Jackson Financial Q3 Adjusted EPS Rises 22.6% to $7.55 on Record Annuity Sales; Adds $1 Billion to Buyback
Jackson Financial's third-quarter adjusted operating earnings rose 22.6% to $7.55 per diluted share on record retail annuity sales, and the annuity provider's board approved a $1 billion increase to its share repurchase authorization.
Adjusted operating earnings climbed 19.4% to $517 million from $433 million, or $6.16 per share, a year earlier, according to the earnings release Jackson filed with an 8-K on Tuesday. Excluding notable items, adjusted operating EPS rose 28.3% to $7.67 from $5.98.
Net income attributable to common shareholders jumped to $847 million, or $12.37 per diluted share, from $65 million, or $0.92. Total revenues rose 8.9% to $1.542 billion.
Record annuity sales
Retail annuity sales hit a record $6.5 billion, up 22% from $5.4 billion, the company said. Registered index-linked annuity sales set their own record at $3.0 billion, up 44% from $2.1 billion, while fixed and fixed index annuity sales rose 79.3% to $796 million from $444 million. Traditional variable annuity sales were $2.8 billion, versus $2.9 billion. Spread-based products made up 58% of retail annuity sales, according to the investor presentation the company furnished in a separate 8-K the same day.
Pretax adjusted operating earnings in the Retail Annuities segment rose 29.1% to $638 million from $494 million. Institutional earned $23 million, down from $31 million, and Corporate and Other posted a $46 million loss.
CEO and President Don Cummings highlighted the start of the AARP Annuity Program from Jackson, under which the company is the exclusive annuity provider for AARP members. According to the presentation, the program launched in November 2026 with four annuities in 10 states, and national availability is targeted for the first half of 2027.
Asset manager PPM America's assets under management rose 13.0% to $101.8 billion from $90.1 billion.
Capital and targets
Jackson returned $291 million to common shareholders in the quarter, up 39% from a year earlier, through $230 million of share repurchases and $61 million of dividends. Year to date, it has returned $838 million.
Free capital generation was $281 million in the quarter and free cash flow was $275 million. Jackson National Life's risk-based capital ratio was an estimated 524%, the company said, above the 425% level it calibrates to. The holding company's cash and highly liquid securities remained well above the company's $325 million minimum liquidity buffer.
The presentation said Jackson is on track to deliver its 2026 financial targets, including $900 million to $1.1 billion of capital return to common shareholders and free capital generation at or above $1.2 billion. It generated $856 million of free capital in the first nine months.
Common shareholders' equity was $7.9 billion, or $117.72 per share, versus $9.4 billion, or $138.17, at the end of 2025. Adjusted book value per share rose 5.6% to $164.47 from $155.78.
The company will discuss results on a conference call Wednesday, Nov. 4, at 10 a.m. ET.
By the numbers
- Adjusted operating EPS: $7.55, up 22.6%
- Net income per share: $12.37, versus $0.92
- Retail annuity sales: $6.5 billion, a record
- RILA sales: $3.0 billion, a record
- Capital returned: $291 million
- Buyback authorization: increased by $1 billion
Sources
- Jackson Financial Form 8-K with third-quarter 2026 earnings release, filed Nov. 3, 2026 (accession 0001822993-26-000170)
- Jackson Financial Form 8-K furnishing third-quarter 2026 investor presentation, filed Nov. 3, 2026 (accession 0001104659-26-122015)
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