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LANSING, Mich. - August 12, 2014 - Jackson National Life Insurance Company® (Jackson®) generated a record $1.1 billion in IFRS pretax operating income during the first half of 2014, an increase of 20 percent over the first half of 2013. This overall increase was primarily driven by increased fee income on higher separate account assets under management. The separate account growth resulted from both strong net flows and positive market appreciation during the first half of 2014. Jackson, an indirect wholly owned subsidiary of the United Kingdom’s Prudential plc (NYSE: PUK), recorded sales and deposits for the first half of $15.9 billion, up 16 percent over same period last year.
“In the first half of 2014, we continued to expand the Jackson franchise through profitable sales growth while maintaining pricing discipline and a strong capital position,” said Mike Wells, Jackson president and chief executive officer. “We continue to actively manage the sales volume of our variable annuity business, and with the continued success of Elite Access®, improve the diversification of our product mix which helps to balance our revenue streams. This excellent first-half performance allowed Jackson to remit a $580 million dividend to our parent company while maintaining a strong capital position.”
Jackson’s net income was impacted by hedging losses incurred in the equity market which were not fully offset by the related release of accounting reserves. IFRS accounting for variable annuity liabilities is not necessarily consistent with the economic value of these liabilities. Jackson continues to manage its hedge program on an economic basis and is willing to accept the accounting volatility that results.