What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2022-11-10 compared with 2022-08-10 · 395 added, 324 removed, 1981 unchanged (27% of the section changed)

3 unchanged sentences

(in millions, except per share data)

June 30, December 31,

Debt Securities, available-for-sale, net of allowance for credit losses of $ 43 and $ 9 at June 30, 2022 and December 31, 2021, respectively (amortized cost:

September 30, December 31,

Assets (Unaudited)

Debt Securities, available-for-sale, net of allowance for credit losses of $ 31 and $ 9 at September 30, 2022 and December 31, 2021, respectively (amortized cost:

2022 $ 48,868 ;

4 unchanged sentences

Equity securities, at fair value 234 279

Mortgage loans, net of allowance for credit losses of $ 80 and $ 94 at June 30, 2022 and December 31, 2021, respectively

Mortgage loans, net of allowance for credit losses of $ 79 and $ 94 at September 30, 2022 and December 31, 2021, respectively

11,223 11,482

Mortgage loans, at fair value under fair value option 508 —

Policy loans (including $ 3,485 and $ 3,467 at fair value under the fair value option at June 30, 2022 and December 31, 2021, respectively)

Policy loans (including $ 3,487 and $ 3,467 at fair value under the fair value option at September 30, 2022 and December 31, 2021, respectively)

Freestanding derivative instruments 1,950 1,417

4 unchanged sentences

Deferred acquisition costs 12,797 14,249

Reinsurance recoverable, net of allowance for credit losses of $ 11 and $ 12 at June 30, 2022 and December 31, 2021, respectively

Reinsurance recoverable, net of allowance for credit losses of $ 10 and $ 12 at September 30, 2022 and December 31, 2021, respectively

30,796 33,126

6 unchanged sentences

Other contract holder funds 58,174 58,726

Funds withheld payable under reinsurance treaties (including $ 3,649 and $ 3,639 at fair value under the fair value option at June 30, 2022 and December 31, 2021, respectively)

Funds withheld payable under reinsurance treaties (including $ 3,646 and $ 3,639 at fair value under the fair value option at September 30, 2022 and December 31, 2021, respectively)

23,900 29,007

3 unchanged sentences

Freestanding derivative instruments 2,225 41

Notes issued by consolidated variable interest entities, at fair value under fair value option (Note 4)

Other liabilities 2,352 2,540

2 unchanged sentences

Commitments, Contingencies, and Guarantees (Note 14)

Common stock, (i) Class A Common Stock 900,000,000 shares authorized, $ 0.01 par value per share and 84,864,727 and 88,046,833 shares issued and outstanding at June 30, 2022 and December 31, 2021, respectively and (ii) No authorized Class B Common Stock at June 30, 2022 and 100,000,000 shares authorized, $ 0.01 par value per share and 638,861 shares issued and outstanding at December 31, 2021 (See Note 18)

Common stock, (i) Class A Common Stock 900,000,000 shares authorized, $ 0.01 par value per share and 83,666,942 and 88,046,833 shares issued and outstanding at September 30, 2022 and December 31, 2021, respectively and (ii) No authorized Class B Common Stock at September 30, 2022 and 100,000,000 shares authorized, $ 0.01 par value per share and 638,861 shares issued and outstanding at December 31, 2021 (See Note 18)

Additional paid-in capital 6,036 6,051

Treasury stock, at cost;

9,608,399 and 5,778,649 shares at June 30, 2022 and December 31, 2021, respectively

10,807,076 and 5,778,649 shares at September 30, 2022 and December 31, 2021, respectively

( 410 ) ( 211 )

Accumulated other comprehensive income (loss), net of tax expense (benefit) of $( 907 ) and $ 194 at June 30, 2022 and December 31, 2021, respectively

Accumulated other comprehensive income (loss), net of tax expense (benefit) of $( 1,235 ) and $ 194 at September 30, 2022 and December 31, 2021, respectively

( 5,718 ) 1,744

8 unchanged sentences

(Unaudited, in millions, except per share data)

Three Months Ended June 30, Six Months Ended June 30,

Three Months Ended September 30, Nine Months Ended September 30,

2022 2021 2022 2021

7 unchanged sentences

Death, other policy benefits and change in policy reserves, net of deferrals 586 405 2,090 933

Interest credited on other contract holder funds, net of deferrals 217 217 423 440

Interest credited on other contract holder funds, net of deferrals and amortization 224 209 628 630

Interest expense 29 6 73 19

Operating costs and other expenses, net of deferrals 592 699 1,801 2,090

Amortization of deferred acquisition and sales inducement costs 1,198 ( 264 ) 1,713 548

Amortization of deferred acquisition costs 564 4 2,276 551

Total benefits and expenses 1,995 1,323 6,868 4,223

12 unchanged sentences

(Unaudited, in millions)

Three Months Ended June 30, Six Months Ended June 30,

Three Months Ended September 30, Nine Months Ended September 30,

2022 2021 2022 2021

2 unchanged sentences

Securities with no credit impairment net of tax expense (benefit) of:

$( 363 ) and $ 260 , for the three months ended June 30, 2022 and 2021, respectively, and $( 1,108 ) and $( 397 ), for the six months ended June 30, 2022 and 2021, respectively

$( 323 ) and $( 95 ), for the three months ended September 30, 2022 and 2021, respectively, and $( 1,431 ) and $( 492 ), for the nine months ended September 30, 2022 and 2021, respectively

( 1,978 ) ( 345 ) ( 7,466 ) ( 1,778 )

Securities with credit impairment, net of tax expense (benefit) of:

$ 2 and nil for the three months ended June 30, 2022 and 2021, respectively, and $ 6 and $ 1 , for the six months ended June 30, 2022 and 2021, respectively

$( 5 ) and nil for the three months ended September 30, 2022 and 2021, respectively, and $ 1 and $ 1 , for the nine months ended September 30, 2022 and 2021, respectively

Total other comprehensive income (loss) ( 1,996 ) ( 345 ) ( 7,462 ) ( 1,776 )

10 unchanged sentences

Stock Capital at Cost In Trust Reserve Income Earnings Equity Interests Equity

Balances as of March 31, 2022 $ 1 $ 6,081 $ ( 351 ) $ — $ — $ ( 939 ) $ 4,782 $ 9,574 $ 715 $ 10,289

Balances as of June 30, 2022 $ 1 $ 6,020 $ ( 371 ) $ — $ — $ ( 3,722 ) $ 7,635 $ 9,563 $ 747 $ 10,310

Net income (loss) — — — — — — 1,479 1,479 ( 11 ) 1,468

1 unchanged sentence

Change in equity of noncontrolling interests — — — — — — — — ( 7 ) ( 7 )

Treasury stock acquired in connection with share repurchases — — ( 100 ) — — — — ( 100 ) — ( 100 )

Dividends on common stock — — — — — — ( 49 ) ( 49 ) — ( 49 )

Purchase of treasury stock — — ( 39 ) — — — — ( 39 ) — ( 39 )

Share based compensation — 16 — — — — — 16 — 16

Balances as of June 30, 2022 $ 1 $ 6,020 $ ( 371 ) $ — $ — $ ( 3,722 ) $ 7,635 $ 9,563 $ 747 $ 10,310

Balances as of September 30, 2022 $ 1 $ 6,036 $ ( 410 ) $ — $ — $ ( 5,718 ) $ 9,065 $ 8,974 $ 729 $ 9,703

Additional Treasury Shares Equity Other Total Non-

1 unchanged sentence

Stock Capital at Cost In Trust Reserve Income Earnings Equity Interests Equity

Balances as of March 31, 2021 $ 1 $ 5,927 $ — $ ( 4 ) $ 10 $ 1,443 $ 2,608 $ 9,985 $ 585 $ 10,570

Balances as of June 30, 2021 $ 1 $ 5,927 $ — $ ( 4 ) $ 9 $ 2,390 $ 2,068 $ 10,391 $ 599 $ 10,990

Net income (loss) — — — — — — 206 206 62 268

1 unchanged sentence

Change in equity of noncontrolling interests — — — — — — — — ( 63 ) ( 63 )

Shares sold in connection with demerger — 1 — 4 — — — 5 — 5

Reserve for equity compensation plans — — — — $ 1 — — 1 — 1

Balances as of June 30, 2021 $ 1 $ 5,927 $ — $ ( 4 ) $ 9 $ 2,391 $ 2,068 $ 10,392 $ 599 $ 10,991

Balances as of September 30, 2021 $ 1 $ 5,928 $ — $ — $ 10 $ 2,045 $ 2,274 $ 10,258 $ 598 $ 10,856

Additional Treasury Shares Equity Other Total Non-

5 unchanged sentences

Change in equity of noncontrolling interests — — — — — — — — ( 2 ) ( 2 )

Treasury stock acquired in connection with share repurchases — — ( 240 ) — — — — ( 240 ) — ( 240 )

Dividends on common stock — — — — — — ( 151 ) ( 151 ) — ( 151 )

Purchase of treasury stock — — ( 279 ) — — — — ( 279 ) — ( 279 )

Share based compensation — ( 15 ) 80 — — — — 65 — 65

Balances as of June 30, 2022 $ 1 $ 6,020 $ ( 371 ) $ — $ — $ ( 3,722 ) $ 7,635 $ 9,563 $ 747 $ 10,310

Balances as of September 30, 2022 $ 1 $ 6,036 $ ( 410 ) $ — $ — $ ( 5,718 ) $ 9,065 $ 8,974 $ 729 $ 9,703

Additional Treasury Shares Equity Other Total Non-

5 unchanged sentences

Change in equity of noncontrolling interests — — — — — — — — ( 82 ) ( 82 )

Shares sold in connection with demerger — 1 — 4 — — — 5 — 5

Reserve for equity compensation plans — — — — 2 — — 2 — 2

Balances as of June 30, 2021 $ 1 $ 5,927 $ — $ ( 4 ) $ 9 $ 2,391 $ 2,068 $ 10,392 $ 599 $ 10,991

Balances as of September 30, 2021 $ 1 $ 5,928 $ — $ — $ 10 $ 2,045 $ 2,274 $ 10,258 $ 598 $ 10,856

See Notes to Condensed Consolidated Financial Statements.

2 unchanged sentences

(Unaudited, in millions)

Six Months Ended June 30,

Nine Months Ended September 30,

Cash flows from operating activities:

10 unchanged sentences

Accrued investment income ( 6 ) 47

Deferred acquisition costs and sales inducements 1,364 148

Deferred acquisition costs 1,783 ( 43 )

Funds withheld, net of reinsurance ( 204 ) ( 609 )

17 unchanged sentences

(Unaudited, in millions)

Six Months Ended June 30,

Nine Months Ended September 30,

Cash flows from financing activities:

8 unchanged sentences

Debt issuance costs ( 7 ) —

Disposition of shares held in trust at cost, net — 5

Dividends on common stock ( 151 ) —

21 unchanged sentences

(“Jackson Financial”) along with its subsidiaries (collectively, the “Company,” which also may be referred to as “we,” “our” or “us”), is a financial services company focused on helping Americans grow and protect their retirement savings and income to enable them to pursue financial freedom for life.

Jackson Financial, domiciled in the United States (“U.S.”), was a majority-owned subsidiary of Prudential plc (“Prudential”), London, England and was the holding company for Prudential’s U.S.

As described below under "Other," the Company's demerger from Prudential was completed on September 13, 2021 ("Demerger"), and the Company is no longer a majority-owned subsidiary of Prudential.

Jackson Financial’s primary life insurance subsidiary, Jackson National Life Insurance Company and its insurance subsidiaries (“Jackson”), is licensed to sell group and individual annuity products (including immediate, registered index-linked, deferred fixed, fixed index and variable annuities), and individual life insurance products, including variable universal life, in all 50 states and the District of Columbia.

Jackson Financial, domiciled in the state of Delaware in the United States (“U.S.”), was a majority-owned subsidiary of Prudential plc (“Prudential”), London, England, and was the holding company for Prudential’s U.S.

As described below under "Other," the Company's demerger from Prudential was completed on September 13, 2021 ("Demerger"), and the Company is a stand-alone U.S.

public company.

Jackson Financial’s primary life insurance subsidiary, Jackson National Life Insurance Company and its insurance subsidiaries (collectively, “Jackson”), is licensed to sell group and individual annuity products (including immediate, registered index-linked, deferred fixed, fixed index and variable annuities), and individual life insurance products, including variable universal life, in all 50 states and the District of Columbia.

Jackson also participates in the institutional products market through the issuance of guaranteed investment contracts (“GICs”), funding agreements and medium-term note funding agreements.

In addition to Jackson, Jackson Financial’s primary operating subsidiaries are as follows:

Jackson Financial’s primary operating subsidiaries, in addition to Jackson, are as follows:

• PPM America, Inc.

2 unchanged sentences

• Brooke Life Insurance Company (“Brooke Life”), Jackson’s direct parent, is a life insurance company licensed to sell life insurance and annuity products in the state of Michigan.

Other subsidiaries, which are wholly owned by Jackson, consist of the following:

Other wholly-owned subsidiaries of Jackson are as follows:

• Life insurers:

2 unchanged sentences

Squire Reassurance Company II, Inc.

(“Squire Re II”) and VFL International Life Company SPC, LTD;

• Broker-dealer, investment management and investment advisor subsidiaries:

(“Squire Re II”);

and VFL International Life Company SPC, LTD;

• Registered broker-dealer:

Jackson National Life Distributors, LLC ("JNLD");

Jackson National Asset Management, LLC ("JNAM");

• Registered investment adviser:

Jackson National Asset Management, LLC ("JNAM"), which manages the life insurance companies' separate account funds underlying the variable annuities products, which are sub-advised.

JNAM manages and oversees those sub-advisers;

• Service provider:

PGDS (US One) LLC (“PGDS”), which provides certain services to the Company and certain former affiliates;

• Other insignificant wholly-owned subsidiaries.

The Condensed Consolidated Financial Statements also include other insignificant partnerships, limited liability companies (“LLCs”) and other variable interest entities (“VIEs”) in which the Company is deemed the primary beneficiary.

On August 6, 2021, the registration statement on Form 10 of the Company's Class A Common Stock filed with the U.S.

Securities and Exchange Commission (the "SEC"), became effective under the Securities Exchange Act of 1934, as amended.

The Company's Condensed Consolidated Financial Statements also include other insignificant partnerships, limited liability companies (“LLCs”) and other variable interest entities (“VIEs”) in which the Company is deemed the primary beneficiary.

On August 6, 2021, the Company's Class A Common Stock was registered on a Form 10 registration statement filed with the U.S.

Securities and Exchange Commission (the "SEC") and became effective under the Securities Exchange Act of 1934, as amended.

We refer to that effective Form 10 registration as the "Form 10." The Demerger transaction described in the Form 10 was consummated on September 13, 2021.

As of June 30, 2022, Prudential retained a 14.3 % remaining interest in the Company.

Prudential sold additional shares of the Company’s Class A Common Stock during the third quarter of 2022 and as of August 5, 2022 Prudential retained a 9.0 % remaining interest in the Company.

As of September 30, 2022, Prudential retained a 9.1 % remaining interest in the Company.

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 1.

Business and Basis of Presentation

On September 9, 2021, the Company effected a 104,960.3836276 -for-1 stock split of its Class A Common Stock and Class B Common Stock by way of a reclassification of its Class A Common Stock and Class B Common Stock (the “stock split”).

1 unchanged sentence

All share and earnings per share information presented herein have been retroactively adjusted to reflect the stock split.

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 1.

Business and Basis of Presentation

On June 18, 2020, the Company’s subsidiary, Jackson, announced that it had entered into a funds withheld coinsurance agreement with Athene Life Re Ltd.

(“Athene”) effective June 1, 2020 to reinsure on 100 % quota share basis, a block of Jackson’s in-force fixed and fixed-index annuity product liabilities in exchange for a $ 1.2 billion ceding commission ("Athene Reinsurance Agreement").

(“Athene”) effective June 1, 2020, to reinsure on a 100 % quota share basis, a block of Jackson’s in-force fixed and fixed-index annuity product liabilities in exchange for a $ 1.2 billion ceding commission (the "Athene Reinsurance Agreement").

In addition, we entered into an investment agreement with Athene Life Re Ltd., pursuant to which Athene invested $ 500 million of capital in return for a 9.9 % voting interest corresponding to a 11.1 % economic interest in the Company.

1 unchanged sentence

In August 2020, the Company made a $ 500 million capital contribution to its subsidiary, Jackson.

As of June 30, 2022, Athene retained a 8.9 % voting interest and 8.9 % economic interest.

We continue to closely monitor developments related to the COVID-19 pandemic.

The COVID-19 pandemic has caused significant economic and financial turmoil both in the United States and around the world.

While there has been a gradual resumption of activity, COVID-19 and its variants continue to affect activity, and those effects could continue and could worsen in the future.

As of September 30, 2022, Athene retained a 9.0 % voting interest and 9.0 % economic interest.

We continue to monitor developments related to the COVID-19 pandemic.

The COVID-19 pandemic caused significant economic and financial turmoil in the United States and around the world.

There has been a steady resumption of activity during 2022;

however, at this time it is not possible to estimate the long-term effectiveness of any therapeutic treatments and vaccines for COVID-19, or their efficacy with respect to current or future variants or mutations of COVID-19, or the longer-term effects that the COVID-19 pandemic could have on our business.

The extent to which the COVID-19 pandemic impacts our business, results of operations, financial condition and cash flows will depend on future developments that are highly uncertain and cannot be predicted.

The Company implemented business continuity plans that were already in place to ensure the availability of services for our customers, work at home capabilities for our employees, where appropriate, and other ongoing risk management activities.

The Company has had employees, as needed or voluntarily, in our offices during this time, as permitted by local and state restrictions.

The Company rolled out a broader “return to office plan” for all employees, with many associates in 2022 now working on an “office-centric” hybrid schedule between in-office and remote working arrangements.

The Company implemented business continuity plans that already were in place to ensure the availability of services for our customers, work at home capabilities for our employees, where appropriate, and other ongoing risk management activities.

The Company had employees, as needed or voluntarily, in our offices during this time, as permitted by local and state restrictions.

The Company rolled out a broader “return to office plan” for all employees, and since September 2022, required some associates to return to the office five days a week.

Employees below director level remain on an “office-centric” hybrid schedule between in-office and remote working arrangements.

Basis of Presentation

4 unchanged sentences

The condensed consolidated financial information as of December 31, 2021, included herein, has been derived from the audited Consolidated Financial Statements in the 2021 Annual Report, although certain amounts have been reclassified to conform to the 2022 presentation.

Certain accounting policies, which significantly affect the determination of financial condition, results of operations and cash flows, are summarized in the Company’s Notes to Consolidated Financial Statements for the year ended December 31, 2021 in the Company’s 2021 Annual Report.

Certain accounting policies, which significantly affect the determination of financial condition, results of operations and cash flows, are summarized in the Notes to Consolidated Financial Statements in the Company’s 2021 Annual Report.

In the opinion of management, these financial statements include all normal recurring adjustments necessary for a fair presentation of the Company’s results.

Operating results for the three and six months ended June 30, 2022, are not necessarily indicative of the results that may be expected for the full year ending December 31, 2022.

Operating results for the three and nine months ended September 30, 2022, are not necessarily indicative of the results that may be expected for the full year ending December 31, 2022.

All material intercompany accounts and transactions have been eliminated in consolidation.

3 unchanged sentences

• Valuation of investments and derivative instruments, including fair values of securities deemed to be in an illiquid market and the determination of when an impairment is necessary;

• Assessments as to whether certain entities are variable interest entities, the existence of reconsideration events and the determination of which party, if any, should consolidate the entity;

• Assumptions impacting estimated future gross profits, including policyholder behavior, mortality rates, expenses, projected hedging costs, investment returns and policy crediting rates, used in the calculation of amortization of deferred acquisition costs;

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 1.

Business and Basis of Presentation

• Assessments as to whether certain entities are variable interest entities, the existence of reconsideration events and the determination of which party, if any, should consolidate the entity;

• Assumptions used in calculating policy reserves and liabilities, including policyholder behavior, mortality rates, expenses, investment returns and policy crediting rates;

8 unchanged sentences

Changes in estimates, including those resulting from continuing changes in the economic environment, will be reflected in the consolidated financial statements in the periods the estimates are changed.

Revision of Prior Period Financial Statements

The Company identified errors related to the classification of certain balances and amounts in the line items of the consolidated balance sheets and consolidated income statements.

These errors resulted in the revision of balances and amounts related to deferred sales inducement assets, liabilities for certain life-contingent annuities, sub-advisor fee expenses, and other operating expense items that impacted previously issued consolidated financial statements.

The impact of these errors to the current and the prior periods' consolidated financial statements were not considered to be material and had no impact on shareholders' equity or net income.

However, to improve the consistency and comparability of the financial statements, management revised the financial statements and related disclosures in this quarterly report.

See Note 20 to the Notes to Condensed Consolidated Financial Statements for details of the revisions.

New Accounting Standards

3 unchanged sentences

If certain criteria are met, an entity will not be required to remeasure or reassess contracts impacted by reference rate reform.

The practical expedient allowed by this standard was elected and will be applied prospectively by the Company as reference rate reform unfolds.

The practical expedient allowed by this standard was elected and is being applied prospectively by the Company as reference rate reform unfolds.

The contracts modified to date met the criteria for the practical expedient and therefore had no material impact on the Company’s consolidated financial statements.

3 unchanged sentences

2018-12 is effective for fiscal years beginning after December 15, 2022.

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 2.

New Accounting Standards

The amendments in ASU 2018-12 contain four significant changes:

8 unchanged sentences

These liabilities will be discounted using an upper-medium grade fixed income instrument yield which will be updated quarterly, with related changes in the liability recognized in OCI;

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 2.

New Accounting Standards

Enhanced disclosures:

12 unchanged sentences

• the removal of certain balances recorded in AOCI related to changes in unrealized appreciation (depreciation) on investments.

In March 2022, the FASB issued ASU 2022-01, “Derivatives and Hedging (Topic 815):

Fair Value Hedging – Portfolio Layer Method.” The new guidance allows multiple hedged layers to be designated for a single closed portfolio of financial assets or one or more beneficial interests secured by a portfolio of financial instruments.

If multiple hedged layers are designated, an entity is required to perform an analysis to support its expectation that the aggregate amount of the hedged layers is anticipated to be outstanding for the designated hedge periods.

The amendments in this update are effective for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years.

An entity may designate multiple hedged layers of a single closed portfolio solely on a prospective basis.

All entities are required to apply the amendments related to hedge basis adjustments under the portfolio layer method, except for those related to disclosures, on a modified retrospective basis by means of a cumulative-effect adjustment to the opening balance of retained earnings on the initial application date.

Early adoption is permitted.

The Company does not anticipate any impact when adopting the new guidance and does not plan to early adopt.

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 3.

11 unchanged sentences

The Company has three reportable segments consisting of Retail Annuities, Institutional Products, Closed Life and Annuity Block, plus its Corporate and Other segment.

These segments reflect the manner by which the Company’s chief operating decision maker views and manages the business.

These segments reflect how the Company’s chief operating decision maker views and manages the business.

The following is a brief description of the Company’s reportable segments.

14 unchanged sentences

Funding agreements are marketed to institutional investors, including corporate cash accounts and securities lending funds, as well as money market funds, and are issued to the FHLB in connection with its program.

The financial results of the Company’s institutional products business are primarily dependent on the Company’s ability to earn spreads on general account assets.

The financial results of the Company’s institutional products business are primarily dependent on the Company’s ability to earn a spread between earned investment rates on general account assets and the interest credited on GICs and funding agreements.

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 3.

12 unchanged sentences

The Company uses the same accounting policies and procedures to measure segment pretax adjusted operating earnings as used in its reporting of consolidated net income.

Its primary measure is pretax adjusted operating earnings, which is defined as net income recorded in accordance with GAAP, excluding certain items that may be highly variable from period to period due to accounting treatment under GAAP, or that are non-recurring in nature, as well as certain other revenues and expenses which are not considered to drive underlying performance.

Pretax adjusted operating earnings is defined as net income recorded in accordance with GAAP, excluding certain items that may be highly variable from period to period due to accounting treatment under GAAP, or that are non-recurring in nature, as well as certain other revenues and expenses that are not considered drivers of underlying performance.

Operating revenues and pretax adjusted operating earnings should not be used as a substitute for revenues and net income as calculated in accordance with GAAP.

19 unchanged sentences

• Assumption changes :

the impact on the valuation of Net Derivative and Reserve Movements, including amortization on DAC, arising from changes in underlying actuarial assumptions on an annual basis;

the impact on the valuation of Net Derivative and Reserve Movements, including amortization of DAC, arising from changes in underlying actuarial assumptions on an annual basis;

Net Realized Investment Gains and Losses including change in fair value of funds withheld embedded derivative:

6 unchanged sentences

one-time or other non-recurring items, such as costs relating to the Demerger and our separation from Prudential, the impact of discontinued operations and investments that are consolidated on our financial statements due to U.S.

GAAP accounting requirements, such as our investments in CLOs, but for which the consolidation effects are not aligned with our economic interest or exposure to those entities.

GAAP accounting requirements, such as our investments in collateralized loan obligations ("CLOs"), but for which the consolidation effects are not aligned with our economic interest or exposure to those entities.

Operating income taxes are calculated using the prevailing corporate federal income tax rate of 21% while taking into account any items recognized differently in our financial statements and federal income tax returns, including the dividends received deduction and other tax credits.

3 unchanged sentences

Set forth in the tables below is certain information with respect to the Company’s segments, as described above (in millions):

Three Months Ended June 30, 2022 Retail Annuities Institutional

Three Months Ended September 30, 2022 Retail Annuities Institutional

Products Closed Life

11 unchanged sentences

Interest credited on other contract holder funds, net

of deferrals 71 47 99 — 217

of deferrals and amortization 72 51 101 — 224

Interest expense 8 — — 21 29

Operating costs and other expenses, net of deferrals 541 1 22 28 592

Deferred acquisition and sales inducements

amortization 346 — — 8 354

Amortization of deferred acquisition costs 100 — 3 1 104

Total Operating Benefits and Expenses 726 52 302 50 1,130

Pretax Adjusted Operating Earnings $ 364 $ 20 $ 33 $ ( 13 ) $ 404

Three Months Ended June 30, 2021 Retail Annuities Institutional

Three Months Ended September 30, 2021 Retail Annuities Institutional

Products Closed Life

11 unchanged sentences

Interest credited on other contract holder funds, net

of deferrals 66 48 103 — 217

of deferrals and amortization 56 47 106 — 209

Interest expense 6 ( 2 ) — 2 6

Operating costs and other expenses, net of deferrals 614 2 38 31 685

Deferred acquisition and sales inducements

amortization ( 31 ) — 2 8 ( 21 )

Amortization of deferred acquisition costs 160 — 4 10 174

Total Operating Benefits and Expenses 874 47 364 43 1,328

2 unchanged sentences

Segment Information

Six Months Ended June 30, 2022 Retail Annuities Institutional

Nine Months Ended September 30, 2022 Retail Annuities Institutional

Products Closed Life

11 unchanged sentences

Interest credited on other contract holder funds, net

of deferrals and amortization

191 137 300 — 628

1 unchanged sentence

Operating costs and other expenses, net of deferrals 1,648 4 74 74 1,800

Deferred acquisition and sales inducements

amortization 503 — 4 17 524

Amortization of deferred acquisition costs 602 — 7 18 627

Total Operating Benefits and Expenses 2,514 141 1,017 146 3,818

Pretax Adjusted Operating Earnings $ 988 $ 62 $ 31 $ ( 16 ) $ 1,065

Six Months Ended June 30, 2021 Retail Annuities Institutional

Nine Months Ended September 30, 2021 Retail Annuities Institutional

Products Closed Life

11 unchanged sentences

Interest credited on other contract holder funds, net

of deferrals 133 100 207 — 440

of deferrals and amortization 168 147 315 — 630

Interest expense 17 — — 2 19

Operating costs and other expenses, net of deferrals 1,780 4 131 111 2,026

Deferred acquisition and sales inducements

amortization 73 — 7 15 95

Amortization of deferred acquisition costs 232 — 11 25 268

Total Operating Benefits and Expenses 2,287 151 1,086 138 3,662

1 unchanged sentence

Intersegment eliminations in the above tables are included in the Corporate and Other segment.

These include the elimination of investment income, net of deferred acquisition costs amortization, between Retail Annuities and the Corporate and Other segments, as well as the elimination from fee income and investment income of investment fees paid by Jackson to its affiliate PPM, which were $ 15 million for both the three months ended June 30, 2022 and 2021 , respectively, and $ 29 million and $ 30 million for the six months ended June 30, 2022 and 2021, respectively .

These include the elimination of investment income, net of deferred acquisition costs amortization, between Retail Annuities and the Corporate and Other segments, as well as the elimination from fee income and investment income of investment fees paid by Jackson to its affiliate PPM, which were $ 18 million and $ 17 million for the three months ended September 30, 2022 and 2021 , respectively, and $ 52 million and $ 52 million for the nine months ended September 30, 2022 and 2021, respectively .

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 3.

1 unchanged sentence

The following table summarizes the reconciling items from the non-GAAP measure of operating revenues to the GAAP measure of total revenues attributable to the Company (in millions):

Three Months Ended June 30, Six Months Ended June 30,

Three Months Ended September 30, Nine Months Ended September 30,

2022 2021 2022 2021

7 unchanged sentences

$ 4,022 $ 1,575 $ 14,932 $ 7,522

(1) Substantially all of the Company's revenues originated in the United States.

(1) Substantially all the Company's revenues originated in the United States.

There were no individual customers that exceeded 10% of total revenues.

The following table summarizes the reconciling items from the non-GAAP measure of operating benefits and expenses to the GAAP measure of total benefits and expenses attributable to the Company (in millions):

Three Months Ended June 30, Six Months Ended June 30,

Three Months Ended September 30, Nine Months Ended September 30,

2022 2021 2022 2021

2 unchanged sentences

Amortization of DAC and DSI related to non-operating revenues and expenses 458 ( 169 ) 1,648 284

SOP 03-1 reserve movements 632 ( 21 ) 901 ( 4 )

Statement of Position 03-1 reserve movements 341 127 1,242 123

Other items 1 12 2 63

1 unchanged sentence

The following table summarizes the reconciling items, net of deferred acquisition costs and deferred sales inducements, from the non-GAAP measure of pretax adjusted operating earnings to the GAAP measure of net income attributable to the Company (in millions):

Three Months Ended June 30, Six Months Ended June 30,

Three Months Ended September 30, Nine Months Ended September 30,

2022 2021 2022 2021

22 unchanged sentences

Debt Securities

The following table sets forth the composition of the fair value of debt securities at June 30, 2022 and December 31, 2021, classified by rating categories as assigned by nationally recognized statistical rating organizations (“NRSRO”), the National Association of Insurance Commissioners (“NAIC”), or if not rated by such organizations, the Company’s investment advisors.

The following table sets forth the composition of the fair value of debt securities at September 30, 2022 and December 31, 2021, classified by rating categories as assigned by nationally recognized statistical rating organizations (“NRSRO”), the National Association of Insurance Commissioners (“NAIC”), or if not rated by such organizations, the Company’s investment advisors.

The Company uses the second lowest rating by an NRSRO when NRSRO ratings are not equivalent and, for purposes of the table, if not otherwise rated by a NRSRO, the NAIC rating of a security is converted to an equivalent NRSRO-style rating.

At June 30, 2022 and December 31, 2021, the carrying value of investments rated by the Company’s consolidated investment advisor totaled $ 76 million and $ 13 million, respectively.

At September 30, 2022 and December 31, 2021, the carrying value of investments rated by the Company’s consolidated investment advisor totaled $ 72 million and $ 13 million, respectively.

Percent of Total Debt

Securities Carrying Value

June 30, 2022 December 31, 2021

September 30, 2022 December 31, 2021

Investment Rating

7 unchanged sentences

100.0 % 100.0 %

At June 30, 2022, based on ratings by NRSROs, of the total carrying value of debt securities in an unrealized loss position, 76 % were investment grade, 3 % were below investment grade and 21 % were not rated.

At September 30, 2022, based on ratings by NRSROs, of the total carrying value of debt securities in an unrealized loss position, 73 % were investment grade, 7 % were below investment grade and 20 % were not rated.

Unrealized losses on debt securities that were below investment grade or not rated were approximately 20 % of the aggregate gross unrealized losses on available-for-sale debt securities.

2 unchanged sentences

Corporate securities in an unrealized loss position were diversified across industries.

As of June 30, 2022, the industries accounting for the largest percentage of unrealized losses included utilities ( 13 % of corporate gross unrealized losses) and energy ( 10 %).

The largest unrealized loss related to a single corporate obligor was $ 52 million at June 30, 2022.

As of September 30, 2022, the industries accounting for the largest percentage of unrealized losses included utilities ( 16 % of corporate gross unrealized losses) and healthcare ( 10 %).

The largest unrealized loss related to a single corporate obligor was $ 61 million at September 30, 2022.

As of December 31, 2021, the industries accounting for the largest percentage of unrealized losses included financial services ( 16 % of corporate gross unrealized losses) and consumer goods ( 15 %).

1 unchanged sentence

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 4.

At June 30, 2022 and December 31, 2021, the amortized cost, allowance for credit loss ("ACL"), gross unrealized gains and losses, and fair value of debt securities, including trading securities and securities carried at fair value under the fair value option, were as follows (in millions):

At September 30, 2022 and December 31, 2021, the amortized cost, allowance for credit loss ("ACL"), gross unrealized gains and losses, and fair value of debt securities, including trading securities and securities carried at fair value under the fair value option, were as follows (in millions):

Allowance Gross Gross

Amortized for Unrealized Unrealized Fair

June 30, 2022 Cost (1)

September 30, 2022 Cost (1)

Credit Loss Gains Losses Value

20 unchanged sentences

(1) Amortized cost, apart from the carrying value for securities carried at fair value under the fair value option and trading securities.

The amortized cost, ACL, gross unrealized gains and losses, and fair value of debt securities at June 30, 2022, by contractual maturity, are shown below (in millions).

The amortized cost, ACL, gross unrealized gains and losses, and fair value of debt securities at September 30, 2022, by contractual maturity, are shown below (in millions).

Actual maturities may differ from contractual maturities where securities can be called or prepaid with or without early redemption penalties.

13 unchanged sentences

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 4.

Securities with a carrying value of $ 98 million and $ 117 million at June 30, 2022 and December 31, 2021, respectively, were on deposit with regulatory authorities, as required by law in various states in which business is conducted.

Residential mortgage-backed securities (“RMBS”) include certain RMBS that are collateralized by residential mortgage loans and are neither explicitly nor implicitly guaranteed by U.S.

As required by law in various states in which business is conducted, securities with a carrying value of $ 90 million and $ 117 million at September 30, 2022 and December 31, 2021, respectively, were on deposit with regulatory authorities.

Residential mortgage-backed securities (“RMBS”) include certain RMBS that are collateralized by residential mortgage loans and are neither expressly nor implicitly guaranteed by U.S.

government agencies (“non-agency RMBS”).

2 unchanged sentences

Amortized for Unrealized Unrealized Fair

June 30, 2022 Cost (1)

September 30, 2022 Cost (1)

Credit Loss Gains Losses Value

18 unchanged sentences

The following table summarizes the number of securities, fair value and the gross unrealized losses of debt securities, aggregated by investment category and length of time that individual debt securities have been in a continuous loss position (dollars in millions):

June 30, 2022 December 31, 2021

September 30, 2022 December 31, 2021

Less than 12 months Less than 12 months

22 unchanged sentences

Total temporarily impaired securities $ 2,123 $ 5,196 601 $ 366 $ 4,006 104

Value Gross Fair

Unrealized # of Unrealized # of

Losses securities Losses securities

Unrealized Fair # of Unrealized Fair # of

Losses Value securities (1)

government securities $ 1,008 $ 3,894 43 $ 301 $ 3,297 23

7 unchanged sentences

Total temporarily impaired securities $ 7,236 $ 39,923 4,868 $ 612 $ 15,141 1,448

(1) Certain corporate securities contain multiple lots and fit the criteria of both aging groups.

Debt securities in an unrealized loss position as of June 30, 2022 did not require an impairment recognized in earnings as (i) the Company did not intend to sell these debt securities, (ii) it is not more likely than not that the Company will be required to sell these securities before recovery of their amortized cost basis, and (iii) the difference in the fair value compared to the amortized cost was due to factors other than credit loss.

(1) Certain securities contain multiple lots and fit the criteria of both aging groups.

Debt securities in an unrealized loss position as of September 30, 2022 did not require an impairment recognized in earnings as (i) the Company did not intend to sell these debt securities, (ii) it is not more likely than not that the Company will be required to sell these securities before recovery of their amortized cost basis, and (iii) the difference in the fair value compared to the amortized cost was due to factors other than credit loss.

Based upon this evaluation, the Company believes it has the ability to generate adequate amounts of cash from normal operations to meet cash requirements with a reasonable margin of safety without requiring the sale of impaired securities.

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 4.

As of June 30, 2022, unrealized losses associated with debt securities are primarily due to widening credit spreads or rising risk-free rates since purchase.

As of September 30, 2022, unrealized losses associated with debt securities are primarily due to widening credit spreads or rising risk-free rates since purchase.

The Company performed a detailed analysis of the financial performance of the underlying issues in an unrealized loss position and determined that recovery of the entire amortized cost of each impaired security is expected.

6 unchanged sentences

For debt securities in an unrealized loss position, management first assesses whether the Company has the intent to sell, or whether it is more likely than not it will be required to sell the security before the amortized cost basis is fully recovered.

If either criteria is met, the amortized cost is written down to fair value through net gains (losses) on derivatives and investments as an impairment.

If either criterion is met, the amortized cost is written down to fair value through net gains (losses) on derivatives and investments as an impairment.

Debt securities in an unrealized loss position for which the Company does not have the intent to sell or is not more likely than not to sell the security before recovery to amortized cost are further evaluated to determine if the cause of the decline in fair value resulted from credit losses or other factors, which includes estimates about the operations of the issuer and future earnings potential.

27 unchanged sentences

Accrued interest receivables that are determined to be uncollectible are written off with a corresponding reduction to net investment income.

Accrued interest of nil was written off both during the three and six months ended June 30, 2022 and 2021.

Accrued interest of nil was written off during the three and nine months ended September 30, 2022 and 2021.

The roll forward of the allowance for credit loss for available-for-sale securities by sector is as follows (in millions):

Three Months Ended June 30, 2022 US

Three Months Ended September 30, 2022 US

securities Other government securities Public

1 unchanged sentence

asset-backed securities Total

Balance at April 1, 2022 $ — $ 6 $ — $ 22 $ 2 $ — $ 2 $ 32

Balance at July 1, 2022 $ — $ 6 $ 1 $ 30 $ 6 $ — $ — $ 43

Additions for which credit loss was not previously recorded — — — 12 1 — — 13

5 unchanged sentences

Securities intended/required to be sold before recovery of amortized cost basis — — — ( 11 ) — — — ( 11 )

Balance at June 30, 2022 (2)

Balance at September 30, 2022 (2)

$ — $ 3 $ — $ 23 $ 5 $ — $ — $ 31

Three Months Ended June 30, 2021 US

Three Months Ended September 30, 2021 US

securities Other government securities Public

1 unchanged sentence

asset-backed securities Total

Balance at April 1, 2021 $ — $ — $ — $ — $ 1 $ — $ 4 $ 5

Balance at July 1, 2021 $ — $ — $ — $ — $ 1 $ — $ 6 $ 7

Additions for which credit loss was not previously recorded — — — — 1 — — 1

5 unchanged sentences

Securities intended/required to be sold before recovery of amortized cost basis — — — — — — — —

Balance at June 30, 2021 (2)

Balance at September 30, 2021 (2)

$ — $ — $ — $ — $ 2 $ — $ 7 $ 9

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 4.

Six Months Ended June 30, 2022 US

Nine Months Ended September 30, 2022 US

securities Other government securities Public

9 unchanged sentences

Securities intended/required to be sold before recovery of amortized cost basis — — — ( 16 ) — — — ( 16 )

Balance at June 30, 2022 (2)

Balance at September 30, 2022 (2)

$ — $ 3 $ — $ 23 $ 5 $ — $ — $ 31

Six Months Ended June 30, 2021 US

Nine Months Ended September 30, 2021 US

securities Other government securities Public

9 unchanged sentences

Securities intended/required to be sold before recovery of amortized cost basis — — — — — — — —

Balance at June 30, 2021 (2)

Balance at September 30, 2021 (2)

$ — $ — $ — $ — $ 2 $ — $ 7 $ 9

(1) Represents purchased credit-deteriorated ("PCD") fixed maturity available-for-sale securities.

(2) Accrued interest receivable on debt securities totaled $ 382 million and $ 397 million as of June 30, 2022 and 2021, respectively, and was excluded from the determination of credit losses for the three and six months ended June 30, 2022 and 2021.

(2) Accrued interest receivable on debt securities totaled $ 414 million and $ 397 million as of September 30, 2022 and 2021, respectively, and was excluded from the determination of credit losses for the three and nine months ended September 30, 2022 and 2021.

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 4.

1 unchanged sentence

The sources of net investment income were as follows (in millions):

Three Months Ended June 30, Six Months Ended June 30,

Three Months Ended September 30, Nine Months Ended September 30,

2022 2021 2022 2021

17 unchanged sentences

Net investment income $ 640 $ 837 $ 2,022 $ 2,568

(1) Includes unrealized gains and losses on trading securities and includes $( 95 ) million and $( 85 ) million for the three and six months ended June 30, 2022, respectively, and nil and $ 38 million for the three and six months ended June 30, 2021, respectively, related to the change in fair value for securities carried under the fair value option.

(2) Includes management fees, administrative fees, legal fees, and other expenses related to the consolidation of certain investments.

(3) Includes interest expense and market appreciation on deferred compensation;

investment software expense, custodial fees, and other bank fees;

(1) Includes unrealized gains and losses on trading securities and includes $( 8 ) million and $( 103 ) million for the three and nine months ended September 30, 2022, respectively, and $( 1 ) million and $ 37 million for the three and nine months ended September 30, 2021, respectively, related to the change in fair value for securities carried under the fair value option.

(2) Includes interest expense and change in fair value related to notes issued by consolidated VIE's, management fees, administrative fees, legal fees, and other expenses related to the consolidation of certain investments.

(3) Includes interest expense, investment software expense, custodial fees, and other bank fees;

institutional product issuance related expenses;

and other expenses.

Unrealized gains (losses) included in investment income that were recognized on equity securities held were $( 13 ) million and $ 10 million, for the three months ended June 30, 2022 and 2021, respectively, and $( 31 ) million and $ 15 million, for the six months ended June 30, 2022 and 2021, respectively.

Unrealized gains (losses) included in investment income that were recognized on equity securities held were $( 17 ) million and $ 6 million, for the three months ended September 30, 2022 and 2021, respectively, and $( 48 ) million and $ 21 million, for the nine months ended September 30, 2022 and 2021, respectively.

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 4.

1 unchanged sentence

The following table summarizes net gains (losses) on derivatives and investments (in millions):

Three Months Ended June 30, Six Months Ended June 30,

Three Months Ended September 30, Nine Months Ended September 30,

2022 2021 2022 2021

4 unchanged sentences

Credit loss income (expense) on mortgage loans ( 5 ) 14 ( 2 ) 62

71 ( 18 ) 83 50

Net gains (losses) excluding derivatives and funds withheld assets ( 6 ) 37 ( 131 ) 204

5 unchanged sentences

These gains (losses) are increased or decreased by changes in the embedded derivative liability related to the Athene Reinsurance Agreement and also include (i) changes in the related funds withheld payable, as all economic performance of the investments held in the segregated accounts inure to the benefit of the reinsurers under the respective reinsurance agreements with each reinsurer, and (ii) amortization of the difference between book value and fair value of the investments as of the effective date of the reinsurance agreements with each reinsurer.

The aggregate fair value of securities sold at a loss for the three and six months ended June 30, 2022 was $ 506 million and $ 2,898 million, which was approximately 93 % and 92 % of book value, respectively.

The aggregate fair value of securities sold at a loss for the three and six months ended June 30, 2021 was $ 888 million and $ 1,184 million, which was approximately 94 % of book value in both periods.

Proceeds from sales of available-for-sale debt securities were $ 0.8 billion and $ 4.9 billion during the three and six months ended June 30, 2022, respectively, and $ 2.8 billion and $ 5.6 billion during the three and six months ended June 30, 2021, respectively.

The aggregate fair value of securities sold at a loss for the three and nine months ended September 30, 2022 was $ 1,068 million and $ 3,966 million, which was approximately 94 % and 93 % of book value, respectively.

The aggregate fair value of securities sold at a loss for the three and nine months ended September 30, 2021 was $ 161 million and $ 1,345 million, which was approximately 98 % and 95 % of book value, respectively.

Proceeds from sales of available-for-sale debt securities were $ 1.4 billion and $ 6.3 billion during the three and nine months ended September 30, 2022, respectively, and $ 1.0 billion and $ 1.9 billion during the three and nine months ended September 30, 2021, respectively.

There are inherent uncertainties in assessing the fair values assigned to the Company’s investments.

7 unchanged sentences

Consolidated Variable Interest Entities ("VIEs")

The Company funds affiliated limited liability companies to facilitate the issuance of collateralized loan obligations ("CLOs").

The Company funds affiliated limited liability companies to facilitate the issuance of collateralized loan obligations.

The Company concluded that these limited liability companies are VIEs and that the Company is the primary beneficiary as it has the power to direct the most significant activities affecting the performance of the entity as well as the obligation to absorb losses or the right to receive benefits that could potentially be significant to the entity.

In April 2022, the Company reinvested in collateralized loan obligation issuances resulting in the increase of consolidated assets and liabilities.

In April 2022, the Company reinvested in collateralized loan obligation issuances resulting in an increase of consolidated assets and liabilities.

The Company’s exposure to loss is limited to the capital invested and unfunded capital commitments.

8 unchanged sentences

Asset and liability information for the consolidated VIEs included on the Condensed Consolidated Balance Sheets are as follows (in millions):

June 30, 2022 December 31, 2021

September 30, 2022 December 31, 2021

Debt securities, at fair value under fair value option $ 1,965 $ 1,546

1 unchanged sentence

Equity securities 111 129

Limited partnerships 1,491 1,309

Other invested assets 1,496 1,309

Cash and cash equivalents 53 120

1 unchanged sentence

Total assets $ 3,745 $ 3,266

Debt owed to non-controlling interests $ 1,757 $ 1,404

Notes issued by consolidated VIEs, at fair value under fair value option $ 1,745 $ 1,404

Other liabilities 407 307

8 unchanged sentences

In addition, the Company does not have the obligation to absorb losses or the right to receive benefits that could potentially be significant to the entities.

Therefore, the Company does not consolidate these VIEs and the carrying amounts of the Company’s investments in these LPs and LLCs are recognized in other invested assets on the consolidated balance sheets.

Therefore, the Company does not consolidate these VIEs and the carrying amounts of the Company’s investments in these LPs and LLCs are recognized in other invested assets on the Condensed Consolidated Balance Sheets.

Unfunded capital commitments for these investments are detailed in Note 14.

The Company’s exposure to loss is limited to the capital invested and unfunded capital commitments related to the LPs/LLCs, for both consolidated and unconsolidated VIEs, which was $ 4,276 million and $ 3,860 million as of June 30, 2022 and December 31, 2021, respectively.

The Company’s exposure to loss is limited to the capital invested and unfunded capital commitments related to the LPs/LLCs, which was $ 4,321 million and $ 3,860 million as of September 30, 2022 and December 31, 2021, respectively.

The capital invested in an LP or LLC equals the original capital contributed, increased for additional capital contributed after the initial investment, and reduced for any returns of capital from the LP or LLC.

2 unchanged sentences

Based on the analysis of these entities, the Company is not the primary beneficiary of the VIEs.

Mutual funds for which the Company does not have the obligation to absorb losses or the right to receive benefits that could potentially be significant to the entities are recognized in equity securities on the Condensed Consolidated Balance Sheets and were $ 28 million and $ 33 million as of June 30, 2022 and December 31, 2021, respectively.

Mutual funds for which the Company does not have the obligation to absorb losses or the right to receive benefits that could potentially be significant to the entities are recognized in equity securities on the Condensed Consolidated Balance Sheets and were $ 26 million and $ 33 million as of September 30, 2022 and December 31, 2021, respectively.

The Company’s maximum exposure to loss on these mutual funds is limited to the amortized cost for these investments.

7 unchanged sentences

Commercial and Residential Mortgage Loans

Commercial mortgage loans of $ 10.8 billion and $ 10.5 billion at June 30, 2022 and December 31, 2021, respectively, are reported net of an allowance for credit losses of $ 77 million and $ 85 million at each date, respectively.

At June 30, 2022, commercial mortgage loans were collateralized by properties located in 38 states, the District of Columbia, and Europe.

Accrued interest receivable on commercial mortgage loans was $ 35 million and $ 32 million at June 30, 2022 and December 31, 2021, respectively.

Residential mortgage loans of $ 1,170 million and $ 939 million at June 30, 2022 and December 31, 2021, respectively, are reported net of an allowance for credit losses of $ 3 million and $ 9 million at each date, respectively.

Commercial mortgage loans of $ 10.5 billion and $ 10.5 billion at September 30, 2022 and December 31, 2021, respectively, are reported net of an allowance for credit losses of $ 76 million and $ 85 million at each date, respectively.

At September 30, 2022, commercial mortgage loans were collateralized by properties located in 38 states, the District of Columbia, and Europe.

Accrued interest receivable on commercial mortgage loans was $ 37 million and $ 32 million at September 30, 2022 and December 31, 2021, respectively.

Residential mortgage loans of $ 1,280 million and $ 939 million at September 30, 2022 and December 31, 2021, respectively, are reported net of an allowance for credit losses of $ 3 million and $ 9 million at each date, respectively.

Loans were collateralized by properties located in 50 states, the District of Columbia, Mexico, and Europe.

Accrued interest receivable on residential mortgage loans was $ 9 million and $ 13 million at June 30, 2022 and December 31, 2021, respectively.

Accrued interest receivable on residential mortgage loans was $ 9 million and $ 13 million at September 30, 2022 and December 31, 2021, respectively.

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 4.

1 unchanged sentence

In response to the adverse economic impact of the COVID-19 pandemic, the Company granted concessions to certain of its commercial mortgage loan borrowers, including payment deferrals and other loan modifications.

The Company has elected the option under the Coronavirus Aid, Relief, and Economic Security Act, the Consolidated Appropriations Act of 2021, and the Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus (Revised) issued by bank regulatory agencies, not to account for or report qualifying concessions as troubled debt restructurings and does not classify such loans as past due during the payment deferral period.

Additionally, in accordance with the FASB’s published response to a COVID-19 Pandemic technical inquiry, the Company

continues to accrue interest income on such loans that have deferred payment.

For some commercial mortgage loan borrowers (principally in the hotel and retail sectors), the Company granted concessions which were primarily interest and/

or principal payment deferrals generally ranging from 6 to 14 months and, to a much lesser extent, maturity date extensions.

The Company has elected the option under the Coronavirus Aid, Relief, and Economic Security Act, the Consolidated Appropriations Act of 2021, and the Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus (Revised) not to account for or report qualifying concessions as troubled debt restructurings and does not classify such loans as past due during the payment deferral period.

Additionally, in accordance with the FASB’s published response to a COVID-19 Pandemic technical inquiry, the Company continues to accrue interest income on such loans that have deferred payment.

For some commercial mortgage loan borrowers (principally in the hotel and retail sectors), the Company granted concessions which were primarily interest and/or principal payment deferrals generally ranging from 6 to 14 months and, to a much lesser extent, maturity date extensions.

Repayment periods are generally within one year but may extend until maturity date.

Deferred commercial mortgage loan interest and principal payments were $ 11 million at June 30, 2022.

Deferred commercial mortgage loan interest and principal payments were $ 11 million at September 30, 2022.

The concessions granted had no impact on the Company’s results of operations or financial position as the Company has not granted concessions that would have been disclosed and accounted for as troubled debt restructurings.

5 unchanged sentences

The debt service coverage ratios (“DSCR”) and loan to values (“LTV”) are calculated over the forecastable period by comparing the projected net operating income and property valuations to the loan payment and principal amounts of each loan.

The model utilizes historical mortgage loan performance based on DSCRs and LTV to derive probability of default and expected losses based on the economic scenario that is similar to the Company’s expectations of economic factors such as unemployment, GDP growth, and interest rates.

The Company determined the forecastable period to be reasonable and supportable for a period of two years beyond the end of the reporting period.

8 unchanged sentences

The following table provides a summary of the allowance for credit losses in the Company’s mortgage loan portfolios (in millions):

Three Months Ended June 30, 2022 Apartment Hotel Office Retail Warehouse Residential Mortgage Total

Balance at April 1, 2022 $ 21 $ 9 $ 22 $ 14 $ 12 $ 6 $ 84

Three Months Ended September 30, 2022 Apartment Hotel Office Retail Warehouse Residential Mortgage Total

Balance at July 1, 2022 $ 21 $ 18 $ 16 $ 13 $ 9 $ 3 $ 80

Charge offs, net of recoveries — — — — — — —

Provision (release) ( 5 ) ( 1 ) ( 3 ) 8 — — ( 1 )

Balance at June 30, 2022 (1)

Balance at September 30, 2022 (1)

$ 16 $ 17 $ 13 $ 21 $ 9 $ 3 $ 79

Three Months Ended June 30, 2021 Apartment Hotel Office Retail Warehouse Residential Mortgage Total

Balance at April 1, 2021 $ 27 $ 22 $ 16 $ 15 $ 13 $ 20 $ 113

Three Months Ended September 30, 2021 Apartment Hotel Office Retail Warehouse Residential Mortgage Total

Balance at July 1, 2021 $ 26 $ 33 $ 20 $ 23 $ 12 $ 21 $ 135

Charge offs, net of recoveries — — — — — — —

Provision (release) ( 5 ) ( 18 ) 3 ( 7 ) ( 1 ) ( 11 ) ( 39 )

Balance at June 30, 2021 (1)

Balance at September 30, 2021 (1)

$ 21 $ 15 $ 23 $ 16 $ 11 $ 10 $ 96

Six Months Ended June 30, 2022 Apartment Hotel Office Retail Warehouse Residential Mortgage Total

Nine Months Ended September 30, 2022 Apartment Hotel Office Retail Warehouse Residential Mortgage Total

Balance at January 1, 2022 $ 19 $ 9 $ 28 $ 17 $ 12 $ 9 $ 94

1 unchanged sentence

Provision (release) ( 3 ) 8 ( 15 ) 4 ( 3 ) ( 6 ) ( 15 )

Balance at June 30, 2022 (1)

Balance at September 30, 2022 (1)

$ 16 $ 17 $ 13 $ 21 $ 9 $ 3 $ 79

Six Months Ended June 30, 2021 Apartment Hotel Office Retail Warehouse Residential Mortgage Total

Nine Months Ended September 30, 2021 Apartment Hotel Office Retail Warehouse Residential Mortgage Total

Balance at January 1, 2021 $ 58 $ 34 $ 25 $ 24 $ 24 $ 14 $ 179

1 unchanged sentence

Provision (release) ( 37 ) ( 19 ) ( 2 ) ( 8 ) ( 13 ) ( 4 ) ( 83 )

Balance at June 30, 2021 (1)

Balance at September 30, 2021 (1)

$ 21 $ 15 $ 23 $ 16 $ 11 $ 10 $ 96

(1) Accrued interest receivable totaled $ 44 million and $ 40 million as of June 30, 2022 and 2021, respectively, and was excluded from the determination of credit losses.

(1) Accrued interest receivable totaled $ 46 million and $ 48 million as of September 30, 2022 and 2021, respectively, and was excluded from the determination of credit losses.

The Company’s mortgage loans that are current and in good standing are accruing interest.

1 unchanged sentence

Delinquency status is determined from the date of the first missed contractual payment.

At June 30, 2022, there was $ 18 million of recorded investment, $ 19 million of unpaid principal balance, no related loan allowance, $ 12 million of average recorded investment, and no investment income recognized on impaired residential mortgage loans.

At September 30, 2022, there was $ 17 million of recorded investment, $ 18 million of unpaid principal balance, no related loan allowance, $ 15 million of average recorded investment, and no investment income recognized on impaired residential mortgage loans.

At December 31, 2021, there was $ 6 million of recorded investment, $ 7 million of unpaid principal balance, no related loan allowance, $ 2 million of average recorded investment, and no investment income recognized on impaired residential mortgage loans.

1 unchanged sentence

The following tables provide information about the credit quality with vintage year and category of mortgage loans (in millions):

June 30, 2022

September 30, 2022

2022 2021 2020 2019 2018 Prior Revolving

40 unchanged sentences

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 4.

June 30, 2022

September 30, 2022

In Good Standing (1)

21 unchanged sentences

Total $ 11,270 $ — $ 206 $ 6 $ 11,482

(1) At June 30, 2022 and December 31, 2021, includes mezzanine loans of $ 420 million and $ 278 million in the Apartment category, $ 69 million and $ 75 million in the Hotel category, $ 259 million and $ 252 million in the Office category, $ 27 million and $ 27 million in the Retail category, and $ 55 million and $ 26 million in the Warehouse category, respectively.

(2) At June 30, 2022 and December 31, 2021, includes $ 56 million and $ 202 million of loans purchased when the loans were greater than 90 days delinquent and $ 15 million and $ 5 million of loans in process of foreclosure, and are supported with insurance or other guarantees provided by various governmental programs, respectively.

As of June 30, 2022 and December 31, 2021, there were no commercial mortgage loans involved in troubled debt restructuring, and stressed mortgage loans for which the Company is dependent, or expects to be dependent, on the underlying property to satisfy repayment were $ 3 million.

(1) At September 30, 2022 and December 31, 2021, includes mezzanine loans of $ 379 million and $ 278 million in the Apartment category, $ 41 million and $ 75 million in the Hotel category, $ 237 million and $ 252 million in the Office category, $ 27 million and $ 27 million in the Retail category, and $ 56 million and $ 26 million in the Warehouse category, respectively.

(2) At September 30, 2022 and December 31, 2021, includes $ 48 million and $ 202 million of loans purchased when the loans were greater than 90 days delinquent and $ 14 million and $ 5 million of loans in process of foreclosure, and are supported with insurance or other guarantees provided by various governmental programs, respectively.

As of September 30, 2022 and December 31, 2021, there were no commercial mortgage loans involved in troubled debt restructuring, and stressed mortgage loans for which the Company is dependent, or expects to be dependent, on the underlying property to satisfy repayment were $ 4 million and nil , respectively.

Other Invested Assets

1 unchanged sentence

Federal Home Loan Bank capital stock is carried at cost and adjusted for any impairment.

At June 30, 2022 and December 31, 2021, FHLB capital stock had carrying value of $ 146 million and $ 125 million, respectively.

At September 30, 2022 and December 31, 2021, FHLB capital stock had carrying value of $ 146 million and $ 125 million, respectively.

Real estate is carried at the lower of depreciated cost or fair value.

At June 30, 2022 and December 31, 2021, real estate totaling $ 241 million and $ 243 million, respectively, included foreclosed properties with a book value of $ 1 million at both June 30, 2022 and December 31, 2021.

At September 30, 2022 and December 31, 2021, real estate totaling $ 238 million and $ 243 million, respectively, included foreclosed properties with a book value of nil and $ 1 million at September 30, 2022 and December 31, 2021, respectively.

Carrying values for limited partnership investments are generally determined by using the proportion of the Company’s investment in each fund (Net Asset Value (“NAV”) equivalent) as a practical expedient for fair value, and generally are recorded on a three-month lag, with changes in value included in net investment income.

At June 30, 2022 and December 31, 2021, investments in LPs had carrying values of $ 3,261 million and $ 2,831 million, respectively.

At September 30, 2022 and December 31, 2021, investments in LPs had carrying values of $ 3,238 million and $ 2,831 million, respectively.

In June 2021, the Company entered into an arrangement to sell $ 420 million of limited partnership investments, of which $ 236 million and $ 168 million were sold in the second and third quarter of 2021, respectively, and the remainder was sold in January 2022.

4 unchanged sentences

The Company has entered into securities lending agreements with agent banks whereby blocks of securities are loaned to third parties, primarily major brokerage firms.

As of June 30, 2022 and December 31, 2021, the estimated fair value of loaned securities was $ 31 million and $ 17 million, respectively.

The agreements require a minimum of 102 percent of the fair value of the loaned securities to be held as collateral, calculated on a daily basis.

As of September 30, 2022 and December 31, 2021, the estimated fair value of loaned securities was $ 25 million and $ 17 million, respectively.

The agreements require a minimum of 102 % of the fair value of the loaned securities to be held as collateral, calculated daily.

To further minimize the credit risks related to these programs, the financial condition of counterparties is monitored on a regular basis.

At June 30, 2022 and December 31, 2021, cash collateral received in the amount of $ 32 million and $ 17 million, respectively, was invested by the agent banks and included in cash and cash equivalents of the Company.

At September 30, 2022 and December 31, 2021, cash collateral received in the amount of $ 27 million and $ 17 million, respectively, was invested by the agent banks and included in cash and cash equivalents of the Company.

A securities lending payable for the overnight and continuous loans is included in liabilities in the amount of cash collateral received.

4 unchanged sentences

These agreements are accounted for as financing transactions, with the assets and associated liabilities included in the Condensed Consolidated Balance Sheets.

Short-term borrowings under such agreements averaged $ 271 million for six months ended June 30, 2022 and $ 1,548 million for the year ended December 31, 2021, with weighted average interest rates of 0.19 % and 0.07 %, respectively.

At June 30, 2022 and December 31, 2021, the outstanding repurchase agreement balance was nil and $ 1,572 million, respectively, collateralized with U.S.

Short-term borrowings under such agreements averaged $ 186 million for nine months ended September 30, 2022 and $ 1,548 million for the year ended December 31, 2021, with weighted average interest rates of 0.24 % and 0.07 %, respectively.

At September 30, 2022 and December 31, 2021, the outstanding repurchase agreement balance was nil and $ 1,572 million, respectively, collateralized with U.S.

Treasury notes and corporate securities and maturing within 30 days, and was included within repurchase agreements and securities lending payable in the Condensed Consolidated Balance Sheets.

In the event of a decline in the fair value of the pledged collateral under these agreements, the Company may be required to transfer cash or additional securities as pledged collateral.

Interest expense totaled nil both for the three and six months ended June 30, 2022, respectively, and nil and $ 1 million for the three and six months ended June 30, 2021.

The highest level of short-term borrowings at any month end was $ 584 million and $ 2,257 million for the six months ended June 30, 2022 and 2021, respectively.

Interest expense totaled nil both for the three and nine months ended September 30, 2022, respectively, and nil and $ 1 million for the three and nine months ended September 30, 2021.

The highest level of short-term borrowings at any month end was $ 584 million and $ 2,349 million for the nine months ended September 30, 2022 and 2021, respectively.

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 5.

7 unchanged sentences

A summary of the aggregate contractual or notional amounts and fair values of the Company’s freestanding and embedded derivative instruments are as follows (in millions):

June 30, 2022

September 30, 2022

Contractual/ Assets Liabilities Net

9 unchanged sentences

Put-swaptions 22,000 — 1,781 ( 1,781 )

Treasury futures (2)

Interest rate futures (2)

Total return swaps 739 80 — 80

37 unchanged sentences

Put-swaptions 19,000 133 — 133

Treasury futures (2)

Interest rate futures (2)

Total return swaps — — — —

26 unchanged sentences

The following table reflects the results of the Company’s derivatives, including gains (losses) and change in fair value of freestanding derivative instruments and embedded derivatives (in millions):

Three Months Ended June 30, Six Months Ended June 30,

Three Months Ended September 30, Nine Months Ended September 30,

2022 2021 2022 2021

7 unchanged sentences

Put-swaptions ( 751 ) ( 62 ) ( 1,905 ) 42

Treasury futures ( 1 ) — ( 312 ) ( 773 )

Interest rate futures ( 179 ) ( 123 ) ( 491 ) ( 896 )

Total return swaps 39 — 47 —

9 unchanged sentences

Total net gains (losses) on derivative instruments including derivative instruments related to funds withheld under reinsurance treaties $ 1,770 $ ( 1,166 ) $ 7,974 $ ( 805 )

All of the Company’s trade agreements for freestanding, over-the-counter derivatives, contain credit downgrade provisions that allow a party to assign or terminate derivative transactions if the counterparty’s credit rating declines below an established limit.

At June 30, 2022 and December 31, 2021, the fair value of the Company’s net non-cleared, over-the-counter derivative assets by counterparty were $ 977 million and $ 1,376 million, respectively, and held collateral was $ 879 million and $ 1,576 million, respectively, related to these agreements.

At June 30, 2022 and December 31, 2021, the fair value of the Company’s net non-cleared, over-the-counter derivative liabilities by counterparty were $ 951 million and nil , respectively, and provided collateral was $ 1,128 million and nil , respectively, related to these agreements.

If all of the downgrade provisions had been triggered at June 30, 2022 and December 31, 2021, in aggregate, the Company would have had to disburse nil and $ 200 million, respectively, and would have been allowed to claim $ 275 million and nil , respectively.

All the Company’s trade agreements for freestanding, over-the-counter derivatives, contain credit downgrade provisions that allow a party to assign or terminate derivative transactions if the counterparty’s credit rating declines below an established limit.

At September 30, 2022 and December 31, 2021, the fair value of the Company’s net non-cleared, over-the-counter derivative assets by counterparty were $ 1,453 million and $ 1,376 million, respectively, and held collateral was $ 1,343 million and $ 1,576 million, respectively, related to these agreements.

At September 30, 2022 and December 31, 2021, the fair value of the Company’s net non-cleared, over-the-counter derivative liabilities by counterparty were $ 1,728 million and nil , respectively, and provided collateral was $ 1,707 million and nil , respectively, related to these agreements.

If all the downgrade provisions had been triggered at September 30, 2022 and December 31, 2021, in aggregate, the Company would have had to disburse $ 21 million and $ 200 million, respectively, and would have been allowed to claim $ 110 million and nil , respectively.

Offsetting Assets and Liabilities

5 unchanged sentences

The following tables present the gross and net information about the Company’s financial instruments subject to master netting arrangements (in millions):

June 30, 2022

September 30, 2022

Recognized Gross

44 unchanged sentences

The actual amount of collateral may be greater than amounts presented in the tables.

The above tables exclude net embedded derivative liabilities of $ 1,692 million and $ 4,071 million as of June 30, 2022 and December 31, 2021, respectively, as these derivatives are not subject to master netting arrangements.

The above tables also exclude the funds withheld embedded derivative asset (liability) of $ 2,508 million and $( 120 ) million at June 30, 2022 and December 31, 2021.

The above tables exclude net embedded derivative liabilities of $ 493 million and $ 4,071 million as of September 30, 2022 and December 31, 2021, respectively, as these derivatives are not subject to master netting arrangements.

The above tables also exclude the funds withheld embedded derivative asset (liability) of $ 3,332 million and $( 120 ) million at September 30, 2022 and December 31, 2021.

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 6.

2 unchanged sentences

The following table summarizes the fair value and carrying value of the Company’s financial instruments (in millions):

June 30, 2022 December 31, 2021

September 30, 2022 December 31, 2021

Value Carrying

25 unchanged sentences

Freestanding derivative instruments 2,225 2,225 41 41

Notes issued by consolidated VIEs 1,745 1,745 1,404 1,404

Repurchase agreements — — 1,572 1,572

FHLB advances — — — —

Separate account liabilities 185,042 185,042 248,949 248,949

25 unchanged sentences

Examples of procedures performed include initial and ongoing review of third-party pricing service methodologies, review of pricing statistics and trends, back testing recent trades and monitoring of trading volumes.

In addition, the Company considers whether prices received from independent broker-dealers represent a reasonable estimate of fair value through the use of internal and external cash flow models, which are developed based on spreads and, when available, market indices.

In addition, the Company considers whether prices received from independent broker-dealers represent a reasonable estimate of fair value using internal and external cash flow models, which are developed based on spreads and, when available, market indices.

As a result of this analysis, if the Company determines there is a more appropriate fair value based upon the available market data, the price received from the third party may be adjusted accordingly.

For those securities that were internally valued at June 30, 2022 and December 31, 2021, the pricing model used by the Company utilizes current spread levels of similarly rated securities to determine the market discount rate for the security.

For those securities that were internally valued at September 30, 2022 and December 31, 2021, the pricing model used by the Company utilizes current spread levels of similarly rated securities to determine the market discount rate for the security.

Furthermore, appropriate risk premiums for illiquidity and non-performance are incorporated in the discount rate.

5 unchanged sentences

Fair values for limited partnership interests, which are included in other invested assets, is generally determined using the proportion of the Company’s investment in the value of the net assets of each fund (“NAV equivalent”) as a practical expedient for fair value, and generally, are recorded on a three-month lag.

No adjustments to these amounts were deemed necessary at June 30, 2022 and December 31, 2021.

No adjustments to these amounts were deemed necessary at September 30, 2022 and December 31, 2021.

As a result of using the net asset value per share practical expedient, limited partnership interests are not classified in the fair value hierarchy.

58 unchanged sentences

Volatility assumptions are based on a weighting of available market data for implied market volatility for durations up to 10 years, grading to a historical volatility level by year 15, where such long-term historical volatility levels contain an explicit risk margin.

Additionally, non-performance risk is incorporated into the calculation through the use of discount rates based on a blend of yields on similarly-rated peer debt and yields on JFI debt (adjusted to operating company levels).

Additionally, non-performance risk is incorporated into the calculation by using discount rates based on a blend of yields on similarly-rated peer debt and yields on JFI debt (adjusted to operating company levels).

Risk margins are also incorporated into the model assumptions, particularly for policyholder behavior.

11 unchanged sentences

Additionally, assumed withdrawal rates are used to estimate the expected volume of embedded options that will be realized by policyholders.

Notes Issued by Consolidated VIEs

These notes, at fair value under the fair value option, are based on the fair values of corresponding fixed maturity collateral.

The CLO liabilities are also reduced by the fair value of the beneficial interest the Company retains in the CLO and the carrying value of any beneficial interests that represent compensation for services.

As the notes are valued based on the reference collateral, they are classified as Level 2.

Fair Value Option

The Company elected the fair value option for debt securities related to certain consolidated investments totaling $ 1,991 million and $ 1,546 million at June 30, 2022 and December 31, 2021, respectively.

The Company elected the fair value option for debt securities related to certain consolidated investments totaling $ 1,965 million and $ 1,546 million at September 30, 2022 and December 31, 2021, respectively.

These debt securities are reflected on the Company’s Condensed Consolidated Balance Sheets as debt securities, at fair value under the fair value option.

The Company has elected the fair value option for certain funds withheld assets, which are held as collateral for reinsurance, totaling $ 3,999 million and $ 3,632 million at June 30, 2022 and December 31, 2021, respectively, as discussed above, and includes mortgage loans as discussed below.

The Company has elected the fair value option for certain funds withheld assets, which are held as collateral for reinsurance, totaling $ 4,152 million and $ 3,632 million at September 30, 2022 and December 31, 2021, respectively, as discussed above, and includes mortgage loans as discussed below.

The Company elected the fair value option for certain mortgage loans held under the funds withheld reinsurance agreement.

2 unchanged sentences

The fair value and aggregate contractual principal for mortgage loans where the fair value option was elected after December 31, 2021, were as follows (in millions):

September 30,

Fair value $ 508

Aggregate contractual principal 520

As of June 30, 2022, no loans for which the fair value option was elected were in non-accrual status, and no loans were more than 90 days past due and still accruing interest.

Income and changes in unrealized gains and losses on other assets for which the Company has elected the fair value option are immaterial to the Company’s Condensed Consolidated Financial Statements.

As of September 30, 2022, no loans for which the fair value option was elected were in non-accrual status, and no loans were more than 90 days past due and still accruing interest.

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 6.

Fair Value Measurements

The Company elected the fair value option for notes issued by consolidated VIEs totaling $ 1,745 million and $ 1,404 million at September 30, 2022 and December 31, 2021, respectively.

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following tables summarize the Company’s assets and liabilities that are carried at fair value by hierarchy levels (in millions):

June 30, 2022

September 30, 2022

Total Level 1 Level 2 Level 3

19 unchanged sentences

Funds withheld payable under reinsurance treaties (3)

1,141 — — 1,141

Freestanding derivative instruments 2,225 — 2,225 —

Notes issued by consolidated VIEs 1,745 — 1,745 —

$ 4,777 $ — $ 4,947 $ ( 170 )

(1) Excludes $ 3,237 million of limited partnership investments measured at NAV.

(2) Includes the embedded derivative liabilities of $ 601 million related to GMWB reserves included in reserves for future policy benefits and claims payable, $ 4 million of RILA and $ 1,087 million of fixed index annuities, both included in other contract holder funds on the Condensed Consolidated Balance Sheets.

(2) Includes the embedded derivative of $( 484 ) million related to GMWB reserves included in reserves for future policy benefits and claims payable, liability of $ 10 million related to RILA and $ 967 million liability of fixed index annuities, both included in other contract holder funds on the Condensed Consolidated Balance Sheets.

(3) Includes the Athene embedded derivative asset of $ 3,332 million and funds withheld payable under reinsurance treaties at fair value under the fair value option.

24 unchanged sentences

Freestanding derivative instruments 41 — 41 —

Notes issued by consolidated VIEs 1,404 — 1,404 —

$ 9,275 $ — $ 2,890 $ 6,385

(1) Excludes $ 2,813 million of limited partnership investments measured at NAV.

(2) Includes the embedded derivative liabilities of $ 2,626 million related to GMWB reserves included in reserves for future policy benefits and claims payable, $ 6 million of RILA and $ 1,439 million of fixed index annuities, both included in other contract holder funds on the consolidated balance sheets.

(3) Includes the Athene embedded derivative liability of $ 120 million and funds withheld payable under reinsurance treaties at fair value under the fair value option.

4 unchanged sentences

The table below presents the balances of Level 3 assets and liabilities measured at fair value with their corresponding pricing sources (in millions):

June 30, 2022

September 30, 2022

Assets Total Internal External

11 unchanged sentences

$ ( 170 ) $ ( 170 ) $ —

$ 1,742 $ 1,742 $ —

(1) Includes the embedded derivative related to GMWB reserves.

20 unchanged sentences

The table below presents quantitative information on significant internally-priced Level 3 assets and liabilities (in millions):

As of June 30, 2022

As of September 30, 2022

Value Valuation Technique(s) Significant Unobservable Input(s) Assumption or Input Range Impact of Increase in Input on Fair Value

77 unchanged sentences

The following is a general description of sensitivities of significant unobservable inputs and their impact on the fair value measurement for the assets and liabilities reflected in the tables above.

At both June 30, 2022 and December 31, 2021, securities of $ 2 million are fair valued using techniques incorporating unobservable inputs and are classified in Level 3 of the fair value hierarchy.

At September 30, 2022 and December 31, 2021, securities of $ 1 million and $ 2 million are fair valued using techniques incorporating unobservable inputs and are classified in Level 3 of the fair value hierarchy, respectively.

For these assets, their unobservable inputs and ranges of possible inputs do not materially affect their fair valuations and have been excluded from the quantitative information in the tables above.

9 unchanged sentences

The more significant policyholder behavior actuarial assumptions include benefit utilization, fund allocation, lapse, and mortality.

Embedded derivative liabilities classified in Level 3 represent the fair value of guaranteed minimum withdrawal benefits (“GMWB”) and guaranteed minimum accumulation benefits (“GMAB”) liabilities.

Embedded derivative liabilities classified in Level 3 represent the fair value of guaranteed minimum withdrawal benefits and guaranteed minimum accumulation benefits liabilities.

These fair value calculations are based on the present value of future cash flows comprised of future expected benefit payments, less future attributed rider fees, over the lives of the contracts.

3 unchanged sentences

Fair Value Measurements

The tables below provide rollforwards for the three and six months ended June 30, 2022 and 2021 of the financial instruments for which significant unobservable inputs (Level 3) are used in the fair value measurement.

The tables below provide roll forwards for the three and nine months ended September 30, 2022 and 2021 of the financial instruments for which significant unobservable inputs (Level 3) are used in the fair value measurement.

Gains and losses in the tables below include changes in fair value due partly to observable and unobservable factors.

5 unchanged sentences

as of Other Issuances in and/or as of

April 1, Net Comprehensive and (out of) June 30,

Three Months Ended June 30, 2022 2022 Income Income Settlements Level 3 2022

July 1, Net Comprehensive and (out of) September 30,

Three Months Ended September 30, 2022 2022 Income Income Settlements Level 3 2022

Debt securities

10 unchanged sentences

as of Other Issuances in and/or as of

April 1, Net Comprehensive and (out of) June 30,

Three Months Ended June 30, 2021 2021 Income Income Settlements Level 3 2021

July 1, Net Comprehensive and (out of) September 30,

Three Months Ended September 30, 2021 2021 Income Income Settlements Level 3 2021

Debt securities

11 unchanged sentences

as of Other Issuances in and/or as of

January 1, Net Comprehensive and (out of) June 30,

Six Months Ended June 30, 2022 2022 Income Income Settlements Level 3 2022

January 1, Net Comprehensive and (out of) September 30,

Nine Months Ended September 30, 2022 2022 Income Income Settlements Level 3 2022

Debt securities

10 unchanged sentences

as of Other Issuances in and/or as of

January 1, Net Comprehensive and (out of) June 30,

Six Months Ended June 30, 2021 2021 Income Income Settlements Level 3 2021

January 1, Net Comprehensive and (out of) September 30,

Nine Months Ended September 30, 2021 2021 Income Income Settlements Level 3 2021

Debt securities

8 unchanged sentences

Fair Value Measurements

The components of the amounts included in purchases, sales, issuances and settlements for the three and six months ended June 30, 2022 and 2021 shown above are as follows (in millions):

Three Months Ended June 30, 2022 Purchases Sales Issuances Settlements Total

The components of the amounts included in purchases, sales, issuances and settlements for the three and nine months ended September 30, 2022 and 2021 shown above are as follows (in millions):

Three Months Ended September 30, 2022 Purchases Sales Issuances Settlements Total

Debt securities

5 unchanged sentences

Funds withheld payable under reinsurance treaties $ — $ — $ ( 79 ) $ 49 $ ( 30 )

Three Months Ended June 30, 2021 Purchases Sales Issuances Settlements Total

Three Months Ended September 30, 2021 Purchases Sales Issuances Settlements Total

Debt securities

4 unchanged sentences

Funds withheld payable under reinsurance treaties $ — $ — $ ( 187 ) $ 101 $ ( 86 )

Six Months Ended June 30, 2022 Purchases Sales Issuances Settlements Total

Nine Months Ended September 30, 2022 Purchases Sales Issuances Settlements Total

Debt securities

5 unchanged sentences

Funds withheld payable under reinsurance treaties $ — $ — $ ( 111 ) $ 207 $ 96

Six Months Ended June 30, 2021 Purchases Sales Issuances Settlements Total

Nine Months Ended September 30, 2021 Purchases Sales Issuances Settlements Total

Debt securities

4 unchanged sentences

Funds withheld payable under reinsurance treaties $ — $ — $ ( 398 ) $ 352 $ ( 46 )

For the three and six months ended June 30, 2022 and 2021, there were no transfers from Level 3 to NAV.

For the three and six months ended June 30, 2022, transfers from Level 3 to Level 2 of the fair value hierarchy were $ 1 million and $ 5 million, respectively, and transfers from Level 2 to Level 3 were $ 28 million and $ 35 million, respectively.

For the three and nine months ended September 30, 2022 and 2021, there were no transfers from Level 3 to NAV.

For the three and nine months ended September 30, 2022, transfers from Level 3 to Level 2 of the fair value hierarchy were $ 4 million and $ 9 million, respectively, and transfers from Level 2 to Level 3 were $ 30 million and $ 65 million, respectively.

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 6.

Fair Value Measurements

For the three and six months ended June 30, 2021, transfers from Level 3 to Level 2 of the fair value hierarchy were $ 13 million and $ 23 million, respectively, and transfers from Level 2 to Level 3 were $ 21 million and $ 18 million, respectively.

For the three and nine months ended September 30, 2021, transfers from Level 3 to Level 2 of the fair value hierarchy were $ 29 million and $ 52 million, respectively, and transfers from Level 2 to Level 3 were $ 3 million and $ 21 million, respectively.

The portion of gains (losses) included in net income (loss) or other comprehensive income (loss) ("OCI") attributable to the change in unrealized gains and losses on Level 3 financial instruments still held was as follows (in millions):

Three Months Ended June 30,

Three Months Ended September 30,

Net Income Included in OCI Included in

8 unchanged sentences

Funds withheld payable under reinsurance treaties 857 — 110 —

Six Months Ended June 30,

Nine Months Ended September 30,

Net Income Included in OCI Included in

13 unchanged sentences

Fair values are generally determined by discounting expected future cash flows at current market interest rates, inclusive of a credit spread, for similar quality loans.

For loans whose value is dependent upon the underlying property, fair value is determined to be the estimated value of the collateral.

For loans whose value is dependent on the underlying property, fair value is the estimated value of the collateral.

Certain characteristics considered significant in determining the spread or collateral value may be based on internally developed estimates.

20 unchanged sentences

The fair value of the funds withheld payable is equal to the fair value of the assets held as collateral, which primarily consists of bonds, mortgages, limited partnerships, and cash and cash equivalents.

The fair value of the assets generally use industry standard valuation techniques as described above and the funds withheld payable components are valued consistent with the assets in the fair value hierarchy.

The fair value of the assets generally uses industry standard valuation techniques as described above and the funds withheld payable components are valued consistent with the assets in the fair value hierarchy.

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 6.

14 unchanged sentences

The table below presents the carrying amount and fair value by fair value hierarchy level of certain financial instruments that are not reported at fair value (in millions).

June 30, 2022

September 30, 2022

Value Total Level 1 Level 2 Level 3

11 unchanged sentences

Funds withheld payable under reinsurance treaties 23,586 23,586 — — 23,586

23,496 23,496 422 17,927 5,147

Debt 2,634 2,339 — 2,339 —

25 unchanged sentences

(2) Included as a component of other contract holder funds on the Condensed Consolidated Balance Sheets.

(3) Excludes $ 753 million and $ 715 million of limited partnership investments measured at NAV at June 30, 2022 and December 31, 2021, respectively.

(4) Excludes $ 117 million of non-financial instruments at June 30, 2022.

(3) Excludes $ 715 million of limited partnership investments measured at NAV at December 31, 2021, respectively.

(4) The values of separate account liabilities are set equal to the values of separate account assets.

3 unchanged sentences

The balances of, and changes, in deferred acquisition costs were as follows (in millions):

Six Months Ended June 30,

Nine Months Ended September 30,

Balance, beginning of period $ 14,249 $ 13,897

4 unchanged sentences

See Note 7 of Notes to Consolidated Financial Statements in Part II, Item 8, Financial Statements and Supplementary Data of the Company’s 2021 Annual Report, for more information regarding deferred acquisition costs.

The Company assumes and cedes reinsurance from and to other insurance companies in order to limit losses from large exposures.

The Company assumes and cedes reinsurance from and to other insurance companies to limit losses from large exposures.

However, if the reinsurer is unable to meet its obligations, the originating issuer of the coverage retains the liability.

9 unchanged sentences

The profit and loss with respect to obligations ceded to Athene are included in periodic net settlements pursuant to the coinsurance agreement.

To further support its obligations under the coinsurance agreement, Athene procured $ 1.2 billion in letters of credit for Jackson’s benefit and established a trust account for Jackson’s benefit, which had a book value of approximately $ 303 million at June 30, 2022.

Swiss Re Reinsurance

3 unchanged sentences

The following assets and liabilities were held in support of reserves associated with the Company’s funds withheld reinsurance agreements and were reported in the respective financial statement line items in the Condensed Consolidated Balance Sheets (in millions):

June 30, December 31,

September 30, December 31,

Debt securities, available-for-sale $ 13,919 $ 19,094

15 unchanged sentences

(1) Certain assets are reported at amortized cost while the fair value of those assets is reported in the embedded derivative in the funds withheld liability.

(2) Includes funds withheld embedded derivative asset (liability) of $ 2,508 million and $( 120 ) million at June 30, 2022 and December 31, 2021, respectively.

(2) Includes funds withheld embedded derivative asset (liability) of $ 3,332 million and $( 120 ) million at September 30, 2022 and December 31, 2021, respectively.

The sources of income related to funds withheld under reinsurance treaties reported in net investment income in the Condensed Consolidated Income Statements were as follows (in millions):

Three Months Ended June 30, Six Months Ended June 30,

Three Months Ended September 30, Nine Months Ended September 30,

2022 2021 2022 2021

3 unchanged sentences

Mortgage loans (2)

59 49 160 127

Policy loans 77 76 236 238

5 unchanged sentences

Total net investment income on funds withheld reinsurance treaties $ 313 $ 300 $ 937 $ 884

(1) Includes $( 2 ) million and $( 8 ) million for the three and six months ended June 30, 2022, respectively, and nil and $( 1 ) million for the three and six months ended June 30, 2021, respectively, related to the change in fair value for securities carried under the fair value option.

(2) Includes $( 5 ) million and $( 3 ) million for the three and six months ended June 30, 2022, respectively, and nil both for the three and six months ended June 30, 2021, respectively, related to the change in fair value for mortgage loans carried under the fair value option.

(1) Includes $( 3 ) million and $( 11 ) million for the three and nine months ended September 30, 2022, respectively, and $( 1 ) million and $( 2 ) million for the three and nine months ended September 30, 2021, respectively, related to the change in fair value for securities carried under the fair value option.

(2) Includes $( 7 ) million and $( 10 ) million for the three and nine months ended September 30, 2022, respectively, and nil both for the three and nine months ended September 30, 2021, respectively, related to the change in fair value for mortgage loans carried under the fair value option.

(3) Includes management fees.

1 unchanged sentence

The gains and losses on funds withheld reinsurance treaties as a component of net gains (losses) on derivatives and investments in the Condensed Consolidated Income Statements were as follows (in millions):

Three Months Ended June 30, Six Months Ended June 30,

Three Months Ended September 30, Nine Months Ended September 30,

2022 2021 2022 2021

10 unchanged sentences

Total net gains (losses) on derivatives and investments $ 555 $ ( 115 ) $ 2,660 $ 15

(1) Includes the Athene embedded derivative gain (loss) of $ 1,347 million and $ 2,628 million for the three and six months ended June 30, 2022, respectively, and $( 544 ) million and $ 454 million for the three and six months ended June 30, 2021, respectively.

(1) Includes the Athene embedded derivative gain (loss) of $ 824 million and $ 3,452 million for the three and nine months ended September 30, 2022, respectively, and $ 101 million and $ 555 million for the three and nine months ended September 30, 2021, respectively.

While the economic benefits of the funds withheld assets flow to the respective reinsurers, Jackson retains physical possession and legal ownership of the investments supporting the reserves.

Net investment income and net gains (losses) on derivatives and investments related to the funds withheld assets are included in periodic settlements under the reinsurance agreements which results in the flow of returns on the assets to the reinsurers.

Net gains (losses) on the funds withheld assets are increased or decreased by changes in the embedded derivative liability related to the Athene Reinsurance Agreement and also include (i) changes in the related funds withheld payable and (ii) amortization of the basis difference between book value and fair value of the investments as of the effective date of the reinsurance agreements.

Net gains (losses) on the funds withheld assets are increased or decreased by changes in the embedded derivative liability related to the Athene Reinsurance Agreement and include (i) changes in the related funds withheld payable and (ii) amortization of the basis difference between book value and fair value of the investments as of the effective date of the reinsurance agreements.

Components of the Company’s reinsurance recoverable were as follows (in millions):

June 30, December 31,

September 30, December 31,

Life $ 5,753 $ 5,829

19 unchanged sentences

This reserve is reassessed at the end of each period, taking into account changes in the in-force block.

Any resulting change in the reserve is recorded as a change in policy reserve through the consolidated income statements.

Any resulting change in the reserve is recorded as a change in policy reserve through the Condensed Consolidated Income Statements.

The following table sets forth the Company’s reserves for future policy benefits and claims payable balances (in millions):

June 30, December 31,

September 30, December 31,

Traditional life $ 4,030 $ 4,262

3 unchanged sentences

Group payout annuities 4,660 4,895

Life contingent payouts 1,160 1,152

Other 603 627

2 unchanged sentences

The following table sets forth the Company’s liabilities for other contract holder funds balances (in millions):

June 30, December 31,

September 30, December 31,

Interest-sensitive life $ 11,336 $ 11,553

4 unchanged sentences

GICs, funding agreements and FHLB advances 8,358 8,830

Other 180 189

Total $ 58,174 $ 58,726

(1) Includes the embedded derivative liabilities related to RILA of $ 4 million and $ 6 million at June 30, 2022 and December 31, 2021, respectively.

(2) Includes the embedded derivative liabilities related to fixed index annuity of $ 1,087 million and $ 1,439 million at June 30, 2022 and December 31, 2021, respectively.

(1) Includes the embedded derivative liabilities related to RILA of $ 10 million and $ 6 million at September 30, 2022 and December 31, 2021, respectively.

(2) Includes the embedded derivative liabilities related to fixed index annuity of $ 967 million and $ 1,439 million at September 30, 2022 and December 31, 2021, respectively.

For interest-sensitive life contracts, liabilities approximate the policyholder’s account value, plus the remaining balance of the fair value adjustment related to previously acquired business, which is further discussed below.

3 unchanged sentences

For payout annuities, as included in the above table, reserves are determined under the methodology for limited-payment contracts (for those with significant life contingencies) or using a constant yield method and assumptions as of the issue date for mortality, interest rates, lapse and expenses plus provisions for adverse deviations.

At June 30, 2022, the Company had interest sensitive life business with minimum guaranteed interest rates ranging from 2.5 % to 6.0 % with a 4.68 % average guaranteed rate and fixed interest rate annuities with minimum guaranteed rates ranging from 1.0 % to 5.5 % and a 1.95 % average guaranteed rate.

At September 30, 2022, the Company had interest sensitive life business with minimum guaranteed interest rates ranging from 2.5 % to 6.0 % with a 4.68 % average guaranteed rate and fixed interest rate annuities with minimum guaranteed rates ranging from 1.0 % to 5.5 % and a 1.94 % average guaranteed rate.

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 9.

Reserves for Future Policy Benefits and Claims Payable and Other Contract Holder Funds

At June 30, 2022 and December 31, 2021, approximately 92 % and 94 %, respectively, of the Company’s annuity account values correspond to crediting rates that are at the minimum guaranteed interest rates.

The following tables show the distribution of the annuity account values within the presented ranges of minimum guaranteed interest rates, excluding the reinsured business (in millions):

At both September 30, 2022 and December 31, 2021, excluding the reinsured business, approximately 94 % of the Company’s annuity account values correspond to crediting rates that are at the minimum guaranteed interest rates.

The following tables show the distribution of those annuity account values within the presented ranges of minimum guaranteed interest rates (in millions):

September 30, 2022

Guaranteed Interest Rate Account Value

21 unchanged sentences

Total $ 14,354 $ 13,333 $ 1 $ 9,456 $ 37,144

At both June 30, 2022 and December 31, 2021, approximately 80 % of the Company’s interest sensitive life business account values correspond to crediting rates that are at the minimum guaranteed interest rates.

At both September 30, 2022 and December 31, 2021, approximately 80 % of the Company’s interest sensitive life business account values correspond to crediting rates that are at the minimum guaranteed interest rates.

The following table shows the distribution of the interest sensitive life business account values within the presented ranges of minimum guaranteed interest rates, excluding the business that is subject to the previously mentioned retro treaties (in millions):

June 30, December 31,

September 30, December 31,

Guaranteed Interest Rate 2022 2021

7 unchanged sentences

Total $ 11,336 $ 11,553

The Company has established a $ 27 billion aggregate Global Medium Term Note ("MTN") program.

Jackson National Life Global Funding was formed as a statutory business trust, solely for the purpose of issuing Medium Term Note instruments to institutional investors, the proceeds of which are deposited with the Company and secured by the issuance of funding agreements.

The carrying values at June 30, 2022 and December 31, 2021 totaled $ 5.3 billion and $ 6.0 billion, respectively.

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 9.

Reserves for Future Policy Benefits and Claims Payable and Other Contract Holder Funds

The Company has established a $ 27 billion aggregate Global Medium-Term Note ("MTN") program.

The carrying values at September 30, 2022 and December 31, 2021 totaled $ 4.9 billion and $ 6.0 billion, respectively.

Those Medium-Term Note instruments issued in a foreign currency have been hedged for changes in exchange rates using cross-currency swaps.

4 unchanged sentences

Advances are in the form of long-term notes or funding agreements issued to FHLBI.

At June 30, 2022 and December 31, 2021, the Company held $ 146 million and $ 125 million of FHLBI capital stock, respectively, supporting $ 2.1 billion and $ 2.0 billion in funding agreements and long-term borrowings at June 30, 2022 and December 31, 2021, respectively.

At September 30, 2022 and December 31, 2021, the Company held $ 146 million and $ 125 million of FHLBI capital stock, respectively, supporting $ 2.3 billion and $ 2.0 billion in funding agreements and long-term borrowings at September 30, 2022 and December 31, 2021, respectively.

The Company’s institutional products business is comprised of the traditional guaranteed investment contracts, medium-term funding agreement-backed notes and funding agreements (including agreements issued in conjunction with the Company’s participation in the U.S.

Federal Home Loan Bank ("FHLB") program) described above.

Certain Nontraditional Long-Duration Contracts and Variable Annuity Guarantees

Federal Home Loan Bank program) described above.

Certain Non-traditional Long-Duration Contracts and Variable Annuity Guarantees

The Company issues variable contracts through its separate accounts for which investment income and investment gains and losses accrue directly to, and investment risk is borne by, the contract holder (“traditional variable annuities”).

7 unchanged sentences

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 10.

Certain Nontraditional Long-Duration Contracts and Variable Annuity Guarantees

At June 30, 2022 and December 31, 2021, the Company provided variable annuity contracts with guarantees, for which the net amount at risk is defined as the amount of guaranteed benefit in excess of current account value, as follows (dollars in millions):

Certain Non-traditional Long-Duration Contracts and Variable Annuity Guarantees

At September 30, 2022 and December 31, 2021, the Company provided variable annuity contracts with guarantees, for which the net amount at risk is defined as the amount of guaranteed benefit in excess of current account value, as follows (dollars in millions):

Minimum Return Account

Value Net Amount at Risk Weighted Average Attained Age Average Period until Expected Annuitization

June 30, 2022

September 30, 2022

Return of net deposits plus a minimum return

36 unchanged sentences

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 10.

Certain Nontraditional Long-Duration Contracts and Variable Annuity Guarantees

Amounts shown as GMWB above include a ‘not-for-life’ component up to the point at which the guaranteed withdrawal benefit is exhausted, after which benefits paid are considered to be ‘for-life’ benefits.

Certain Non-traditional Long-Duration Contracts and Variable Annuity Guarantees

The liability related to this ‘not-for-life’ portion is valued as an embedded derivative, while the ‘for-life’ benefits are valued as an insurance liability (see below).

1 unchanged sentence

Account balances of contracts with guarantees were invested in variable separate accounts as follows (in millions):

June 30, December 31,

September 30, December 31,

Equity $ 110,764 $ 154,368

4 unchanged sentences

GMDB liabilities reflected in the general account were as follows (in millions):

Six Months Ended June 30,

Balance as of beginning of period $ 1,370 $ 1,418

Nine Months Ended September 30,

Balance as of beginning of year $ 1,370 $ 1,418

Incurred guaranteed benefits 1,147 173

3 unchanged sentences

The Company regularly evaluates estimates used and adjusts the liability balance through the Condensed Consolidated Income Statements, within death, other policy benefits and change in policy reserves, if actual experience or other evidence suggests that earlier assumptions should be revised.

The following assumptions and methodology were used to determine the GMDB liability at both June 30, 2022 and December 31, 2021 (except where otherwise noted):

The following assumptions and methodology were used to determine the GMDB liability at both September 30, 2022 and December 31, 2021 (except where otherwise noted):

• Use of a series of stochastic investment performance scenarios, based on historical average market volatility.

4 unchanged sentences

7.15 % on 2020 and later issues, 7.4 % on 2013 through 2019 issues, 8.4 % on 2012 and prior issues.

Most GMWB reserves are considered to be derivatives under current accounting guidance and are recognized at fair value, as previously defined, with the change in fair value reported in net income (as net gains (losses) on derivatives and investments).

Most GMWB reserves are considered derivatives under current accounting guidance and are recognized at fair value, as previously defined, with the change in fair value reported in net income (as net gains (losses) on derivatives and investments).

The fair value of these liabilities is determined using stochastic modeling and inputs as further described in Note 6.

The fair valued GMWB had a reserve liability of $ 601 million and $ 2,626 million at June 30, 2022 and December 31, 2021, respectively, and was reported in reserves for future policy benefits and claims payable.

The fair valued GMWB had a reserve asset of $ 484 million and reserve liability of $ 2,626 million at September 30, 2022 and December 31, 2021, respectively, and was reported in reserves for future policy benefits and claims payable.

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 10.

Certain Nontraditional Long-Duration Contracts and Variable Annuity Guarantees

Certain Non-traditional Long-Duration Contracts and Variable Annuity Guarantees

The Company has also issued certain GMWB products that guarantee payments over a lifetime.

Reserves for the portion of these benefits after the point where the guaranteed withdrawal balance is exhausted are calculated using assumptions and methodology similar to the GMDB liability.

At June 30, 2022 and December 31, 2021, these GMWB reserves totaled $ 306 million and $ 196 million, respectively, and were reported in reserves for future policy benefits and claims payable.

At September 30, 2022 and December 31, 2021, these GMWB reserves totaled $ 359 million and $ 196 million, respectively, and were reported in reserves for future policy benefits and claims payable.

GMAB benefits were offered on some variable annuity products.

2 unchanged sentences

The assumptions used for calculating the direct GMIB liability are consistent with those used for calculating the GMDB liability.

At June 30, 2022 and December 31, 2021, GMIB reserves before reinsurance totaled $ 132 million and $ 78 million, respectively.

At September 30, 2022 and December 31, 2021, GMIB reserves before reinsurance totaled $ 153 million and $ 78 million, respectively.

Other Liabilities – Insurance and Annuitization Benefits

1 unchanged sentence

Liabilities for these benefits, as established according to the methodologies described below, are as follows:

June 30, 2022 December 31, 2021

September 30, 2022 December 31, 2021

Benefit Type Liability

9 unchanged sentences

• Other experience assumptions similar to those used in amortization of deferred acquisition costs.

• Discount rates equal to credited interest rates, approximately 3.0 % to 5.5 % at both June 30, 2022 and December 31, 2021.

• Discount rates equal to credited interest rates, approximately 3.0 % to 5.3 % at September 30, 2022 and 3.0 % to 5.5 % at December 31, 2021.

The Company also has a small, closed block of two-tier annuities, where different crediting rates are used for annuitization and surrender benefit calculations.

A liability is established to cover future annuitization benefits in excess of surrender values and was immaterial to the Condensed Consolidated Financial Statements at both June 30, 2022 and December 31, 2021, respectively.

A liability is established to cover future annuitization benefits in excess of surrender values and was immaterial to the Condensed Consolidated Financial Statements at both September 30, 2022 and December 31, 2021, respectively.

The Company also offers an optional lifetime income rider with certain of its fixed index annuities.

The liability established for this rider before reinsurance was $ 49 million and $ 37 million at June 30, 2022 and December 31, 2021, respectively.

The liability established for this rider before reinsurance was $ 53 million and $ 37 million at September 30, 2022 and December 31, 2021, respectively.

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 11.

1 unchanged sentence

Long-Term Debt

Liabilities for the Company’s debt are primarily carried at an amount equal to the unpaid principal balance.

Liabilities for the Company’s debt are primarily carried at an amount equal to the principal balance net of any unamortized original issuance discount or premium.

Original issuance discount or premium and any debt issue costs, if applicable, are recognized as a component of interest expense over the period the debt is expected to be outstanding.

The aggregate carrying value of long-term debt were as follows (in millions):

June 30, December 31,

September 30, December 31,

Long-Term Debt

8 unchanged sentences

Total long-term debt $ 2,634 $ 2,649

The following table presents the contractual maturities of the Company's long-term debt as of June 30, 2022 (in millions):

The following table presents the contractual maturities of the Company's long-term debt as of September 30, 2022 (in millions):

Calendar Year

1 unchanged sentence

Long-term debt $ 597 $ — $ — $ — $ 2,037 $ 2,634

On June 8, 2022, the Company issued $ 750 million aggregate principal amount of its senior unsecured notes, consisting of $ 400 million aggregate principal amount of 5.170 % Senior Notes due June 8, 2027 (the “2027 Notes”) and $ 350 million aggregate principal amount of 5.670 % Senior Notes due June 8, 2032 (the “2032 Notes”).

The net proceeds of the 2027 Notes and 2032 Notes were used, together with cash on hand, to repay the Company’s $ 750 million aggregate principal senior unsecured amount term loan due February 2023 (the “2023 DDTL Facility”).

On November 23, 2021, the Company issued $ 1.6 billion aggregate principal amount of its senior unsecured notes consisting of $ 600 million aggregate principal amount of 1.1 % Senior Notes due November 22, 2023 (the “2023 Senior Notes”), $ 500 million aggregate principal amount of 3.1 % Senior Notes due November 23, 2031 (the “2031 Senior Notes”) and $ 500 million aggregate principal amount of 4.0 % Senior Notes due November 23, 2051 (the “2051 Senior Notes” and, together with the 2023 Senior Notes and the 2031 Senior Notes, the “Senior Notes”).

The proceeds of the Senior Notes were used, together with cash on hand, to repay the Company’s $ 1.6 billion aggregate principal amount senior unsecured term loan due May 2022 (the “2022 DDTL Facility”), as described below.

On June 8, 2022, the Company issued $ 750 million aggregate principal amount of its senior unsecured notes, consisting of $ 400 million aggregate principal amount of 5.170 % Senior Notes due June 8, 2027 and $ 350 million aggregate principal amount of 5.670 % Senior Notes due June 8, 2032.

The net proceeds of these notes were used, together with cash on hand, to repay the Company’s $ 750 million aggregate principal senior unsecured amount term loan due February 2023 (the “2023 DDTL Facility”).

On November 23, 2021, the Company issued $ 1.6 billion aggregate principal amount of its senior unsecured notes consisting of $ 600 million aggregate principal amount of 1.125 % Senior Notes due November 22, 2023, $ 500 million aggregate principal amount of 3.125 % Senior Notes due November 23, 2031 and $ 500 million aggregate principal amount of 4.000 % Senior Notes due November 23, 2051.

The proceeds of these notes were used, together with cash on hand, to repay the Company’s $ 1.6 billion aggregate principal amount senior unsecured term loan due May 2022 (the “2022 DDTL Facility”), as described below.

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 11.

1 unchanged sentence

On February 22, 2021, the Company entered into loan facilities including a $ 1.0 billion revolving credit facility (the “Revolving Facility”), a $ 1.7 billion 2022 DDTL Facility and a $ 1.0 billion 2023 DDTL Facility (the “Credit Facilities”) with a syndicate of banks.

The Revolving Facility provides liquidity backstop.

The Revolving Facility provides a liquidity backstop.

On September 10, 2021, the Company borrowed an aggregate principal amount of $ 2.4 billion under the term loan facilities as follows:

1 unchanged sentence

The proceeds of those borrowings were used for general corporate purposes, including liquidity at the holding company and capitalization of the insurance subsidiaries.

Under the terms of the credit agreement for the DDTL Facilities, subject to certain exceptions, 100% of the net cash proceeds from any debt issuance, preferred equity issuance or hybrid instrument issuance by the Company or its subsidiaries is required to be applied (i) first to prepay the 2022 DDTL Facility and (ii) thereafter, to prepay the 2023 DDTL Facility.

Under the terms of the credit agreement for the DDTL Facilities, subject to certain exceptions, 100% of the net cash proceeds from any debt issuance, preferred equity issuance or hybrid instrument issuance by the Company or its subsidiaries was required to be applied (i) first to prepay the 2022 DDTL Facility and (ii) thereafter, to prepay the 2023 DDTL Facility.

As noted above, both term loans have been retired through the application of the proceeds from senior unsecured notes and cash on hand.

1 unchanged sentence

The Company, through its subsidiary, Jackson, entered into an advance program with the FHLBI in which interest rates were either fixed or variable based on the FHLBI cost of funds or market rates.

Advances of nil were outstanding at both June 30, 2022 and December 31, 2021, respectively, and were recorded in other liabilities.

Advances of nil were outstanding at both September 30, 2022 and December 31, 2021 and were recorded in other liabilities.

On August 16, 2022, President Biden signed the Inflation Reduction Act of 2022 (“IRA”) into law.

The IRA includes a new Federal alternative minimum tax (“AMT”), effective in 2023, that is based on 15% of an applicable corporation’s adjusted financial statement income (“AFSI”).

A corporation will be subject to the AMT if its average pre-tax AFSI over three prior years (starting with 2020-2022) is greater than $1 billion (an “applicable corporation”).

Upon becoming an applicable corporation, an entity will remain so for all future years, except under limited circumstances.

The corporation’s AMT liability is payable to the extent the AMT liability exceeds regular corporate income tax.

However, any AMT paid would be indefinitely available as a credit carryover that could reduce future regular corporate income tax in excess of AMT.

We believe that we will be an applicable corporation starting in 2023.

That belief is based on interpretations and assumptions we have made regarding the AMT provisions of the IRA, which may change once regulatory guidance is issued.

As of September 30, 2022, we have not recorded any provision for the AMT.

Department of the Treasury is expected to issue regulatory guidance throughout 2023.

The IRA also creates a 1% excise tax on stock buybacks of publicly-traded U.S.

corporations.

Starting in 2023, such excise tax generally applies if a company repurchases in excess of $1 million worth of its stock in any given calendar year.

The impact of this provision will be dependent on the extent of share repurchases made in future periods.

Any excise tax incurred on corporate stock repurchases will generally be recognized as part of the cost basis of the treasury stock acquired and not reported as income tax expense.

The Company uses the estimated annual effective tax rate (“ETR”) method in computing the interim tax provision.

3 unchanged sentences

The estimated annual ETR is revised, as necessary, at the end of successive interim reporting periods.

The Company’s effective income tax rate was 19.8 % and 17.5 % for the three and six months ended June 30, 2022, compared with 9.2 % and 18.2 % for the same periods in 2021.

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 13.

The Company’s effective income tax rate was 27.4 % and 20.0 % for the three and nine months ended September 30, 2022, compared with ( 8.6 )% and 16.5 % for the same periods in 2021.

The ETR differs from the statutory rate of 21% primarily due to the dividends received deduction and utilization of foreign tax credits.

The change in the ETR for the three and six months ended June 30, 2022 was due to the relationship of taxable income to consolidated pre-tax income.

The ETR differs for the six months ended June 30, 2022 from the full year-ended December 31, 2021 ETR of 15.9 % due to the relationship of taxable income to consolidated pre-tax income, the provision-to-return adjustments recorded in 2021 and the net interest related to income taxes recorded in 2021.

The change in the ETR for the three and nine months ended September 30, 2022 was due to the relationship of taxable income to consolidated pre-tax income and the impact of tax adjustments related to prior year returns recorded in the current quarter compared to the impact from tax adjustments related to prior year returns recorded in the third quarter of 2021.

The ETR differs for the nine months ended September 30, 2022 from the full year-ended December 31, 2021 ETR of 15.9 % due to the relationship of taxable income to consolidated pre-tax income, including the tax expense from tax adjustments related to prior year returns recorded in the current quarter and the net interest related to income taxes recorded in 2021.

The Company is required to evaluate the recoverability of its deferred tax assets and establish a valuation allowance, if necessary, to reduce its deferred tax asset to an amount that is more likely than not to be realizable.

6 unchanged sentences

and any tax planning strategies the Company would employ to avoid a tax benefit from expiring unused.

For the three month period ended June 30, 2022, recent changes in market conditions, including rising interest rates, impacted the unrealized tax gains and losses in the available for sale securities portfolio resulting in deferred tax assets related to net unrealized tax capital losses.

For the nine months ended September 30, 2022, recent changes in market conditions, including rising interest rates, impacted the unrealized tax gains and losses in the available for sale securities portfolio resulting in deferred tax assets related to net unrealized tax capital losses.

The deferred tax asset relates to the unrealized losses for which the carryforward period has not yet begun, and as such, when assessing its recoverability, we consider our ability and intent to hold the underlying securities to recovery.

As of June 30, 2022, based on all available evidence, we concluded that a valuation allowance should be established on a portion of the deferred tax asset related to unrealized losses that are not more-likely-than-not to be realized.

For the three months ending June 30, 2022, the Company established $ 320 million of valuation allowance associated with the unrealized tax losses in the companies’ available for sale securities portfolio.

As of September 30, 2022, based on all available evidence, we concluded that a valuation allowance should be established on a portion of the deferred tax asset related to unrealized losses that are not more-likely-than-not to be realized.

For the three months ending September 30, 2022, the Company recorded an increase of $ 179 million to the valuation allowance associated with the unrealized tax losses in the companies’ available for sale securities portfolio.

For the nine months ended September 30, 2022, the company has recorded a total valuation allowance for $ 499 million associated with the unrealized tax losses in the companies' available for sale securities portfolio.

All of the valuation allowance establishment was allocated to other comprehensive income.

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 14.

Commitments and Contingencies

The Company and its subsidiaries are involved in litigation arising in the ordinary course of business.

2 unchanged sentences

The Company accrues for legal contingencies once the contingency is deemed to be probable and reasonably estimable.

At June 30, 2022, the Company had unfunded commitments related to its investments in limited partnerships and limited liability companies totaling $ 1,676 million.

At June 30, 2022, unfunded commitments related to fixed-rate mortgage loans and other debt securities totaled $ 1,596 million.

At September 30, 2022, the Company had unfunded commitments related to its investments in limited partnerships and limited liability companies totaling $ 1,577 million.

At September 30, 2022, unfunded commitments related to fixed-rate mortgage loans and other debt securities totaled $ 1,401 million.

Other Related Party Transactions

The Company's investment management operation, PPM, provides investment services to certain Prudential affiliated entities.

The Company recognized $ 9 million and $ 9 million of revenue during the three months ended June 30, 2022, and 2021, and $ 18 million and $ 19 million of revenue during the six months ended June 30, 2022 and 2021, associated with these investment services.

The Company recognized $ 7 million and $ 9 million of revenue during the three months ended September 30, 2022, and 2021, and $ 25 million and $ 28 million of revenue during the nine months ended September 30, 2022 and 2021, associated with these investment services.

This revenue was included in fee income in the accompanying Condensed Consolidated Income Statements.

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 15.

Other Related Party Transactions

The investments in the segregated account related to the coinsurance agreement with Athene are subject to an investment management agreement between Jackson and Apollo Insurance Solutions Group LP (“Apollo”), which merged with Athene in 2022.

Apollo management fees, which are calculated and paid monthly in arrears, are paid directly from the funds withheld account, administered by Athene.

These payments were $ 21 million and $ 26 million during the three months ended June 30, 2022, and 2021, and $ 43 million and $ 54 million during the six months ended June 30, 2022 and 2021, associated with these services.

These payments were $ 21 million and $ 26 million during the three months ended September 30, 2022, and 2021, and $ 64 million and $ 80 million during the nine months ended September 30, 2022 and 2021, associated with these services.

Operating Costs and Other Expenses

The following table is a summary of the Company’s operating costs and other expenses (in millions):

Three Months Ended June 30, Six Months Ended June 30,

Three Months Ended September 30, Nine Months Ended September 30,

2022 2021 2022 2021

1 unchanged sentence

Other commission expenses 195 263 664 793

Sub-advisor expenses 80 101 252 289

General and administrative expenses 220 241 614 769

1 unchanged sentence

Total operating costs and other expenses $ 592 $ 699 $ 1,801 $ 2,090

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 17.

Accumulated Other Comprehensive Income (Loss)

The following table represents changes in the balance of AOCI, net of income tax, related to unrealized investment gains (losses) (in millions):

Three Months Ended June 30, Six Months Ended June 30,

Three Months Ended September 30, Nine Months Ended September 30,

2022 2021 2022 2021

9 unchanged sentences

$ ( 5,718 ) $ 2,045 $ ( 5,718 ) $ 2,045

(1) Includes $( 1,677 ) million, $ 287 million and $ 632 million related to the investments held within the funds withheld account related to the Athene Reinsurance Transaction as of June 30, 2022, December 31, 2021 and June 30, 2021, respectively.

(1) Includes $( 2,316 ) million, $ 287 million and $ 481 million related to the investments held within the funds withheld account related to the Athene Reinsurance Transaction as of September 30, 2022, December 31, 2021 and September 30, 2021, respectively.

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 17.

Accumulated Other Comprehensive Income (Loss)

The following table represents amounts reclassified out of AOCI (in millions):

2 unchanged sentences

Consolidated Income Statement

Three Months Ended June 30,

Three Months Ended September 30,

Net unrealized investment gain (loss):

9 unchanged sentences

Consolidated Income Statement

Six Months Ended June 30,

Nine Months Ended September 30,

Net unrealized investment gain (loss):

6 unchanged sentences

Reclassifications, net of income taxes $ ( 59 ) $ ( 223 )

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 18.

The Company had two classes of common stock:

3 unchanged sentences

Each share of Class B Common Stock was entitled to one-tenth of one vote per share.

Except for voting rights, the Company’s Class A Common Stock and Class B Common Stock had the same dividend rights, were equal in all respects, and were otherwise treated as if they were one class of shares.

On June 9, 2022, our Second Amended and Restated Certificate of Incorporation was further amended and restated, following shareholder approval, to eliminate the Class B Common Stock.

At June 30, 2022 and December 31, 2021, the Company was authorized to issue up to 900 million shares of common stock (formerly known as the Class A Common Stock).

At June 30, 2022 and December 31, 2021, the Company was authorized to issue nil and 100 million shares of Class B Common Stock, respectively.

Except for voting rights, the Company’s Class A Common Stock and Class B Common Stock had the same dividend rights, were equal in all other respects, and were otherwise treated as if they were one class of shares.

On June 9, 2022, our shareholders approved the Third Amended and Restated Certificate of Incorporation, which amended and restated the Second Amended and Restated Certificate of Incorporation to eliminate the Class B Common Stock.

At September 30, 2022 and December 31, 2021, the Company was authorized to issue up to 900 million shares of common stock (formerly known as the Class A Common Stock).

At September 30, 2022 and December 31, 2021, the Company was authorized to issue nil and 100 million shares of Class B Common Stock, respectively.

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 18.

Share Repurchase Program

On February 28, 2022, our Board of Directors authorized an increase of $ 300 million in our existing authorization to repurchase shares of our outstanding Class A Common Stock as part of the Company's share repurchase program.

As of August 3, 2022, the Company had remaining authority to purchase $ 183 million of its common shares.

As of November 3, 2022, the Company had remaining authority to purchase $ 119 million of its common shares.

The Company expects to repurchase shares from time to time in the open market or in privately negotiated transactions.

10 unchanged sentences

2022 (April 1- June 30) 1,870,854 66 35.15

2022 (July 1- September 30) 1,200,000 39 32.75

2022 (October 1 - November 3) 792,105 25 31.58

Total 2022 7,296,569 $ 270 $ 37.04

5 unchanged sentences

Shares repurchased under repurchase program — ( 6,504,464 ) ( 6,504,464 )

Shares at June 30, 2022 94,473,126 ( 9,608,399 ) 84,864,727

Shares at September 30, 2022 94,474,018 ( 10,807,076 ) 83,666,942

(1) Represents net shares issued from treasury stock pursuant to the Company’s share-based compensation programs.

3 unchanged sentences

On February 1, 2022, Athene converted the remaining 638,861 shares of its Class B Common Stock to Class A Common Stock on a one -for-one basis.

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 18.

On March 12, 2022, we repurchased 750,000 shares of our Class A Common Stock from Athene.

3 unchanged sentences

Therefore, there can be no assurance that we will pay any cash dividends to holders of our common stock or as to the amount of any such cash dividend.

The following table presents declaration date, record date, payment date and dividends paid on per JFI’s Class A and Class B common shares:

Declaration Date Record Date Payment Date Dividends Paid Per Share

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 19.

Earnings Per Share

The following table presents declaration date, record date, payment date and dividends paid on per JFI’s common shares:

Quarter Ended Declaration Date Record Date Payment Date Dividends Paid Per Share

03/31/2022 February 28, 2022 March 14, 2022 March 23, 2022 $ 0.55

06/30/2022 May 9, 2022 June 2, 2022 June 16, 2022 $ 0.55

09/30/2022 August 8, 2022 September 1, 2022 September 15, 2022 $ 0.55

Earnings Per Share

4 unchanged sentences

shareholders, by the weighted-average number of shares of Class A Common Stock and Class B Common Stock outstanding for the period, plus shares representing the dilutive effect of share-based awards.

For the three and six months ended June 30, 2021, the Company did not have any outstanding share-based awards involving the issuance of the Company’s equity and, therefore, no impact to the diluted earnings per share calculation.

For the three and nine months ended September 30, 2021, the Company did not have any outstanding share-based awards involving the issuance of the Company’s equity and, therefore, no impact to the diluted earnings per share calculation.

The Company grants share-based awards subject to vesting provisions as provided in the Company's 2021 Omnibus Incentive Plan, which have a dilutive effect.

1 unchanged sentence

The following table sets forth the calculation of earnings per common share:

Three Months Ended June 30, Six Months Ended June 30,

Three Months Ended September 30, Nine Months Ended September 30,

2022 2021 2022 2021

8 unchanged sentences

Diluted $ 16.83 $ 2.18 $ 71.73 $ 27.50

Revision and Reclassifications of Prior Period Financial Statements

The Company identified errors related to the classification of certain balances and amounts in line items of consolidated balance sheets, income statements, and statements of cash flows of its previously issued consolidated financial statements.

These errors consist of balances and amounts related to deferred sales inducement assets, liabilities for certain life-contingent annuities, sub-advisor fee expenses, and other operating expenses and do not impact previously reported net income, total equity, or net cash flows.

Management evaluated these errors and the impact to previously issued financial statements based upon SEC Staff Accounting Bulletin No.

99, Materiality, which has since been codified in Accounting Standards Codification (“ASC”) 250, Accounting Changes and Error Corrections.

Based on this evaluation, management has concluded that the adjustments and impact of these errors are not material to any previously issued quarterly or annual financial statements.

However, to improve the consistency and comparability of the financial statements, management has revised previously reported financial statement line items and related disclosures in this quarterly report.

In addition, certain other immaterial amounts in prior period financial statements have been reclassified to conform to the current period presentation.

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 20.

Revision and Reclassifications of Prior Period Financial Statements

The following tables present condensed consolidated balance sheet and statement of income line items affected by the revisions and reclassifications of previously reported financial statements, detailing amounts previously reported, the impact upon those line items due to revisions and reclassifications and amounts as currently revised within the financial statements.

For the nine months ended September 30, 2021 the reclassification also impacted the condensed consolidated statement of cash flows in the amount of $ 42 million, which increased financing cash flows offset by a decrease in operating cash flows.

In addition, there were revisions reflected in our disclosures throughout this Form 10-Q.

Condensed Consolidated Balance Sheets (in millions) As Previously Reported Impact of Revisions

and Reclassifications As Revised

12/31/21 12/31/21 12/31/21

Other assets $ 853 $ 75 $ 928

Total assets 375,484 75 375,559

Reserves for future policy benefits and claims payable 17,629 1,038 18,667

Other contract holder funds 59,689 ( 963 ) 58,726

Notes issued by consolidated variable interest entities, at fair value under fair value option — 1,404 1,404

Other liabilities 3,944 ( 1,404 ) 2,540

Total liabilities 364,410 75 364,485

Total liabilities and equity $ 375,484 $ 75 $ 375,559

Condensed Consolidated Income Statements

(in millions) As Previously Reported Impact of Revisions and Reclassifications As Revised

Three Months Ended Nine Months Ended Three Months Ended Nine Months Ended Three Months Ended Nine Months Ended

9/30/21 9/30/21 9/30/21 9/30/21 9/30/21 9/30/21

Fee income $ 1,962 $ 5,674 $ 101 $ 289 $ 2,063 $ 5,963

Premium 35 100 2 15 37 115

Net investment income 852 2,576 ( 15 ) ( 8 ) 837 2,568

Total revenues 1,487 7,226 88 296 1,575 7,522

Benefits and Expenses

Death, other policy benefits and change in policy reserves, net of deferrals 394 887 11 46 405 933

Interest credited on other contract holder funds, net of deferrals and amortization 217 657 ( 8 ) ( 27 ) 209 630

Operating costs and other expenses, net of deferrals 614 1,812 85 278 699 2,090

Amortization of deferred acquisition costs 4 552 — ( 1 ) 4 551

Total benefits and expenses 1,235 3,927 88 296 1,323 4,223

Net income (loss) $ 268 $ 2,784 $ — $ — $ 268 $ 2,784

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 21.

Subsequent Events

2 unchanged sentences

Dividends Declared to Shareholders

On August 8, 2022, our Board of Directors approved a third quarter cash dividend on JFI's Common Stock of $ 0.55 per share, payable on September 15, 2022 to shareholders of record on September 1, 2022.

On November 7, 2022, our Board of Directors approved a fourth quarter cash dividend on JFI's common stock, $ 0.55 per share, payable on December 15, 2022, to shareholders of record on December 1, 2022.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements