British insurer Prudential Plc. will spin off its American businesses, which include Jackson National Life Insurance Co., 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, and Jackson does not currently expect to remit any regular dividends to Prudential Plc in 2020 or 2021 prior to an IPO, the release stated.
A Jackson spokesman said the insurer would have no further details at this time.
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%.
Jackson today announced its half-year financial results, generating $1.3 billion in pre-tax operating income during the first half of 2020. Jackson also reported $9.8 billion in sales and deposits.
“The COVID-19 pandemic continues to create hardship and disruption in the lives of millions of Americans,” said Michael Falcon, chief executive officer of Jackson Holdings. “Consumers value the benefits our products provide, and these needs are highlighted during volatile markets. Throughout the first half of the year, we have adapted our business to ensure we continue to deliver on our ongoing commitment to helping Americans seek protection amid uncertainty, as they transition to and through retirement.”
On June 18, 2020, Jackson entered into an agreement with Athene Holding to fully reinsure $27.6 billion of the company’s in-force book of fixed and fixed index annuity liabilities in exchange for $1.2 billion in ceding commission from Athene.
Falcon said the recent Athene agreement further strengthens Jackson’s capital position, as the company continues to deliver on its long-term strategic objectives while serving the growing population of American savers seeking to build financial freedom for life.