurance Company® (Jackson®) generated a record level of $2.0 billion in IFRS pretax operating income during 2013, an increase of 28.0 percent over 2012. IFRS net income for December 31, 2013 was $730 million.
Jackson also reported record total sales and deposits of $27.3 billion, 7.3 percent higher than the prior year. The key driver of this increase in 2013 was Jackson’s newest variable annuity product, Elite Access®, which provides tax efficient access to alternative investments. Elite Access contributed $4.0 billion in total sales in 2013, up from $1.3 billion in 2012.
“In 2013, Jackson remained focused on our key strengths and we are pleased with the strong performance which is a result of our continued discipline,” said Mike Wells, Jackson’s president and chief executive officer. “During the year, with the success of our most recent product, Elite Access, we were able to achieve record sales while we continued to diversify our risk profile. In addition, we maintained our strong capital position while growing our business and paying a significant dividend to our parent.”
Jackson, an indirect wholly owned subsidiary of the United Kingdom’s Prudential plc (NYSE: PUK), increased total IFRS assets to $191.5 billion at the end of 2013, up from $165.4 billion at the end of 2012. As of December 31, 2013, Jackson had $4.8 billion of regulatory adjusted capital, approximately nine times the minimum regulatory requirement.
Throughout the economic cycles, Jackson has maintained its financial strength. During 2013, all four primary rating agencies—A.M. Best, Standard & Poor’s, Fitch Ratings and Moody’s Investors Service, Inc.—affirmed Jackson’s financial strength ratings. Jackson has maintained the same financial strength ratings for more than 10 years. As of March 12, 2014, Jackson had the following ratings: