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August 13, 2024 Reinsurance No comments

Jackson National Life Insurance Company 2Q 2024 statutory statement

U.S. Markets via PUBT

QUARTERLY STATEMENT

OF THE

JACKSON NATIONAL LIFE INSURANCE COMPANY

TO THE

Insurance Department

OF THE

STATE OF

Michigan

FOR THE QUARTER ENDED

JUNE 30, 2024

[ X ] LIFE, ACCIDENT AND HEALTH

[ ] FRATERNAL BENEFIT SOCIETIES

2024

.MI

STATEMENT AS OF JUNE 30, 2024 OF THE JACKSON NATIONAL LIFE INSURANCE COMPANY

ASSETS

				Current Statement Date		4
			1	2		3	December 31
						Net Admitted Assets	Prior Year Net
			Assets	Nonadmitted Assets		(Cols. 1 - 2)	Admitted Assets
1.	Bonds	.......... 35,340,645,692	.................................0	..........	35,340,645,692	...........38,257,779,802
2.	Stocks:
	2.1	Preferred stocks	170,371,891	0	................	170,371,891	................172,812,053
	2.2 Common stocks	963,685,265	1,847,716	................	961,837,549	............ 1,105,540,606
3.	Mortgage loans on real estate:
	3.1	First liens	9,748,617,149	0	............	9,748,617,149	.......... 10,278,311,557
	3.2	Other than first liens	0	0	.................................	0	.................................0

4. Real estate:

	4.1 Properties occupied by the company (less $	0
	.......................................................................................encumbrances)		................211,503,317	.................................0	................211,503,317	................213,878,327
	4.2 Properties held for the production of income (less
	$	0 encumbrances)	................... 7,172,124	.................................0	................... 7,172,124	................... 7,172,124
	4.3 Properties held for sale (less $	0
	encumbrances)		...................6,099,201	.................................0	...................6,099,201	................... 5,541,097
5.	Cash ($	(245,243,556) ), cash equivalents
	($	469,012,179	) and short-term
	investments ($	527,632,759 )	................751,401,382	.................................0	................751,401,382	............ 2,064,327,463
6.	Contract loans (including $	.................................0	premium notes)	............ 4,174,495,298	................... 1,895,037	............ 4,172,600,261	............ 4,241,715,886
7.	.....................................................................................................Derivatives			..............(119,019,913)	.................................0	..............(119,019,913)	................. 84,816,291
8.	Other invested assets		............ 2,279,749,868	................... 3,045,509	............ 2,276,704,359	............ 2,083,122,612
9.	Receivables for securities		................. 52,671,106	.................................0	................. 52,671,106	................. 48,966,740
10.	..............................................Securities lending reinvested collateral assets	................. 10,258,432	.................................0	................. 10,258,432	................. 13,049,799
11.	.........................................................Aggregate write-ins for invested assets	.................................0	.................................0	.................................0	.................................0
12.	.....................................Subtotals, cash and invested assets (Lines 1 to 11)	.......... 53,597,650,812	................... 6,788,262	.......... 53,590,862,549	...........58,577,034,357
13.	Title plants less $ .................................0 charged off (for Title insurers
	only)			.................................0	.................................0	.................................0	.................................0
14.	.............................................................Investment income due and accrued	................656,268,013	................... 1,128,973	................655,139,040	................585,905,472
15.	Premiums and considerations:
	15.1 Uncollected premiums and agents' balances in the course of collection	................206,024,275	................... 2,034,916	................203,989,359	................160,710,608
	15.2 Deferred premiums, agents' balances and installments booked but
	deferred and not yet due (including $	0
	............................................................earned but unbilled premiums)	................. 40,628,875	.................................0	................. 40,628,875	................. 42,373,841
	15.3 Accrued retrospective premiums ($	0 ) and
	contracts subject to redetermination ($	0 )	.................................0	0	0	0

16. Reinsurance:

	16.1 Amounts recoverable from reinsurers	232,757,654	0	232,757,654	232,890,590
	..........................16.2 Funds held by or deposited with reinsured companies	0	.................................0	.................................0	.................................0
	........................16.3 Other amounts receivable under reinsurance contracts	............ 3,361,194,502	.................................0	............ 3,361,194,502	................(92,901,597)
17.	............................................Amounts receivable relating to uninsured plans	.................................0	.................................0	.................................0	.................................0
18.1	Current federal and foreign income tax recoverable and interest thereon ....	................... 3,365,877	.................................0	................... 3,365,877	.................................0
18.2	Net deferred tax asset	............ 2,252,599,213	............ 1,722,637,951	............... 529,961,262	................606,942,316
19.	......................................................Guaranty funds receivable or on deposit	................... 1,545,323	.................................0	................... 1,545,323	...................1,646,582
20.	.....................................Electronic data processing equipment and software	................... 2,472,483	.................................0	................... 2,472,483	................... 2,570,567
21.	Furniture and equipment, including health care delivery assets
	($	0 )	................. 16,754,656	................. 16,754,656	.................................0	.................................0
22.	Net adjustment in assets and liabilities due to foreign exchange rates	.................................0	.................................0	.................................0	.................................0
23.	.....................................Receivables from parent, subsidiaries and affiliates	.................................0	.................................0	.................................0	.................................0
24.	Health care ($	0 ) and other amounts receivable	.................................0	.................................0	.................................0	.................................0
25.	........................................Aggregate write-ins for other than invested assets	................397,151,874	................. 67,649,481	................329,502,393	............ 1,010,759,655
26.	Total assets excluding Separate Accounts, Segregated Accounts and
	Protected Cell Accounts (Lines 12 to 25)	.......... 60,768,413,557	............ 1,816,994,239	.......... 58,951,419,317	.......... 61,127,932,391
27.	From Separate Accounts, Segregated Accounts and Protected Cell
	Accounts	.........219,698,181,543	.................................0	.........219,698,181,543	.........208,449,178,509
28.	Total (Lines 26 and 27)		280,466,595,100	1,816,994,239	278,649,600,860	269,577,110,900
	DETAILS OF WRITE-INS
1101.	......................................................................................................................	....................................	....................................	....................................	....................................
1102.	......................................................................................................................	....................................	....................................	....................................	....................................
1103.	......................................................................................................................	....................................	....................................	....................................	....................................
1198.	...................Summary of remaining write-ins for Line 11 from overflow page	.................................0	.................................0	.................................0	.................................0
1199.	Totals (Lines 1101 through 1103 plus 1198)(Line 11 above)	0	0	0	0
2501.	Agents' balances (net)	................... 4,230,944	................... 4,230,944	.................................0	.................................0
2502.	...............................................Capitalized software and associated costs	................. 18,335,068	................. 18,335,068	.................................0	.................................0
2503.	Admitted disallowed IMR	................339,572,592	................. 10,567,668	................329,004,924	................252,976,820
2598.	...................Summary of remaining write-ins for Line 25 from overflow page	................. 35,013,270	................. 34,515,801	...................... 497,469	................757,782,835
2599.	Totals (Lines 2501 through 2503 plus 2598)(Line 25 above)	397,151,874	67,649,481	329,502,393	1,010,759,655

STATEMENT AS OF JUNE 30, 2024 OF THE JACKSON NATIONAL LIFE INSURANCE COMPANY

LIABILITIES, SURPLUS AND OTHER FUNDS

					1	2
					Current	December 31
					Statement Date	Prior Year
1.	Aggregate reserve for life contracts $	.......... 24,190,453,303 less $	.................................0 included in Line 6.3
	(including $	0	Modco Reserve)	24,190,453,303	25,250,874,249
2.	Aggregate reserve for accident and health contracts (including $	0 Modco Reserve)	0	0
3.	Liability for deposit-type contracts (including $	0 Modco Reserve)	7,870,968,441	9,011,731,922

4. Contract claims:

	4.1	Life				755,994,654	760,037,227
	4.2	Accident and health				0	0
5.	Policyholders' dividends/refunds to members $	55,258	and coupons $	0	due
	................................................................................................................................................................................and unpaid				55,258	...................... 181,675
6.	Provision for policyholders' dividends, refunds to members and coupons payable in following calendar year - estimated
	amounts:
	6.1	Policyholders' dividends and refunds to members apportioned for payment (including $	0
		Modco)				................... 8,013,731	................... 8,017,618
	6.2	...............................Policyholders' dividends and refunds to members not yet apportioned (including $	0	Modco) ....	.................................0	..........................5,868
	6.3	Coupons and similar benefits (including $	0	Modco)		30,713	34,124
7.	Amount provisionally held for deferred dividend policies not included in Line 6		0	0

8. Premiums and annuity considerations for life and accident and health contracts received in advance less

	$	.................................0	discount; including $	0	accident and health premiums	.........................	...................1,959,159	...................2,001,208
9.	Contract liabilities not included elsewhere:
	9.1	Surrender values on canceled contracts			.......................367,932	.......................360,722
	9.2	Provision for experience rating refunds, including the liability of $ .................................0 accident and health
		experience rating refunds of which $	0 is for medical loss ratio rebate per the Public Health
		Service Act				.................................0	.................................0
	9.3 Other amounts payable on reinsurance, including $	(60,958,665) assumed and $	286,112,342
		ceded				................225,153,677	................(42,328,628)
	9.4 Interest Maintenance Reserve			.................................0	.................................0
10.	Commissions to agents due or accrued-life and annuity contracts $	123,784,392 , accident and health
	$	.................................0 and deposit-type contract funds $	0	................123,784,392	................119,287,510
11.	..............................................................................Commissions and expense allowances payable on reinsurance assumed		................... 7,159,407	................... 7,009,646
12.	............................................................................................................................................General expenses due or accrued			................139,045,121	................208,003,317
13.	Transfers to Separate Accounts due or accrued (net) (including $	(4,452,042,594) accrued for expense
	allowances recognized in reserves, net of reinsured allowances)		...........(4,151,770,643)	.......... (4,499,523,716)
14.	Taxes, licenses and fees due or accrued, excluding federal income taxes		...................2,198,982	...................2,506,082
15.1 Current federal and foreign income taxes, including $	..............0 on realized capital gains (losses)	.................................0	...................... 720,888
15.2	.............................................................................................................................................................Net deferred tax liability				.................................0	.................................0
16.	...................................................................................................................................................Unearned investment income			................... 5,539,930	...................5,856,806
17.	Amounts withheld or retained by reporting entity as agent or trustee		................... 9,285,325	................. (4,495,899)
18.	Amounts held for agents' account, including $	7,303,909 agents' credit balances	................... 7,303,909	.......................665,733
19.	........................................................................................................................................Remittances and items not allocated			................. 49,446,691	................. 40,834,317
20.	....................................................................................Net adjustment in assets and liabilities due to foreign exchange rates		.................................0	.................................0
21.	.......................................................................................Liability for benefits for employees and agents if not included above		.................................0	.................................0
22.	Borrowed money $	552,934,216 and interest thereon $	432,391	................553,366,607	................307,617,779
23.	Dividends to stockholders declared and unpaid			0	0

24. Miscellaneous liabilities:


	24.01	Asset valuation reserve			608,632,461	489,670,272
	.................................24.02 Reinsurance in unauthorized and certified ($	0 ) companies	3,714,597	.................................0
	.................................24.03 Funds held under reinsurance treaties with unauthorized and certified ($	0 ) reinsurers	............ 3,684,724,114	............ 3,628,585,238
	24.04	..................................................................................................................Payable to parent, subsidiaries and affiliates		................139,871,741	................153,040,015
	24.05	Drafts outstanding			.................................0	.................................0
	24.06	Liability for amounts held under uninsured plans		.................................0	.................................0
	24.07	Funds held under coinsurance			.......... 17,512,730,696	.......... 18,856,107,393
	24.08	Derivatives			................554,977,230	................904,690,876
	24.09	Payable for securities			................267,142,647	................... 4,882,769
	24.10	Payable for securities lending			................. 10,258,432	................. 13,049,799
	.................................24.11 Capital notes $	0 and interest thereon $	...........................................0	.................................0	.................................0
25.	Aggregate write-ins for liabilities			2,305,501,976	1,245,885,934
26.	Total liabilities excluding Separate Accounts business (Lines 1 to 25)		54,885,910,483	56,475,310,744
27.	From Separate Accounts Statement			219,698,181,543	208,449,178,509
28.	Total liabilities (Lines 26 and 27)			274,584,092,026	264,924,489,253
29.	Common capital stock			13,800,000	13,800,000
30.	..............................................................................................................................................................Preferred capital stock			.................................0	.................................0
31.	Aggregate write-ins for other than special surplus funds		.................................0	.................................0
32.	Surplus notes			................249,843,245	................249,817,050
33.	.......................................................................................................................................Gross paid in and contributed surplus			............ 2,711,221,039	............ 4,631,054,966
34.	...........................................................................................................................Aggregate write-ins for special surplus funds		................329,004,924	................252,976,820
35.	Unassigned funds (surplus)			761,639,626	(495,027,189)

36. Less treasury stock, at cost:

	36.1	0	shares common (value included in Line 29	$	.................................0	)	.................................0	.................................0
	36.2	0	shares preferred (value included in Line 30	$	.................................0	)	0	.................................0
37.	Surplus (Total Lines 31+32+33+34+35-36) (including $	0 in Separate Accounts Statement)	4,051,708,834	4,638,821,647
38.	Totals of Lines 29, 30 and 37	...................................................................................................................................................			4,065,508,834	4,652,621,647
39.	Totals of Lines 28 and 38 (Page 2, Line 28, Col. 3)				278,649,600,860	269,577,110,900
	DETAILS OF WRITE-INS
2501.	Deferred compensation					................304,530,537	................308,505,241
2502.	Deferred rent					................... 4,407,553	................... 5,217,431
2503.	Founders Plan liability					........................ 31,000	........................ 73,356
2598.	..............................................................................................Summary of remaining write-ins for Line 25 from overflow page			............ 1,996,532,886	................932,089,906
2599.	Totals (Lines 2501 through 2503 plus 2598)(Line 25 above)				2,305,501,976	1,245,885,934
3101	....................................	....................................
3102	....................................	....................................
3103	....................................	....................................
3198.	..............................................................................................Summary of remaining write-ins for Line 31 from overflow page			.................................0	.................................0
3199.	Totals (Lines 3101 through 3103 plus 3198)(Line 31 above)
			0	0
3401.	Admitted disallowed IMR					329,004,924	252,976,820

3402	....................................	....................................
3403	....................................	....................................
3498.	Summary of remaining write-ins for Line 34 from overflow page	.................................0	.................................0
3499.	Totals (Lines 3401 through 3403 plus 3498)(Line 34 above)	329,004,924	252,976,820

STATEMENT AS OF JUNE 30, 2024 OF THE JACKSON NATIONAL LIFE INSURANCE COMPANY

SUMMARY OF OPERATIONS

				1	2	3
				Current Year	Prior Year	Prior Year Ended
				To Date	To Date	December 31
1.	Premiums and annuity considerations for life and accident and health contracts	............ 7,922,520,425	............ 6,460,440,511	.......... 13,227,578,114
2.	.....................................................Considerations for supplementary contracts with life contingencies	.......................338,242	...................... 340,652	................... 1,443,096
3.	Net investment income		............ 1,491,615,082	............ 1,416,561,277	............ 2,854,546,582
4.	Amortization of Interest Maintenance Reserve (IMR)	................. (4,639,708)	.............. (747,371,479)	..............(732,212,449)
5.	Separate Accounts net gain from operations excluding unrealized gains or losses	................. 84,506,791	................. 93,796,003	............... 210,501,922
6.	Commissions and expense allowances on reinsurance ceded	............ 1,229,245,966	................. 26,841,097	................. 54,250,064
7.	Reserve adjustments on reinsurance ceded	.................................0	.................................0	.................................0
8.	Miscellaneous Income:
	8.1 Income from fees associated with investment management, administration and contract
	guarantees from Separate Accounts	............ 1,327,211,899	............ 2,660,005,675	............ 5,381,405,978
	.................................................................................8.2 Charges and fees for deposit-type contracts	.................................0	.................................0	.................................0
	8.3 Aggregate write-ins for miscellaneous income	359,466,150	342,034,251	696,024,124
9.	Totals (Lines 1 to 8.3)		12,410,264,847	10,252,647,987	21,693,537,431
10.	Death benefits		459,018,459	................488,201,532	................959,746,507
11.	...........................................Matured endowments (excluding guaranteed annual pure endowments)	................... 3,396,259	................... 3,481,815	................... 7,461,284
12.	Annuity benefits		............ 1,808,140,687	............ 1,726,905,402	............ 3,368,373,749
13.	..................................................Disability benefits and benefits under accident and health contracts	................... 6,082,972	................... 6,176,689	................. 12,986,326
14.	.................................................Coupons, guaranteed annual pure endowments and similar benefits	........................ 23,668	........................ 32,290	........................ 60,543
15.	Surrender benefits and withdrawals for life contracts	.......... 13,558,124,664	............ 9,103,192,135	.......... 19,641,071,563
16.	Group conversions		.................................0	.................................0	.................................0
17.	Interest and adjustments on contract or deposit-type contract funds	................166,387,182	................157,291,805	................329,305,130
18.	............................................................Payments on supplementary contracts with life contingencies	................... 7,680,007	................... 7,919,688	................. 15,416,294
19.	Increase in aggregate reserves for life and accident and health contracts	(1,060,420,940)	(1,415,439,186)	(2,528,619,250)
20.	Totals (Lines 10 to 19)		.......... 14,948,432,958	...........10,077,762,170	.......... 21,805,802,146
21.	Commissions on premiums, annuity considerations, and deposit-type contract funds (direct
	business only)		................907,758,635	................788,865,984	............ 1,608,629,730
22.	......................................................Commissions and expense allowances on reinsurance assumed	................. 83,483,834	................. 72,056,435	................144,233,819
23.	..........................................................................General insurance expenses and fraternal expenses	................404,175,211	................361,457,405	................767,893,774
24.	...................................................Insurance taxes, licenses and fees, excluding federal income taxes	................. 18,364,652	................. 16,669,679	................. 40,013,910
25.	Increase in loading on deferred and uncollected premiums	.....................(390,957)	................. (1,209,302)	................. (1,624,402)
26.	........................................................Net transfers to or (from) Separate Accounts net of reinsurance	...........(5,790,549,317)	.......... (2,799,080,361)	.......... (6,514,053,536)
27.	Aggregate write-ins for deductions	1,126,854,038	527,769,062	1,049,725,454
28.	Totals (Lines 20 to 27)		11,698,129,054	9,044,291,072	18,900,620,895
29.	Net gain from operations before dividends to policyholders and federal income taxes (Line 9 minus
	Line 28)		................712,135,793	............ 1,208,356,915	............ 2,792,916,536
30.	Dividends to policyholders and refunds to members	4,063,406	4,653,355	8,386,105
31.	Net gain from operations after dividends to policyholders, refunds to members and before federal
	income taxes (Line 29 minus Line 30)	................708,072,387	............ 1,203,703,560	............ 2,784,530,431
32.	Federal and foreign income taxes incurred (excluding tax on capital gains)	266,882,184	665,184,633	966,356,102
33.	Net gain from operations after dividends to policyholders, refunds to members and federal income
	taxes and before realized capital gains or (losses) (Line 31 minus Line 32)	................441,190,203	................538,518,927	............ 1,818,174,329
34.	Net realized capital gains (losses) (excluding gains (losses) transferred to the IMR) less capital
	gains tax of $	(191,673,704) (excluding taxes of $	(10,704,446)
	transferred to the IMR)		(774,867,474)	(1,440,969,641)	(1,939,868,362)
35.	Net income (Line 33 plus Line 34)	(333,677,271)	(902,450,714)	(121,694,033)
		CAPITAL AND SURPLUS ACCOUNT
36.	Capital and surplus, December 31, prior year	4,652,621,647	5,987,417,659	5,987,417,659
37.	Net income (Line 35)		(333,677,271)	..............(902,450,714)	..............(121,694,033)
38.	Change in net unrealized capital gains (losses) less capital gains tax of $	............ (74,918,620)	..............(245,484,164)	..............(992,369,168)	..............(652,824,962)
39.	Change in net unrealized foreign exchange capital gain (loss)	.................................0	.................................0	.................................0
40.	......................................................................................................Change in net deferred income tax	................. 11,318,833	................334,344,352	................398,027,531
41.	Change in nonadmitted assets	................129,927,267	..............(977,274,282)	..............(768,984,879)
42.	Change in liability for reinsurance in unauthorized and certified companies	................. (3,714,597)	.....................(429,250)	................. 33,126,114
43.	Change in reserve on account of change in valuation basis, (increase) or decrease	.................................0	.................................0	.................................0
44.	.......................................................................................................Change in asset valuation reserve	..............(118,962,189)	................521,061,838	................497,303,304
45.	Change in treasury stock		.................................0	.................................0	.................................0
46.	Surplus (contributed to) withdrawn from Separate Accounts during period	................. 84,506,791	................. 93,796,003	............... 210,501,922
47.	Other changes in surplus in Separate Accounts Statement	................(84,506,791)	................(93,796,003)	..............(210,501,922)
48.	Change in surplus notes		........................ 26,195	........................ 23,555	........................ 48,180
49.	........................................................................Cumulative effect of changes in accounting principles	.................................0	.................................0	.................................0
50.	Capital changes:
	50.1 Paid in		.................................0	.................................0	.................................0
	50.2 Transferred from surplus (Stock Dividend)	.................................0	.................................0	.................................0
	..................................................................................................................50.3 Transferred to surplus	.................................0	.................................0	.................................0
51.	Surplus adjustment:
	51.1 Paid in		...........(1,919,833,927)	..............(150,000,000)	..............(150,000,000)
	51.2 Transferred to capital (Stock Dividend)	.................................0	.................................0	.................................0
	51.3 Transferred from capital	.................................0	.................................0	.................................0
	...............................................................................51.4 Change in surplus as a result of reinsurance	............ 1,026,931,551	................(62,415,930)	..............(119,797,266)
52.	Dividends to stockholders	....................................................................................................................	..............(250,000,000)	..............(450,000,000)	..............(450,000,000)
53.	Aggregate write-ins for gains and losses in surplus	1,116,355,489	0	0
54.	Net change in capital and surplus for the year (Lines 37 through 53)	(587,112,813)	(2,679,509,599)	(1,334,796,011)
55.	Capital and surplus, as of statement date (Lines 36 + 54)		4,065,508,834	3,307,908,060	4,652,621,647
	DETAILS OF WRITE-INS
..............................................................................................................08.301. General account policy fees	................. 34,676,344	................. 45,244,162	................. 83,720,714
08.302. Marketing fees		................328,591,123	................297,506,905	................607,866,268
..........................................................................................................................08.303. Miscellaneous income		................. (6,158,958)	...................... 680,790	................... 7,333,964
........................................................08.398. Summary of remaining write-ins for Line 8.3 from overflow page	................... 2,357,641	................. (1,397,606)	................. (2,896,822)
08.399. Totals (Lines 08.301 through 08.303 plus 08.398) (Line 8.3 above)		359,466,150	342,034,251	696,024,124
2701.	Additional contract benefits to Founders Plan policyholders	27,839	........................ 37,471	........................ 73,406
2702.	.................................................................................................................Interest on funds withheld treaties	523,112,023	................590,147,522	............ 1,169,449,314
2703.	Reclassification of ceding commission to surplus	............ 1,170,900,000	.................................0	.................................0
2798.	.........................................................Summary of remaining write-ins for Line 27 from overflow page	..............(567,185,824)	................(62,415,931)	..............(119,797,266)
2799.	Totals (Lines 2701 through 2703 plus 2798)(Line 27 above)		1,126,854,038	527,769,062	1,049,725,454
5301.	Change in unrealized on derivatives receivable from Brooke Re less capital gains tax of
	$296,752,725		1,116,355,489	.................................0	.................................0

5302	....................................	....................................	....................................
5303	....................................	....................................	....................................
5398.	Summary of remaining write-ins for Line 53 from overflow page	.................................0	.................................0	.................................0
5399.	Totals (Lines 5301 through 5303 plus 5398)(Line 53 above)	1,116,355,489	0	0

STATEMENT AS OF JUNE 30, 2024 OF THE JACKSON NATIONAL LIFE INSURANCE COMPANY

CASH FLOW

			1	2	3
			Current Year	Prior Year	Prior Year Ended
			To Date	To Date	December 31
	Cash from Operations
1.	Premiums collected net of reinsurance
............ 7,882,066,870	............ 6,468,752,356	...........13,259,779,354
2.	Net investment income	............ 1,047,257,209	............ 1,278,792,149	............ 2,489,559,303
3.	Miscellaneous income	4,060,461,214	3,027,848,751	6,127,179,131
4.	Total (Lines 1 to 3)	12,989,785,293	10,775,393,256	21,876,517,788
5.	Benefit and loss related payments	.......... 15,962,921,579	.......... 11,416,548,898	.......... 24,164,286,659
6.	.................Net transfers to Separate Accounts, Segregated Accounts and Protected Cell Accounts	.......... (6,798,200,818)	.......... (3,241,968,104)	.......... (6,861,122,661)
7.	...............................................Commissions, expenses paid and aggregate write-ins for deductions	............ 1,673,201,775	............ 1,446,779,287	............ 2,951,813,188
8.	Dividends paid to policyholders	................... 4,199,578	................... 4,674,497	................... 8,527,033
9.	Federal and foreign income taxes paid (recovered) net of $	0 tax on capital
	gains (losses)	77,042,150	(227,422)	(22,119,793)
10.	Total (Lines 5 through 9)	10,919,164,264	9,625,807,156	20,241,384,426
11.	Net cash from operations (Line 4 minus Line 10)	2,070,621,029	1,149,586,100	1,635,133,362

Cash from Investments

12. Proceeds from investments sold, matured or repaid:

12.1	Bonds	............ 3,308,293,399	............ 3,196,986,215	............ 7,790,461,978
12.2	Stocks	................231,276,572	................199,863,621	................239,490,638
12.3	Mortgage loans	................750,544,366	............ 1,341,054,107	............ 2,077,633,262
12.4	Real estate	................... 1,997,756	........................ 57,307	................... 4,418,748
12.5	Other invested assets	............... 121,802,115	................348,074,509	............... 928,952,468
12.6	Net gains or (losses) on cash, cash equivalents and short-term investments	.................................0	.................................0	.................................0
12.7	Miscellaneous proceeds	(2,796,777,492)	(2,679,089,032)	(2,484,913,742)
12.8 Total investment proceeds (Lines 12.1 to 12.7)	............ 1,617,136,716	............ 2,406,946,727	............ 8,556,043,352
13. Cost of investments acquired (long-term only):
13.1	Bonds	............ 1,185,711,869	............ 1,942,291,879	............ 2,828,856,359
13.2	Stocks	................. 48,115,536	...................4,520,009	................195,330,932
13.3	Mortgage loans	............... 240,168,588	................569,401,872	................837,866,956
13.4	Real estate	................... 1,390,307	...................... 712,052	................... 2,263,257
13.5	Other invested assets	................223,349,908	................271,980,640	................450,378,654
13.6	Miscellaneous applications	198,539,478	1,425,840,211	1,902,317,323
13.7	Total investments acquired (Lines 13.1 to 13.6)	1,897,275,686	4,214,746,663	6,217,013,481
14. Net increase (or decrease) in contract loans and premium notes	(69,098,077)	(100,428,244)	18,277,683
15. Net cash from investments (Line 12.8 minus Line 13.7 and Line 14)	(211,040,893)	(1,707,371,692)	2,320,752,188

Cash from Financing and Miscellaneous Sources

Cash provided (applied):
1. Surplus notes, capital notes .......................................................................................................
2. Capital and paid in surplus, less treasury stock .........................................................................
3. Borrowed funds ..........................................................................................................................
4. Net deposits on deposit-type contracts and other insurance liabilities .......................................
5. Dividends to stockholders ..........................................................................................................
6. Other cash provided (applied) ....................................................................................................
Net cash from financing and miscellaneous sources (Line 16.1 through Line 16.4 minus Line 16.5 plus Line 16.6) ..................................................................................................................................

.................................0	.................................0	.................................0

.......... (1,720,900,000)	..............(150,000,000)	..............(150,000,000)
................245,750,000	................. (4,250,000)	................244,960,527
.......... (1,282,878,584)	..............(168,678,183)	.......... (1,143,229,189)
............... 250,000,000	............... 450,000,000	............... 450,000,000
(164,477,632)	(1,408,462,012)	(4,551,648,068)
(3,172,506,216)	(2,181,390,194)	(6,049,916,730)

	RECONCILIATION OF CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS
18.	Net change in cash, cash equivalents and short-term investments (Line 11, plus Lines 15 and 17) .	.......... (1,312,926,080)	...........(2,739,175,786)	.......... (2,094,031,180)
19.	Cash, cash equivalents and short-term investments:
	19.1 Beginning of year	............ 2,064,327,463	............ 4,158,358,643	............ 4,158,358,643
	19.2 End of period (Line 18 plus Line 19.1)	751,401,382	1,419,182,857	2,064,327,463

Note: Supplemental disclosures of cash flow information for non-cash transactions:

20.0001.	Debt and equity securities acquired from exchange, PIK and other transactions	................. 25,534,524	.................................0	............... 446,816,656
20.0002.	Debt and equity securities disposed from exchange transactions	................. 19,646,247	.................................0	................437,005,574
20.0003.	Non-cashfinancial assets transferred to parent	................197,655,526	.................................0	.................................0
20.0004.	Non-cashfinancial assets transferred to subsidiary	................. 10,844,985	...................2,500,000	................... 8,155,867
20.0005.	Non-cash financial assets transferred to separate account	.................................0	.................................0	............... 222,115,855
20.0006.	Transfer of debt securities for debt securities and / or equity securities	.................................0	................135,741,870	.................................0
20.0007.	Transfer of debt securities to Brooke Re for reinsurance settlement	............... 419,002,962	.................................0	.................................0

STATEMENT AS OF JUNE 30, 2024 OF THE JACKSON NATIONAL LIFE INSURANCE COMPANY

EXHIBIT 1

DIRECT PREMIUMS AND DEPOSIT-TYPE CONTRACTS

		1	2	3
		Current Year	Prior Year	Prior Year Ended
		To Date	To Date	December 31
1.	Individual life	................236,701,827	................236,908,776	............... 485,454,605
2.	Group life
................... 7,101,665	................. 15,462,413	................. 16,492,830
3.	Individual annuities	............ 7,258,035,813	............ 5,697,599,536	.......... 11,754,837,589

4.	Group annuities	................178,343,597	................194,942,134	................362,530,968
5.	Accident & health	................. 11,545,482	................. 12,786,197	................. 26,015,673
6.	Fraternal	.................................0	.................................0	.................................0
7.	Other lines of business	.................................0	.................................0	.................................0
8.	Subtotal (Lines 1 through 7)	............ 7,691,728,384	............ 6,157,699,056	.......... 12,645,331,665
9.	Deposit-type contracts	................715,941,439	............... 954,989,959	............ 1,071,242,693
10.	Total (Lines 8 and 9)	8,407,669,823	7,112,689,015	13,716,574,358

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NOTES TO FINANCIAL STATEMENTS

1. Summary of Significant Accounting Policies and Going Concern

Accounting Practices
The financial statements of Jackson National Life Insurance Company ("Jackson" or the "Company") are presented on the basis of accounting practices prescribed or permitted by the Michigan Department of Insurance and Financial Services.
The Department of Insurance and Financial Services recognizes statutory accounting practices prescribed or permitted by the state of Michigan for determining and reporting the financial condition and results of operations of an insurance company, and for determining its solvency under Michigan Insurance Law. The Department of Insurance and Financial Services has adopted the National Association of Insurance Commissioners' ("NAIC") Accounting Practices and Procedures Manual ("NAIC SAP") to the extent that the accounting practices, procedures, and reporting standards are not modified by the Michigan Insurance Code. The state of Michigan has adopted certain prescribed accounting practices that differ from those defined in NAIC SAP. Specifically, the value of the book of business arising from the acquisition of a subsidiary or through reinsurance may be recognized as an admitted asset if certain criteria are met. In NAIC SAP, goodwill may be admitted in amounts not to exceed 10% of an insurer's capital and surplus, as adjusted, and is eliminated in the event of a merger. The commissioner of insurance has the right to permit other specific practices that deviate from prescribed practices.
The Valuation of Life Insurance Policies Model Regulation ("Model 830", also known as Regulation XXX), was effective for NAIC SAP in 2000. The state of Michigan did not permit Model 830 for reserve calculations until January 1, 2002. Thus, reserves for life business issued in calendar years 2000-2001 are not valued according to Model 830 and NAIC SAP, but rather, are valued under the prior method of the Standard Valuation Law, referred to as the 'unitary' method.
Actuarial Guideline XXXV ("Actuarial Guideline 35" or the "Guideline") was adopted by the NAIC in December 1998. The purpose of Actuarial Guideline 35 is to interpret the standards for the valuation of statutory reserves for fixed index annuities. NAIC SAP requires application of Actuarial Guideline 35 for all fixed index annuities issued after December 31, 2000. Michigan law prescribes the valuation of fixed index annuities without consideration of the Guideline. As a result, the Guideline is not reflected in the Company's accounts as of June 30, 2024 and December 31, 2023.
A reconciliation of the Company's net income and capital and surplus between NAIC SAP and practices prescribed or permitted by the state of Michigan is shown below:

			F/S		F/S
	SSAP #		Page		Line #	6/30/2024			12/31/2023
Net income
Jackson National Life Insurance Company, Michigan basis				$	(333,677,271)	$	(121,694,033)
Michigan Prescribed Practices that are an increase/(decrease) from NAIC SAP:
Valuation of Life Insurance Policies Model Regulation (XXX)
Decrease in aggregate reserves for life and accident and health	51	4	19			(364,639)			(388,310)
policies and contracts
Actuarial Guideline XXXV
Increase/(decrease) in aggregate reserves for life and accident	51	4	19			10,610,226			11,123,782
and health policies and contracts
Prescribed practices adjustment								10,245,587		10,735,472
Tax effect of prescribed practice differences	51,68	4	32			-			-
NAIC SAP				$	(343,922,858)	$	(132,429,505)
Capital and Surplus

Jackson National Life Insurance Company, Michigan basis				$	4,065,508,834	$	4,652,621,647
Michigan Prescribed Practices that are an increase/(decrease) from NAIC SAP:
Valuation of Life Insurance Policies Model Regulation (XXX):
Reserve, Michigan basis	51	3	1			(5,923,185)			(6,078,237)
Reserve, NAIC SAP	51	3	1			(15,449,792)			(15,969,483)
Model Regulation (XXX) adjustment								9,526,607		9,891,246
Actuarial Guideline XXXV:
Reserve, Michigan basis	51	3	1			(494,557,381)			(437,884,655)
Reserve, NAIC SAP	51	3	1			(542,517,382)			(475,234,430)
Actuarial Guideline XXXV adjustment								47,960,001		37,349,775
Tax effect of prescribed practice differences								(1,049,223)		(2,586,061)
Net impact of prescribed practices								56,437,385		44,654,960
NAIC SAP				$	4,009,071,449	$	4,607,966,687

Significant changes have not occurred since 12/31/2023 that warrant disclosure in Note 1, item B.

Ｗ

NOTES TO FINANCIAL STATEMENTS

Accounting Policy
1. Bonds not backed by other loans are stated at amortized cost except those with an NAIC rating of "6," which are stated at the lower of amortized cost or fair value. Acquisition premiums and discounts are amortized into investment income through call or maturity dates using the interest method. The Company did not have SVO- Identified investments reported at a different measurement method from prior periods.

Loan-backedand structured securities, hereafter collectively referred to as "loan-backed securities", are stated at amortized cost except those with an NAIC carry rating of "6," which are carried at the lower of amortized cost or fair value. The retrospective adjustment method is used to value loan-backed securities where the collection of all contractual cash flows is probable. For loan-backed securities where the collection of all contractual cash flows is not probable, the Company:
- Recognizes the accretable yield over the life of the loan-backed security as determined at the acquisition or transaction date,
- Continues to estimate cash flows expected to be collected at least quarterly, and
- Recognizes an other-than-temporary impairment loss if the loan-backed security is impaired (i.e., the fair value is less than the amortized cost basis) and if the Company does not expect to recover the entire amortized cost basis when compared to the present value of cash flows expected to be collected.

Investments are reduced to estimated fair value (discounted cash flows for loan-backed securities) for declines in value that are determined to be other-than-temporary. In determining whether an other-than-temporary impairment has occurred, the Company considers a security's forecasted cash flows as well as the severity and duration of depressed fair values.

If the Company intends to sell an impaired loan-backed security or does not have the intent and ability to retain the impaired loan-backed security for a period of time sufficient to recover the amortized cost basis, an other-than- temporary impairment has occurred. In these situations, the other-than-temporary impairment loss recognized is the difference between the amortized cost basis and fair value. For loan-backed securities, the credit portion of the recognized loss is recorded to the asset valuation reserve ("AVR") and the non-credit portion is recorded to the interest maintenance reserve ("IMR"). If the Company does not expect to recover the entire amortized cost basis when compared to the present value of cash flows expected to be collected, it cannot assert that it has the ability to recover the loan-backed security's amortized cost basis even though it has no intent to sell and has the intent and ability to retain the loan-backed security. Therefore, an other-than-temporary impairment has occurred and a realized loss is recognized for the non-interest related decline, which is calculated as the difference between the loan-backed security's amortized cost basis and the present value of cash flows expected to be collected.

For situations where an other-than-temporary impairment is recognized, the previous amortized cost basis less the other-than temporary impairment recognized as a realized loss becomes the new amortized cost basis of the loan- backed security. The new amortized cost basis is not adjusted for subsequent recoveries in fair value. Therefore, the prospective adjustment method is used for periods subsequent to other-than-temporary impairment loss recognition.

1. Going Concern
  There is not substantial doubt about the Company's ability to continue as a going concern.
Accounting Changes and Corrections of Errors
Significant changes have not occurred since 12/31/2023 that warrant disclosure in Note 2.
Business Combinations and Goodwill
Significant changes have not occurred since 12/31/2023 that warrant disclosure in Note 3.
Discontinued Operations
Significant changes have not occurred since 12/31/2023 that warrant disclosure in Note 4.
Investments
1. Loan Backed and Structured Securities
2. 1. Principal prepayment assumptions for loan-backed and structured securities are obtained from broker-dealers, independent providers of broker-dealer estimates, or internal models.
  2. There were no loan-backed and structured securities with a recognized other-than-temporary impairment where the Company has either the intent to sell the securities or lacks the ability or intent to retain the securities as of the statement date.

ＷＮＱ

NOTES TO FINANCIAL STATEMENTS

The following table details loan-backed and structured securities with a recognized other-than-temporary impairment recorded in 2024:

1	2	3	4	5	6	7
	Book/Adj Carrying		Recognized	Amortized cost		Financial
	Value Amortized cost	Projected Cash	other-than-	after other-than-		Statement
CUSIP	before current period	temporary	temporary	Fair Value	Reporting
OTTI	Flows	impairment	impairment	Period
36185MEV0	2,669,278	2,577,036	92,242	2,577,036	2,577,036	Q1-2024
12669FZZ9	1,200,690	1,174,239	26,451	1,174,239	1,174,239	Q1-2024
12669FZL0	1,328,041	1,326,507	1,534	1,326,507	1,326,507	Q1-2024
466247ER0	45,275	43,585	1,690	43,585	43,585	Q1-2024
91863*AB1	13,435,312	12,596,669	838,643	12,596,669	12,596,669	Q1-2024
073914WC3	1,347	1,299	48	1,299	1,299	Q2-2024
12669FVZ3	157,968	155,695	2,273	155,695	155,695	Q2-2024
12669FZL0	1,304,819	1,298,188	6,630	1,298,188	1,298,188	Q2-2024
12669FZZ9	1,299,868	1,160,887	138,981	1,160,887	1,160,887	Q2-2024
31359VHC0	56,232	55,291	941	55,291	55,291	Q2-2024
466247ER0	44,053	43,061	993	43,061	43,061	Q2-2024
91863*AB1	17,397,922	10,007,747	7,390,175	10,007,747	10,007,747	Q2-2024

Total			8,500,601

The following table summarizes loan-backed and structured securities in an unrealized loss position as of June 30, 2024:

		Total		<12 Months		12+ Months
Fair Value	$	3,865,732,198	$	627,442,826	$	3,238,289,372
Unrealized Loss	$	386,658,014	$	39,322,185	$	347,335,829

The carrying value and fair value of all loan-backed and structured securities, regardless of whether the security is in an unrealized loss position, was $5,330,073,328 and $4,993,237,664, respectively.

1. The Company periodically reviews its debt securities and equities on a case-by-case basis to determine if any decline in fair value to below amortized cost is other-than-temporary. Factors considered in determining whether a decline is other-than-temporary include the length of time a security has been in an unrealized loss position, reasons for the decline in value, expectations for the amount and timing of a recovery in value, and the Company's intent and ability not to sell a security prior to a recovery in fair value.
  Securities the Company determines are underperforming or potential problem securities are subject to regular review. To facilitate this review, securities with significant declines in value or where other objective criteria evidencing credit deterioration have been met, are included on a watch list. Among the criteria for securities to be included on a watch list are: credit deterioration that has led to a significant decline in fair value of the security; a significant covenant related to the security has been breached; or an issuer has filed or indicated a possibility of filing for bankruptcy, has missed or announced it intends to miss a scheduled interest or principal payment, or has experienced a specific material adverse change that may impair its creditworthiness.
  In performing these reviews, the Company considers the relevant facts and circumstances relating to each investment and exercises considerable judgment in determining whether a security is other-than-temporarily impaired. Assessment factors include judgments about an obligor's current and projected financial position, an issuer's current and projected ability to service and repay its debt obligations, the existence of, and realizable value of, any collateral supporting the obligations, and the macro-economic and micro-economic outlooks for specific industries and issuers. This assessment may also involve assumptions regarding underlying collateral such as prepayment rates, default and recovery rates, and third-party servicing capabilities.
Dollar Repurchase Agreements and/or Securities Lending Transactions
1. b. The aggregate fair value of all securities acquired from the sale, trade, or use of the accepted collateral (reinvested collateral) was $10,258,432 and $13,049,799 as of June 30, 2024 and December 31, 2023, respectively.
Repurchase Agreements Transactions Accounted for as Secured Borrowing - Cash Taker
1. The Company routinely enters into repurchase agreements whereby the Company agrees to sell and repurchase securities. Repurchase agreements are accounted for as collateralized borrowings. Collateral securities sold under such agreements continue to be included in invested assets. Cash proceeds received from the sale of securities subject to repurchase agreements are included in liabilities.
  During 2024, Jackson executed certain paired repurchase and reverse repurchase transactions ("Collateral Upgrade" transactions) totaling $1.5 billion pursuant to master repurchase agreements with participating bank counterparties. Under these collateral upgrade transactions, the Company lends securities (e.g., corporate debt securities or other securities agreed upon between the parties) to bank counterparties in exchange for U.S. Treasury securities to provide as collateral as part of our hedging program. The paired repurchase and reverse repurchase transactions are settled on a net basis in accordance with master netting agreements. As a result, there was no cash exchanged at

ＷＮＲ

Attachments

Disclaimer

Jackson Financial Inc. published this content on 13 August 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 13 August 2024 21:42:13 UTC.