Jackson National Lays Off 150 Associates

Jackson National Life Insurance Co. became the latest insurer today to announce layoffs due to the pandemic business slowdown.

The company is laying off about 150 people, a company spokesman confirmed in an emailed statement.

"Due to economic conditions and a decline in industry sales, we have implemented staffing-level changes, including realignments and eliminations, across Jackson," the statement reads. "These changes have resulted in a headcount reduction of approximately 150 associates. We value and appreciate the contributions of all our associates and are committed to a thoughtful transition for those personally affected by this decision."

Several insurers, including Pacific Life, MetLife and Transamerica, have announced layoffs in recent weeks.

The move comes barely three months after British insurer Prudential Plc. announced that it will spin off its American businesses, which include Jackson National, in order to focus on operations in Asia and Africa.

Prudential Plc. will "pursue a full separation of Jackson by way of a minority Initial Public Offering (IPO) followed by full divestment over time," Jackson said in a news release. The U.S. listing is planned for the first half of 2021.

According to the Secure Retirement Institute, U.S. annuity sales rankings, Jackson was the top seller of total annuities in 2019. Jackson retook the lead position after losing it to AIG in 2018.

Nevertheless, in the first half of 2020, Jackson’s profit fell by 19%.

Reinsurance Deal

In June, Jackson National announced a deal with Athene Holding, a leading provider of retirement savings products, to fully reinsure $27.6 billion of Jackson’s in-force book of fixed and fixed index annuity liabilities in exchange for approximately $1.25 billion in ceding commission.

The rest of Jackson National's statement on the layoffs reads:

“Jackson remains focused on serving the U.S. retirement market and committed to the continuous assessment of the resources and capabilities of our organization. It is this discipline that enables us to be positioned to serve our customers and distribution partners, and successfully transition into the future, during uncertain times.

"While these changes are never easy, they are critical for us to achieve the right scale and flexibility to meet market demands. What is not changing is our commitment to continuing to provide a superior level of support for financial professionals and the clients they serve through the largest distribution force in the industry and our award-winning customer service. We remain focused on delivering on our long-term strategic objectives as we continue helping Americans secure protection amid uncertainty as they transition to and through retirement.”

InsuranceNewsNet Senior Editor John Hilton has covered business and other beats in more than 20 years of daily journalism. John may be reached at [email protected]. Follow him on Twitter @INNJohnH.

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InsuranceNewsNet Senior Editor John Hilton has covered business and other beats in more than 20 years of daily journalism. John may be reached at [email protected]. Follow him on Twitter @INNJohnH.