Jackson Increases IFRS Pretax Operating Income 26.7% To $701.0 Million

Jackson National Life Insurance Company ^® (Jackson ^®) generated record IFRS pretax operating income ¹ of $701.0 million during the first half of 2012, an increase of 26.7 percent over the first half of 2011, due primarily to the success of its variable annuity product line and the resulting higher fee income. The company’s total first-half sales and deposits ² were $12.6 billion, up 3.8 percent over the same period of the prior year.

“Jackson’s results in the first half clearly reflect our disciplined approach to the market and focus on value over volume,” said Mike Wells, Jackson’s president and chief executive officer. "Jackson remains committed to following its Long-Term Smart ^® strategy to achieve sustainable and profitable growth."

Jackson, an indirect wholly owned subsidiary of the United Kingdom’s Prudential plc (NYSE: PUK), recorded IFRS net income of $378.5 million during the first half of 2012, compared to a six-month record of $392.2 million ³ during the first half of 2011. The decrease was due primarily to less favorable net hedge results during the period due to the rapid rise in equity markets, combined with accounting that does not fully reflect economic movements, as well as lower net realized gains, as compared to the first half of 2011.

As of June 30, 2012, Jackson had $4.1 billion of regulatory adjusted capital, more than eight times the regulatory requirements ⁴, after remitting a dividend of $400.0 million to its parent company. Jackson finished the first half of 2012 with $129.9 billion in total IFRS assets, ⁵ up from $118.8 billion ³ at December 31, 2011.

“Jackson’s pretax operating income benefited from fee income that was 19.6 percent higher than the first half of 2011 resulting in a new high water mark for a first half,” said Chad Myers, Jackson’s executive vice president and chief financial officer. “These operating results combined with strong capital formation show that Jackson’s approach to the VA market is sound and continues to lay the foundation for long-term success.”

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