Curian Capital ® LLC (Curian), Jackson’s retail asset management subsidiary that provides innovative fee-based managed accounts and investment products, continued to generate positive net flows during the nine-month period, which increased assets under management to $10.4 billion as of September 30, 2012, up from $7.3 billion as of December 31, 2011.
"In today’s challenging economic environment, advisors are struggling to find solutions to growing and managing their clients’ assets, in order to provide an income that will last throughout their clients’ retirement years,” said Clifford Jack, executive vice president and head of retail for Jackson. "Jackson’s success is driven by our ability to construct sophisticated financial products that address problems the average retail consumer cannot solve on his or her own.”
As previously announced, Jackson has undertaken a number of initiatives to moderate the growth of its sales of variable annuities with guarantees for the remainder of the year. These actions will help to manage through a period of rapid change in competitor products while avoiding the risk of concentration to any one specific year.
On September 4, 2012, Jackson completed the acquisition of SRLC from Swiss Re for an initial consideration of $663.3 million. SRLC was the U.S. holding company of Reassure America Life Insurance Company (REALIC). The acquisition helps diversify Jackson’s sources of earnings by increasing the amount of income generated from underwriting activities. Jackson has begun integrating REALIC’s book of business and believes the transaction will be immediately accretive to its pre-tax earnings while having a modest impact on its statutory risk based capital ratio.Following the SRLC acquisition announcement, all four primary rating agencies—A.M. Best, Standard & Poor’s, Fitch Ratings and Moody’s Investors Service, Inc.—affirmed Jackson’s financial strength ratings. Jackson has maintained the same financial strength ratings for more than nine years. As of October 31, 2012, Jackson had the following ratings: 3
- A+ (superior) —A.M. Best financial strength rating, the second-highest of 16 rating categories;
- AA (very strong) —Standard & Poor's insurer financial strength rating, the third-highest of 21 rating categories;
- AA (very strong) —Fitch Ratings insurer financial strength rating, the third-highest of 19 rating categories;
- A1 (good) —Moody's Investors Service, Inc. insurance financial strength rating, the fifth-highest of 21 rating categories.
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