What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2024-05-08 compared with 2023-11-08 · 464 added, 888 removed, 2109 unchanged (39% of the section changed)

3 unchanged sentences

(in millions, except share data)

September 30, December 31,

2023 2022 (1)

March 31, December 31,

Assets (Unaudited)

Debt Securities, available-for-sale, net of allowance for credit losses of $ 26 and $ 23 at September 30, 2023 and December 31, 2022, respectively (amortized cost:

Debt Securities, available-for-sale, net of allowance for credit losses of $ 20 and $ 21 at March 31, 2024 and December 31, 2023, respectively (amortized cost:

2024 $ 44,796 ;

4 unchanged sentences

Equity securities, at fair value 222 394

Mortgage loans, net of allowance for credit losses of $ 200 and $ 95 at September 30, 2023 and December 31, 2022, respectively

10,136 10,967

Mortgage loans, net of allowance for credit losses of $ 162 and $ 165 at March 31, 2024 and December 31, 2023, respectively

Mortgage loans, at fair value under fair value option 455 481

Policy loans (including $ 3,432 and $ 3,419 at fair value under the fair value option at September 30, 2023 and December 31, 2022, respectively)

Policy loans (including $ 3,448 and $ 3,457 at fair value under the fair value option at March 31, 2024 and December 31, 2023, respectively)

Freestanding derivative instruments 213 390

4 unchanged sentences

Deferred acquisition costs 12,173 12,302

Reinsurance recoverable, net of allowance for credit losses of $ 33 and $ 15 at September 30, 2023 and December 31, 2022, respectively

Reinsurance recoverable, net of allowance for credit losses of $ 30 and $ 29 at March 31, 2024 and December 31, 2023, respectively

24,558 25,422

9 unchanged sentences

Market risk benefit liabilities, at fair value 3,843 4,785

Funds withheld payable under reinsurance treaties (including $ 3,599 and $ 3,582 at fair value under the fair value option at September 30, 2023 and December 31, 2022, respectively)

Funds withheld payable under reinsurance treaties (including $ 3,618 and $ 3,626 at fair value under the fair value option at March 31, 2024 and December 31, 2023, respectively)

19,244 19,952

10 unchanged sentences

24,000 shares authorized;

shares issued:

2023 - 22,000 ;

22,000 shares issued and outstanding at March 31, 2024 and December 31, 2023;

liquidation preference $ 25,000 per share (See Note 19)

Common stock;

1,000,000,000 shares authorized, $ 0.01 par value per share and 80,051,900 and 82,690,098 shares issued and outstanding at September 30, 2023 and December 31, 2022, respectively (See Note 20)

1,000,000,000 shares authorized, $ 0.01 par value per share and 76,621,374 and 78,660,221 shares issued and outstanding at March 31, 2024 and December 31, 2023, respectively (See Note 19)

Additional paid-in capital 6,005 6,005

Treasury stock, at cost;

14,429,106 and 11,784,813 shares at September 30, 2023 and December 31, 2022, respectively

17,859,632 and 15,820,785 shares at March 31, 2024 and December 31, 2023, respectively

( 713 ) ( 599 )

Accumulated other comprehensive income (loss), net of tax expense (benefit) of $( 354 ) and $( 66 ) at September 30, 2023 and December 31, 2022, respectively

Accumulated other comprehensive income (loss), net of tax expense (benefit) of $( 274 ) and $( 178 ) at March 31, 2024 and December 31, 2023, respectively

( 3,423 ) ( 2,808 )

4 unchanged sentences

Total liabilities and equity $ 340,280 $ 330,255

(1) Recast for the adoption of ASU 2018-12.

See Notes 1 and 2 to the Condensed Consolidated Financial Statements .

See Notes to Condensed Consolidated Financial Statements.

2 unchanged sentences

(Unaudited, in millions, except per share data)

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

2023 2022 (1)

Three Months Ended March 31,

Fee income $ 1,998 $ 1,888

31 unchanged sentences

Diluted $ 9.94 $ ( 18.11 )

(1) Recast for the adoption of ASU 2018-12.

See Notes 1 and 2 to the Condensed Consolidated Financial Statements .

See Notes to Condensed Consolidated Financial Statements.

2 unchanged sentences

(Unaudited, in millions)

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

2023 2022 (1)

Three Months Ended March 31,

Net income (loss) $ 802 $ ( 1,496 )

1 unchanged sentence

Change in unrealized gains (losses) on securities with no credit impairment, net of tax expense (benefit) of:

$( 62 ) and $( 347 ), for the three months ended September 30, 2023 and 2022, respectively, and $( 4 ) and $( 1,514 ) for the nine months ended September 30, 2023 and 2022, respectively.

( 1,223 ) ( 2,069 ) ( 787 ) ( 7,783 )

$( 3 ) and $ 92 , for the three months ended March 31, 2024 and 2023, respectively.

Change in unrealized gains (losses) on securities with credit impairment, net of tax expense (benefit) of:

$( 4 ) and $( 5 ) million for the three months ended September 30, 2023 and 2022, respectively, and $( 7 ) and $ 1 for the nine months ended September 30, 2023 and 2022, respectively.

( 15 ) ( 18 ) ( 24 ) 4

Change in current discount rate related to reserve for future policy benefits, net of tax expense (benefit) of $ 55 and $ 99 for the three months ended September 30, 2023 and 2022, respectively, and $ 44 and $ 393 for the nine months ended September 30, 2023 and 2022, respectively.

199 361 160 1,423

Change in non-performance risk on market risk benefits, net of tax expense (benefit) of $( 216 ) and $ 120 for the three months ended September 30, 2023 and 2022, respectively, and $( 321 ) and $ 542 for the nine months ended September 30, 2023 and 2022, respectively.

( 783 ) 432 ( 1,158 ) 1,963

nil and $( 2 ) million for the three months ended March 31, 2024 and 2023, respectively.

Change in current discount rate related to reserve for future policy benefits, net of tax expense (benefit) of $ 18 and $( 32 ) for the three months ended March 31, 2024 and 2023, respectively.

Change in non-performance risk on market risk benefits, net of tax expense (benefit) of $( 111 ) and $ 60 for the three months ended March 31, 2024 and 2023, respectively.

Total other comprehensive income (loss) ( 615 ) 1,070

3 unchanged sentences

$ 180 $ ( 427 )

(1) Recast for the adoption of ASU 2018-12.

See Notes 1 and 2 to the Condensed Consolidated Financial Statements .

See Notes to Condensed Consolidated Financial Statements.

5 unchanged sentences

Stock Stock Capital at Cost Income Earnings Equity Interests Equity

Balances as of June 30, 2023 $ 533 $ 1 $ 5,997 $ ( 466 ) $ ( 3,365 ) $ 5,952 $ 8,652 $ 771 $ 9,423

Net income (loss) — — — — — 2,773 2,773 17 2,790

Other comprehensive income (loss) — — — — ( 1,822 ) — ( 1,822 ) — ( 1,822 )

Change in equity of noncontrolling interests — — — — .

— — ( 13 ) ( 13 )

Dividends on preferred stock — — — — — ( 11 ) ( 11 ) — ( 11 )

Dividends on common stock — — — — — ( 52 ) ( 52 ) — ( 52 )

Purchase of treasury stock — — — ( 72 ) — — ( 72 ) — ( 72 )

Share based compensation — — 10 1 — ( 1 ) 10 — 10

Balances as of September 30, 2023 $ 533 $ 1 $ 6,007 $ ( 537 ) $ ( 5,187 ) $ 8,661 $ 9,478 $ 775 $ 10,253

Additional Treasury Other Total Non-

Preferred Common Paid-In Stock Comprehensive Retained Shareholders' Controlling Total

Stock Stock Capital at Cost Income Earnings Equity Interests Equity

Balances as of June 30, 2022 (1)

$ — $ 1 $ 6,020 $ ( 371 ) $ ( 1,739 ) $ 5,795 $ 9,706 $ 747 $ 10,453

Net income (loss) — — — — — 1,879 1,879 ( 11 ) 1,868

Other comprehensive income (loss) — — — — ( 1,294 ) — ( 1,294 ) — ( 1,294 )

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

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

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

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

Balances as of September 30, 2022 (1)

$ — $ 1 $ 6,036 $ ( 410 ) $ ( 3,033 ) $ 7,625 $ 10,219 $ 729 $ 10,948

Additional Treasury Other Total Non-

Preferred Common Paid-In Stock Comprehensive Retained Shareholders' Controlling Total

Stock Stock Capital at Cost Income Earnings Equity Interests Equity

Balances as of December 31, 2023 $ 533 $ 1 $ 6,005 $ ( 599 ) $ ( 2,808 ) $ 7,038 $ 10,170 $ 164 $ 10,334

$ — $ 1 $ 6,063 $ ( 443 ) $ ( 3,378 ) $ 6,403 $ 8,646 $ 732 $ 9,378

Net income (loss) — — — — — 795 795 7 802

4 unchanged sentences

Purchase of treasury stock — — — ( 120 ) — — ( 120 ) — ( 120 )

Issuance of preferred stock 533 — — — — — 533 — 533

Share based compensation — — — 6 — — 6 — 6

Balances as of September 30, 2023 $ 533 $ 1 $ 6,007 $ ( 537 ) $ ( 5,187 ) $ 8,661 $ 9,478 $ 775 $ 10,253

Balances as of March 31, 2024 $ 533 $ 1 $ 6,005 $ ( 713 ) $ ( 3,423 ) $ 7,766 $ 10,169 $ 187 $ 10,356

Additional Treasury Other Total Non-

2 unchanged sentences

Balances as of December 31, 2022 $ — $ 1 $ 6,063 $ ( 443 ) $ ( 3,378 ) $ 6,403 $ 8,646 $ 732 $ 9,378

$ — $ 1 $ 6,051 $ ( 211 ) $ 1,360 $ 440 $ 7,641 $ 680 $ 8,321

Net income (loss) — — — — — ( 1,497 ) ( 1,497 ) 1 ( 1,496 )

3 unchanged sentences

Purchase of treasury stock — — — ( 70 ) — — ( 70 ) — ( 70 )

Issuance of preferred stock 533 — — — — — 533 — 533

Share based compensation — — 7 3 — — 10 — 10

Balances as of September 30, 2022 (1)

$ — $ 1 $ 6,036 $ ( 410 ) $ ( 3,033 ) $ 7,625 $ 10,219 $ 729 $ 10,948

(1) Recast for the adoption of ASU 2018-12.

See Notes 1 and 2 to the Condensed Consolidated Financial Statements .

Balances as of March 31, 2023 $ 533 $ 1 $ 6,070 $ ( 510 ) $ ( 2,308 ) $ 4,852 $ 8,638 $ 829 $ 9,467

See Notes to Condensed Consolidated Financial Statements.

2 unchanged sentences

(Unaudited, in millions)

Nine Months Ended September 30,

2023 2022 (1)

Three Months Ended March 31,

Cash flows from operating activities:

14 unchanged sentences

Funds withheld, net of reinsurance 136 75

Future policy benefits ( 238 ) ( 122 )

Other assets and liabilities, net 30 ( 33 )

12 unchanged sentences

Net cash provided by (used in) investing activities ( 2,006 ) ( 2,882 )

(1) Recast for the adoption of ASU 2018-12.

See Notes 1 and 2 to the Condensed Consolidated Financial Statements .

See Notes to Condensed Consolidated Financial Statements.

2 unchanged sentences

(Unaudited, in millions)

Nine Months Ended September 30,

2023 2022 (1)

Three Months Ended March 31,

Cash flows from financing activities:

5 unchanged sentences

Net proceeds from (payments on) Federal Home Loan Bank notes ( 250 ) —

Net proceeds from (payments on) debt ( 46 ) ( 784 )

Net proceeds from issuance of Senior Notes — 750

Debt issuance costs — ( 7 )

Payments on debt ( 4 ) ( 4 )

Issuance of debt of consolidated investment entities 383 —

Repayments of debt of consolidated investment entities ( 345 ) —

Contributions from partners of consolidated investments 17 —

Dividends on common stock ( 54 ) ( 51 )

2 unchanged sentences

Issuance of preferred stock — 533

Other financing activities — 10

Net cash provided by (used in) financing activities 433 ( 1,099 )

10 unchanged sentences

Non-cash dividend equivalents on stock-based awards $ ( 2 ) $ ( 3 )

Reconciliation to Statement of Financial Position

Reconciliation to Condensed Consolidated Balance Sheets

Cash and cash equivalents $ 2,542 $ 1,779

1 unchanged sentence

Total cash, cash equivalents, and restricted cash $ 2,544 $ 1,781

(1) Recast for the adoption of ASU 2018-12.

See Notes 1 and 2 to the Condensed Consolidated Financial Statements .

See Notes to Condensed Consolidated Financial Statements.

4 unchanged sentences

("JFI" or “Jackson Financial”) together with its subsidiaries (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 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.

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

Jackson Financial is domiciled in the state of Delaware in the United States (“U.S.”).

Prior to September 13, 2021, we were a majority-owned subsidiary of Prudential plc ("Prudential"), London, England and served as Prudential's holding company for its U.S.

On September 13, 2021, the Company demerged from Prudential (the "Demerger") and became a stand-alone U.S.

public company.

As of June 30, 2023, Prudential has no remaining equity interest in the Company.

Prudential retained an equity interest in the Company after the Demerger, but as of June 30, 2023, sold its entire equity interest in the 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.

2 unchanged sentences

• PPM America, Inc.

(“PPM”), is the Company’s investment management operation that manages the life insurance companies’ general account investment funds.

(“PPM”), a registered investment adviser, is the Company’s investment management operation that manages the life insurance companies’ general account investment funds.

PPM also provides investment services to other former affiliated and unaffiliated institutional clients.

• 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 wholly-owned subsidiaries of Jackson are as follows:

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

• Brooke Life Reinsurance Company ("Brooke Re"), also a direct subsidiary of Brooke Life, was formed January 1, 2024, as a Michigan captive reinsurance company.

Other significant wholly-owned subsidiaries of Jackson are as follows:

• Life insurers:

7 unchanged sentences

• Registered investment adviser:

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

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

JNAM manages and oversees those sub-advisers.

• Other insignificant wholly-owned subsidiaries.

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.

See Notes to Condensed Consolidated Financial Statements.

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

Business and Basis of Presentation

Brooke Life Reinsurance Company

During the first quarter of 2024, Jackson entered into a reinsurance transaction with Brooke Re and all economics of the transaction were effective as of January 1, 2024.

Jackson and Brooke Re are both direct subsidiaries of Brooke Life and the reinsurance transaction eliminates upon consolidation at JFI.

The reinsurance transaction primarily provides for the cession from Jackson to Brooke Re of liabilities associated with certain guaranteed benefit riders under our variable annuity contracts and similar products of Jackson (“market risk benefits”), both in-force on the effective date of the reinsurance agreement and written in the future (i.e., on a “flow” basis).

Brooke Re utilizes a modified U.S.

generally accepted accounting principles ("U.S.

GAAP") approach primarily related to market risk benefits, to increase alignment between assets and liabilities in response to changes in economic factors.

The reinsurance transaction allows us to mitigate the impact of the cash surrender value floor on Jackson’s total adjusted capital, statutory required capital, and risk-based capital ratio, as well as to allow for more efficient economic hedging of the underlying risks of Jackson’s business.

Basis of Presentation

The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with U.S.

generally accepted accounting principles (“U.S.

GAAP for interim financial information.

1 unchanged sentence

GAAP, but not required for interim reporting purposes, has been condensed or omitted.

These Condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and the related notes included in our Annual Report on Form 10-K for the year ended December 31, 2022, as filed with the SEC on March 1, 2023, (the "2022 Annual Report"), as recast in our Current Report on 8-K filed May 10, 2023, to reflect the adoption of the accounting standard discussed in the next paragraph.

The condensed consolidated financial information as of December 31, 2022, included herein, has been derived from the audited Consolidated Financial Statements, as so recast.

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

Business and Basis of Presentation

The Company adopted Accounting Standards Update (“ASU”) 2018-12, “Targeted Improvements to the Accounting for Long-Duration Contracts” (“LDTI”), effective January 1, 2023, with a transition date of January 1, 2021.

See Note 2 of the Notes to Condensed Consolidated Financial Statements for further description of our adoption of LDTI.

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 2022 Annual Report, as recast in our Current Report on Form 8-K filed May 10, 2023.

New accounting policies adopted for LDTI are included in Notes 7, 8, 9, 10, 11, and 12 to the Condensed Consolidated Financial Statements in this Form 10-Q.

The condensed consolidated financial information as of December 31, 2023, included herein, has been derived from the audited Consolidated Financial Statements in the 2023 Annual Report.

In the opinion of management, these Condensed Consolidated Financial Statements include all normal recurring adjustments necessary for a fair presentation of the Company’s results.

Operating results for the three and nine months ended September 30, 2023, are not necessarily indicative of the results that may be expected for the full year ending December 31, 2023.

Operating results for the three months ended March 31, 2024, are not necessarily indicative of the results that may be expected for the full year ending December 31, 2024.

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

With the establishment of Brooke Re in the first quarter of 2024, the Company’s hedging program was enhanced to align hedging instruments more closely with market risk benefit reserves which resulted in higher levels of interest rate hedging consistent with the economics of our business.

In connection with this enhanced hedging approach, the Company reviewed its existing interest rate hedging instruments and determined that interest rate swaps that were historically used for duration management purposes should be recharacterized as supporting our hedging of variable annuity market risk benefits.

Accordingly, effective January 1, 2024, the periodic settlements and change in settlement accruals on interest rate swaps will now be classified as non-operating and excluded from pretax adjusted operating earnings.

Prior period amounts have not been adjusted for this prospective recharacterization with respect to interest rate swaps.

Additionally, to better represent the underlying performance of our business, we have made certain reclassifications between financial statement line items within the Condensed Consolidated Income Statement and our non-GAAP financial measure of pretax adjusted operating earnings.

These reclassifications described below had no impact on Net Income or Adjusted Operating Earnings.

• Operating derivative income (loss) will no longer be shown as a separate line item within pretax adjusted operating earnings, and these amounts have been reclassified to net investment income.

After recharacterizing the interest rate swaps described above, the only item remaining in operating derivatives was periodic settlements and change in settlement accruals on cross-currency swaps that are intended to hedge certain foreign denominated fixed maturity securities.

This reclassification only applies to pretax adjusted operating earnings (non-GAAP).

• Interest costs related to portfolio leverage transactions (repurchase agreements, Federal Home Loan Bank short-term advances, and cash collateral costs) were reclassified from Interest Expense to Net Investment Income.

This reclassification applies to Net Income (GAAP) and pretax adjusted operating earnings (non-GAAP).

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

Business and Basis of Presentation

All prior period amounts have been conformed to the current period presentation for the reclassifications discussed above.

Use of Estimates

9 unchanged sentences

• Assumptions used in calculating market risk benefits including policyholder behavior, mortality rates, and capital market assumptions;

• Assumptions impacting the expected term used amortizing deferred acquisition costs, including policyholder behavior and mortality rates.

• Assumptions impacting the expected term used in amortizing deferred acquisition costs, including policyholder behavior and mortality rates.

These estimates and assumptions are based on management’s best estimates and judgments.

5 unchanged sentences

Changes in Accounting Principles – Adopted in Current Year

In March 2020, the Financial Accounting Standards Board (“FASB”) issued ASU 2020-04, “Reference Rate Reform (Topic 848):

Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” The new guidance provides optional expedients for applying U.S.

GAAP to contracts and other transactions affected by reference rate reform and is effective for contract modifications made between March 12, 2020 and December 31, 2022.

In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-04, “Reference Rate Reform (Topic 848):

Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” The guidance provides optional expedients for applying U.S.

GAAP to contracts and other transactions affected by reference rate reform and was originally effective for contract modifications made between March 12, 2020 and December 31, 2022.

In December 2022, the FASB issued ASU 2022-06, “Reference Rate Reform (Topic 848):

Deferral of the Sunset Date of Topic 848” that defers the sunset date of Topic 848 from December 31, 2022 to December 31, 2024, after which entities will no longer be permitted to apply the relief in Topic 848.

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 is being 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 has unfolded.

The contracts modified to date met the criteria for the practical expedient and, therefore, had no material impact on the Company’s Condensed Consolidated Financial Statements.

In December 2022, the FASB issued ASU 2022-06, “Reference Rate Reform (Topic 848):

Deferral of the Sunset Date of Topic 848” which defers the sunset date of Topic 848 from December

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

New Accounting Standards

31, 2022 to December 31, 2024, after which entities will no longer be permitted to apply the relief in Topic 848.

The amendments are effective for all entities as of December 21, 2022.

The Company will continue to evaluate the impacts of reference rate reform on contract modifications and other transactions through December 31, 2024.

In August 2018, the FASB issued ASU 2018-12, “Targeted Improvements to the Accounting for Long Duration Contracts,” ("LDTI"), which included changes to the existing recognition, measurement, presentation and disclosure requirements for long-duration contracts issued by an insurance entity.

The Company adopted LDTI effective January 1, 2023, with a transition date of January 1, 2021, using the modified retrospective transition method relating to liabilities for traditional and limited payment contracts and deferred policy acquisition costs associated therewith, and on a retrospective basis, in relation to market risk benefits ("MRBs").

Under the modified retrospective approach, the Company applied the guidance to contracts in force on the transition date on the basis of their existing carrying value, using updated future cash flow assumptions, and eliminated certain related amounts in accumulated other comprehensive income (loss) (“AOCI”).

Under the full retrospective transition approach, the Company applied the guidance as of the transition date, using actual historical assumption information as of contract inception, as if the accounting principle had always been applied.

Amounts reported as of September 30, 2023 and December 31, 2022 and for the three and nine months ended September 30, 2023 and 2022 within these Condensed Consolidated Financial Statements are accounted for and presented in accordance with U.S.

GAAP reflecting the adoption of LDTI.

LDTI contains four significant changes:

Market risk benefits:

market risk benefits (“MRBs”), a new term for certain contract features that provide for potential benefits in addition to the account balance that expose the Company to other-than-nominal market risk (for example, guaranteed benefits on annuity contracts, including guaranteed minimum withdrawal benefits and guaranteed minimum death benefits on variable annuities), are measured at fair value.

Changes in fair value are recorded and presented separately within the income statement, with the exception of changes in fair value due to non-performance risk, which are recognized in other comprehensive income (loss) (“OCI”);

Deferred acquisition costs:

deferred acquisition costs (“DAC”) are amortized on a constant-level basis, independent of profitability of the underlying business;

Liability for future policy benefits:

annual review and, if necessary, update of cash flow assumptions used to measure the liability for future policy benefits for nonparticipating traditional and limited-payment insurance contracts is required.

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

Enhanced disclosures:

enhanced disclosures, including disaggregated roll-forwards of certain balance sheet accounts that provide information about actual and expected cash flows, as well as information about significant inputs, judgments, assumptions and methods used in measurement, are required.

The enhanced disclosures are intended to improve the ability of users of the financial statements to evaluate the timing, amount, and uncertainty of cash flows arising from long-duration contracts.

The adoption of LDTI resulted in a decrease in total equity of $ 3.0 billion as of the transition date of January 1, 2021, comprised of a reduction in AOCI of $ 0.4 billion and a reduction in retained earnings of $ 2.6 billion.

The primary drivers for this impact to total equity included:

the classification of certain benefits as market risk benefits, which were remeasured at fair value as of the transition date.

The resulting change in the value of these benefits at the transition date, net of the related deferred tax effect, is recognized in retained earnings, with the exception of the cumulative effect of changes in non-performance risk, net of the related deferred tax effect, which is recognized in AOCI;

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

New Accounting Standards

changes to the discount rate used to measure liabilities for future policyholder benefits which, under LDTI, are remeasured each reporting period using current upper-medium grade fixed-income instrument yields, which are generally considered to be those on single-A rated public corporate debt.

The cumulative effect of the remeasurement of these liabilities using the transition date discount rate, net of the related deferred tax effect, is recognized in AOCI;

the removal of certain shadow adjustments previously recorded in AOCI related to the impact of unrealized gains (losses) on investments that were included in the estimated gross profit amortization calculation for deferred acquisition costs, which are no longer recognized upon the adoption of LDTI.

The following table presents the effect of transition adjustments on shareholders' equity due to the adoption of LDTI (in millions):

January 1, 2021

Accumulated other

Retained earnings comprehensive income

Deferred acquisition costs $ — $ 106

Reinsurance recoverable on market risk benefits — ( 34 )

Reserves for future policy benefits and claims payable 97 141

Market risk benefits ( 2,700 ) ( 598 )

Total $ ( 2,603 ) $ ( 385 )

The following table presents amounts previously reported as of December 31, 2020, to reflect the effect of the change due to the adoption of LDTI, and the adjusted amounts as of January 1, 2021 (in millions):

As Previously Effect of As of

Reported Changes 1/1/2021

Deferred acquisition costs $ 13,897 $ 146 $ 14,043

Reinsurance recoverable, net of allowance for credit losses 35,270 ( 154 ) 35,116

Reinsurance recoverable on market risk benefits, at fair value — 471 471

Market risk benefit assets, at fair value — 690 690

Deferred income taxes, net 1,058 824 1,882

Other assets 1,179 2 1,181

Total assets $ 353,532 $ 1,979 $ 355,511

Liabilities and Equity

Reserves for future policy benefits and claims payable $ 22,512 $ ( 5,716 ) $ 16,796

Other contract holder funds 63,592 ( 7 ) 63,585

Market risk benefit liabilities, at fair value — 10,690 10,690

Total liabilities 343,609 4,967 348,576

Accumulated other comprehensive income, net of tax expense 3,821 ( 385 ) 3,436

Retained earnings ( 324 ) ( 2,603 ) ( 2,927 )

Total equity 9,923 ( 2,988 ) 6,935

Total liabilities and equity $ 353,532 $ 1,979 $ 355,511

Liability for future policy benefits

For the liability for future policy benefits, the net transition adjustment is related to the difference in the discount rate used pre-transition and the discount rate at January 1, 2021.

The discount rate used to measure the liability at transition was generally lower than the rates used to measure the liability prior to the adoption of LDTI.

Additionally, at transition, where net premiums exceeded gross premiums at the cohort level, the Company set net premiums equal to gross premiums and recognized the resulting increase in the liability for future policy benefits as an adjustment to opening retained earnings.

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

New Accounting Standards

The following table presents the impact of the adoption of LDTI, as of the transition date, on reserves for future policy benefits and claims payable (in millions):

Payout Closed Closed

Annuities Block Life Block Annuity Total

Reserves for future policy benefits at December 31, 2020 $ 1,148 $ 5,809 $ 5,328 $ 12,285

Adjustment for loss contracts under the modified retrospective approach 4 15 18 37

Effect of remeasurement of liability at current discount rate 143 560 997 1,700

Reserves for future policy benefits at January 1, 2021 $ 1,295 $ 6,384 $ 6,343 $ 14,022

Other future policy benefits and claims payable 2,774

Reserves for future policy benefits and claims payable at January 1, 2021 $ 16,796

The following table presents the transition date reclassifications and adjustments to reserves for future policy benefits by category resulting from the adoption of LDTI (in millions):

Reserve for future policy benefits Other (1)

Reserve for future policy benefits and claims payable at December 31, 2020 $ 12,285 $ 10,227 $ 22,512

Adjustments for LDTI transition 1,737 ( 7,453 ) ( 5,716 )

Reserve for future policy benefits and claims payable at January 1, 2021 $ 14,022 $ 2,774 $ 16,796

(1) Includes variable annuity embedded derivatives that were reclassed to market risk benefits.

The following table presents the impact of the adoption of LDTI, as of the transition date, on Closed Block Life additional liabilities for universal life-type contracts (in millions):

Closed Block Life

Balance, December 31, 2020 $ 1,157

Adjustment for reversal of AOCI adjustments 28

Adjustment for cumulative effect of adoption of LDTI —

Balance, January 1, 2021 $ 1,185

Market risk benefits

For MRBs, the net transition adjustment relates to the measurement of certain guaranteed benefit features at fair value that were previously measured using an insurance accrual model.

The measurement of these features at fair value includes use of generally lower discount rates and lower assumed future fund performance relative to their previous measurement, as well as inclusion of risk margins, all of which lead to a generally higher fair value balance relative to the carrying value prior to transition to LDTI.

The transition adjustment to AOCI for MRBs relates to the effect of changes in the non-performance risk between the contract issuance date and the transition date.

The remaining difference between the carrying value of these contract features under the insurance accrual model prior to transition to LDTI and the fair value measured at transition was recorded as an adjustment to retained earnings as of the transition date.

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

New Accounting Standards

The following table presents the impact of the adoption of LDTI, as of the transition date, on MRBs, net (in millions):

Variable Other

Annuities Product Lines Total

Balance, December 31, 2020 - Carrying amount of MRBs under prior guidance $ 7,306 $ 74 $ 7,380

Adjustment for reversal of AOCI adjustments ( 27 ) ( 48 ) ( 75 )

Cumulative effect of the changes in non-performance risk between the original contract issuance date and the transition date ( 743 ) ( 6 ) ( 749 )

Remaining cumulative difference (exclusive of non-performance risk change) between 12/31/20 carrying amount and fair value measurement for the MRBs 3,372 72 3,444

Balance, January 1, 2021 - Market risk benefits, net, at fair value $ 9,908 $ 92 $ 10,000

Deferred acquisition costs

For DAC, at transition to LDTI, the Company removed shadow adjustments previously recorded in AOCI for the impact of unrealized gains and losses that were included in the estimated gross profit amortization calculation prior to the adoption of LDTI.

The following table presents the impact of the adoption of LDTI, as of the transition date, on DAC (in millions):

Variable Other

Annuities Product Lines Total

Balance, December 31, 2020 - Deferred acquisition costs $ 13,725 $ 172 $ 13,897

Adjustment for reversal of AOCI adjustments 151 ( 5 ) 146

Balance, January 1, 2021 - Deferred acquisition costs $ 13,876 $ 167 $ 14,043

Reinsurance recoverable

The following table presents the impact of the adoption of LDTI, as of the transition date, on reinsurance recoverable (in millions) :

Balance, December 31, 2020 $ 35,270

Reclass of carrying amount of MRBs under prior guidance ( 407 )

Adjustment for loss contracts under the modified retrospective approach —

Effect of remeasurement of liability at current discount rate 253

Balance, January 1, 2021 $ 35,116

The following table presents the impact of the adoption of LDTI, as of the transition date, on reinsurance recoverable on market risk benefits at fair value (in millions):

Variable Other

Annuities Product Lines Total

Balance, December 31, 2020 - Carrying amount of MRBs under prior guidance $ 340 $ 67 $ 407

Adjustment for reversal of AOCI adjustments — ( 47 ) ( 47 )

Cumulative difference between 12/31/2020 carrying amount and fair value measurement for the MRBs 28 83 111

Balance, January 1, 2021 - Reinsurance recoverable on market risk benefits at fair value $ 368 $ 103 $ 471

The adoption of LDTI resulted in an increase in net income attributable to Jackson Financial of $ 400 million and $ 929 million for the three and nine months ended September 30, 2022, respectively, and also resulted in an increase in total equity of $ 223 million for the year ended December 31, 2022.

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

New Accounting Standards

The following table presents amounts previously reported in the Consolidated Balance Sheets as of December 31, 2022, to reflect the effect of the change due to the adoption of LDTI, and the adjusted amounts as of December 31, 2022 (in millions):

As Previously As Adjusted

Reported Effect of As of

December 31, 2022 Changes December 31, 2022

Deferred acquisition costs $ 13,422 $ ( 499 ) $ 12,923

Reinsurance recoverable, net of allowance for credit losses 29,641 ( 595 ) 29,046

Reinsurance recoverable on market risk benefits, at fair value — 221 221

Market risk benefit assets, at fair value — 4,865 4,865

Deferred income taxes, net 385 ( 65 ) 320

Other assets 946 ( 2 ) 944

Total assets $ 311,058 $ 3,925 $ 314,983

Liabilities and Equity

Reserves for future policy benefits and claims payable $ 14,273 $ ( 1,955 ) $ 12,318

Other contract holder funds 58,195 ( 5 ) 58,190

Market risk benefit liabilities, at fair value — 5,662 5,662

Total liabilities 301,903 3,702 305,605

Accumulated other comprehensive income, net of tax expense ( 5,481 ) 2,103 ( 3,378 )

Retained earnings 8,283 ( 1,880 ) 6,403

Total equity 9,155 223 9,378

Total liabilities and equity $ 311,058 $ 3,925 $ 314,983

The following table presents amounts previously reported in Condensed Consolidated Income Statements for the three and nine months ended September 30, 2022, to reflect the effect of the change due to the adoption of LDTI, and the adjusted amounts (in millions, except per share amounts):

As Previously Reported As Adjusted

Three Months Ended Effect of Three Months Ended

September 30, 2022 Changes September 30, 2022

Total net gains (losses) on derivatives and investments $ 1,419 $ ( 1,060 ) $ 359

Total revenues 4,022 ( 1,060 ) 2,962

Benefits and Expenses

Death, other policy benefits and change in policy reserves, net of deferrals 586 ( 349 ) 237

(Gain) loss from updating future policy benefits cash flow assumptions, net — ( 37 ) ( 37 )

Market risk benefits (gains) losses, net — ( 913 ) ( 913 )

Interest credited on other contract holder funds, net of deferrals and amortization 224 — 224

Amortization of deferred acquisition costs 564 ( 259 ) 305

Total benefits and expenses 1,995 ( 1,558 ) 437

Pretax income (loss) 2,027 498 2,525

Income tax expense (benefit) 559 98 657

Net income (loss) 1,468 400 1,868

Net income (loss) attributable to Jackson Financial Inc.

$ 1,479 $ 400 $ 1,879

Earnings per share

Basic $ 17.38 $ 4.70 $ 22.08

Diluted $ 16.83 $ 4.55 $ 21.38

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

New Accounting Standards

As Previously Reported As Adjusted

Nine Months Ended Effect of Nine Months Ended

September 30, 2022 Changes September 30, 2022

Total net gains (losses) on derivatives and investments $ 6,891 $ ( 3,055 ) $ 3,836

Total revenues 14,932 ( 3,055 ) 11,877

Benefits and Expenses

Death, other policy benefits and change in policy reserves, net of deferrals 2,090 ( 1,279 ) 811

(Gain) loss from updating future policy benefits cash flow assumptions, net — ( 8 ) ( 8 )

Market risk benefits (gains) losses, net — ( 1,636 ) ( 1,636 )

Interest credited on other contract holder funds, net of deferrals and amortization 628 2 630

Amortization of deferred acquisition costs 2,276 ( 1,347 ) 929

Total benefits and expenses 6,868 ( 4,268 ) 2,600

Pretax income (loss) 8,064 1,213 9,277

Income tax expense (benefit) 1,606 284 1,890

Net income (loss) 6,458 929 7,387

Net income (loss) attributable to Jackson Financial Inc.

$ 6,407 $ 929 $ 7,336

Earnings per share

Basic $ 74.39 $ 10.79 $ 85.18

Diluted $ 71.73 $ 10.40 $ 82.13

The following table presents amounts previously reported in Condensed Consolidated Statements of Comprehensive Income (Loss) for the three and nine months ended September 30, 2022, to reflect the effect of the change due to the adoption of LDTI, and the adjusted amounts (in millions):

As Previously Reported As Adjusted

Three Months Ended Effect of Three Months Ended

September 30, 2022 Changes September 30, 2022

Net income (loss) $ 1,468 $ 400 $ 1,868

Other comprehensive income (loss), net of tax:

Change in unrealized gains (losses) on securities with no credit impairment, net of tax expense (benefit) ( 1,978 ) ( 91 ) ( 2,069 )

Change in current discount rate related to reserve for future policy benefits, net of tax expense (benefit) — 361 361

Change in non-performance risk on market risk benefits, net of tax expense (benefit) — 432 432

Total other comprehensive income (loss) ( 1,996 ) 702 ( 1,294 )

Comprehensive income (loss) attributable to Jackson Financial Inc.

$ ( 517 ) $ 1,102 $ 585

The Company will continue to evaluate the impact of reference rate reform on contract modifications and other transactions through December 31, 2024.

Changes in Accounting Principles – Issued but Not Yet Adopted

In November 2023, the FASB issued ASU 2023-07, “Improvements to Reportable Segment Disclosures”, which requires a public entity to disclose its significant segment expenses regularly provided to the chief operating decision maker (CODM) and the amount and composition of other segment items.

It also requires a public entity to disclose the title and position of the CODM.

The ASU allows a public entity to disclose multiple measurements of segment profit or loss if a CODM uses multiple measures to assess segment’s performance and allocate resources.

This ASU also expands the current interim disclosure requirements to require that nearly all of the annual segment disclosures be made on an interim basis.

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

New Accounting Standards

As Previously Reported As adjusted

Nine Months Ended Effect of Nine Months Ended

September 30, 2022 Changes September 30, 2022

Net income (loss) $ 6,458 $ 929 $ 7,387

Other comprehensive income (loss), net of tax:

Change in unrealized gains (losses) on securities with no credit impairment, net of tax expense (benefit) ( 7,466 ) ( 317 ) ( 7,783 )

Change in current discount rate related to reserve for future policy benefits, net of tax expense (benefit) — 1,423 1,423

Change in non-performance risk on market risk benefits, net of tax expense (benefit) — 1,963 1,963

Total other comprehensive income (loss) ( 7,462 ) 3,069 ( 4,393 )

Comprehensive income (loss) attributable to Jackson Financial Inc.

$ ( 1,055 ) $ 3,998 $ 2,943

The adoption of LDTI did not affect the previously reported totals for net cash flows provided by (used in) operating, investing, or financing activities, but did affect the following components of net cash flows provided by (used in) operating activities:

As Previously Reported As Adjusted

Nine Months Ended Effect of Nine Months Ended

September 30, 2022 Changes September 30, 2022

Cash flows from operating activities:

Net income (loss) $ 6,458 $ 929 $ 7,387

Adjustments to reconcile net income to net cash provided by operating activities:

Net losses (gains) on derivatives ( 4,362 ) 3,055 ( 1,307 )

Net (gain) loss on market risk benefits — ( 1,636 ) ( 1,636 )

(Gain) loss from updating future policy benefits cash flow assumptions, net — ( 8 ) ( 8 )

Interest credited on other contract holder funds, gross 628 2 630

Deferred income tax expense (benefit) 1,625 283 1,908

Change in deferred acquisition costs 1,783 ( 1,348 ) 435

Change in funds withheld, net of reinsurance ( 204 ) 412 208

Change in other assets and liabilities, net ( 167 ) ( 1,689 ) ( 1,856 )

Total adjustments ( 697 ) ( 929 ) ( 1,626 )

Net cash provided by (used in) operating activities $ 2,941 $ — $ 2,941

In addition, information regarding periods ended on or before December 31, 2022 presented in the following Notes to the Condensed Consolidated Financial Statements has been recast to reflect the adoption of LDTI:

Notes 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 15, 19, 20, and 21.

In March 2022, the FASB issued ASU 2022-02, “Financial Instruments – Credit Losses (Topic 326):

Troubled Debt Restructurings and Vintage Disclosures.” The new guidance eliminates the accounting guidance for troubled debt restructurings by creditors, and instead requires an entity to evaluate whether a modification represents a new loan or a continuation of an existing loan.

The amendments also enhance disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty.

New guidance for vintage disclosures requires that current-period gross write-offs be disclosed by year of origination for financing receivables and net investments in leases that fall within scope of the current expected credit loss model.

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

Updates should be applied prospectively.

However, an entity has the option to apply the modified retrospective method related to the recognition and measurements of troubled debt restructurings.

Effective January 1, 2023, the Company adopted ASU 2022-02, which did not have a material impact to the Condensed Consolidated Financial Statements.

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

Segment Information

amendments in this ASU will be effective for the Company for annual periods beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted, and are to be applied retrospectively.

The Company is in the process of evaluating the impact of the new guidance and does not plan to early adopt.

In December 2023, the FASB issued ASU 2023-09, “Improvements to Income Tax Disclosures”, which requires disaggregated information about a reporting entity’s effective tax rate reconciliation as well as information on income taxes paid.

The new requirements in this ASU will be effective for the Company for annual periods beginning after December 15, 2024, with early adoption permitted, and are to be applied on a prospective basis with the option to apply retrospectively.

The Company is in the process of evaluating the impact of the new guidance and determining the transition method and the timing of adoption.

Segment Information

6 unchanged sentences

The Company’s Retail Annuities segment offers a variety of retirement income and savings products through its diverse suite of products, consisting primarily of variable annuities, fixed index annuities, fixed annuities, payout annuities, and registered index-linked annuities ("RILA").

These products are distributed through various wirehouses, insurance brokers and independent broker-dealers, as well as through banks and financial institutions, primarily to high-net worth investors and the mass and affluent markets.

These products are distributed through various wirehouses, insurance brokers and independent broker-dealers, as well as through banks and financial institutions.

The Company’s variable annuities represent an attractive option for retirees and soon-to-be retirees, providing access to equity market appreciation and add-on benefits, including guaranteed lifetime income.

1 unchanged sentence

The Company also provides access to guaranteed lifetime income as an add-on benefit.

A fixed annuity is a guaranteed product designed to build wealth without market exposure, through a crediting rate that is likely to be superior to interest rates offered from banks or money market funds.

A RILA offers customers exposure to market returns through market index-linked investment options, subject to a cap, and offers a variety of guarantees designed to modify or limit losses.

A fixed annuity is a guaranteed product designed to build wealth without market exposure, through a crediting rate that is likely to be superior to interest rates offered by banks or money market funds.

A RILA offers customers access to market returns through market index-linked investment options, subject to a cap, and offers a variety of features designed to modify or limit losses.

The financial results of the variable annuity business within the Company’s Retail Annuities segment are largely dependent on the performance of the contract holder account value, which impacts both the level of fees collected and the benefits paid to the contract holder.

6 unchanged sentences

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.

Segment Information

Closed Life and Annuity Blocks

2 unchanged sentences

The Closed Life and Annuity Blocks segment also includes a block of group payout annuities that we assumed from John Hancock Life Insurance Company (USA) and John Hancock Life Insurance Company of New York through reinsurance transactions in 2018 and 2019, respectively.

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

Segment Information

insurance policies was a more efficient means of diversifying our in-force business than selling new life insurance products.

The Company historically offered traditional and interest-sensitive life insurance products but discontinued new sales of life insurance products in 2012, as we believe opportunistically acquiring mature blocks of life insurance policies was a more efficient means of diversifying our in-force business than selling new life insurance products.

The profitability of the Company’s Closed Life and Annuity Blocks segment is largely driven by its historical ability to appropriately price its products and purchase appropriately priced blocks of business, as realized through underwriting, expense and net gains (losses) on derivatives and investments, and the ability to earn an assumed rate of return on the assets supporting that business.

8 unchanged sentences

GAAP, or that are non-recurring in nature, as well as certain other revenues and expenses that are not considered to drive 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 U.S.

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

Pretax adjusted operating earnings equals net income adjusted to eliminate the impact of the items described in the following numbered paragraphs.

4 unchanged sentences

(i) fees attributed to guaranteed benefits;

(ii) changes in the fair value of freestanding derivatives used to manage the risk associated with market risk benefits and other guaranteed benefit features;

(ii) changes in the fair value of freestanding derivatives used to manage the risk associated with market risk benefits and other guaranteed benefit features, excluding earned income from periodic settlements and changes in settlement accruals on cross-currency swaps;

(iii) the movements in reserves, market risk benefits, guaranteed benefit features accounted for as embedded derivative instruments, and related claims and benefit payments;

6 unchanged sentences

and (ii) impairments of securities, after adjustment for the non-credit component of the impairment charges.

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

Segment Information

Change in Value of Funds Withheld Embedded Derivative and Net Investment Income on Funds Withheld Assets:

6 unchanged sentences

Income taxes.

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

Segment Information

Set forth in the tables below is certain information with respect to the Company’s segments, as described above (in millions, 2022 information recast for the adoption of LDTI):

Three Months Ended September 30, 2023 Retail Annuities Institutional

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

Three Months Ended March 31, 2024 Retail Annuities Institutional

Products Closed Life

4 unchanged sentences

Net investment income 152 113 163 4 432

Income (loss) on operating derivatives ( 12 ) ( 13 ) ( 11 ) ( 2 ) ( 38 )

Other income 8 — 7 ( 14 ) 1

12 unchanged sentences

Pretax Adjusted Operating Earnings $ 419 $ 31 $ 19 $ ( 80 ) $ 389

Three Months Ended September 30, 2022 Retail Annuities Institutional

Products Closed Life

Blocks Corporate and

Operating Revenues

Fee income $ 1,002 $ — $ 118 $ 13 $ 1,133

Premiums 3 — 36 — 39

Net investment income 72 80 166 22 340

Income (loss) on operating derivatives 2 ( 8 ) 7 2 3

Other income 11 — 8 — 19

Total Operating Revenues 1,090 72 335 37 1,534

Operating Benefits and Expenses

Death, other policy benefits and change in policy

reserves, net of deferrals 2 — 168 — 170

(Gain) loss from updating future policy benefits cash flow assumptions, net ( 1 ) — ( 36 ) — ( 37 )

Interest credited on other contract holder funds, net

of deferrals and amortization 72 51 101 — 224

Interest expense 8 — — 21 29

Operating costs and other expenses, net of deferrals 540 1 23 28 592

Amortization of deferred acquisition costs 139 — 3 — 142

Total Operating Benefits and Expenses 760 52 259 49 1,120

Pretax Adjusted Operating Earnings $ 330 $ 20 $ 76 $ ( 12 ) $ 414

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

Segment Information

Nine Months Ended September 30, 2023 Retail Annuities Institutional

Products Closed Life

Blocks Corporate and

Operating Revenues

Fee income $ 3,015 $ — $ 345 $ 37 $ 3,397

Premiums 16 — 102 — 118

Net investment income 401 351 524 49 1,325

Income (loss) on operating derivatives ( 34 ) ( 38 ) ( 35 ) ( 10 ) ( 117 )

Other income 28 — 18 6 52

Total Operating Revenues 3,426 313 954 82 4,775

Operating Benefits and Expenses

Death, other policy benefits and change in policy

reserves, net of deferrals 21 — 467 — 488

(Gain) loss from updating future policy benefits cash flow assumptions, net ( 6 ) — 31 — 25

Interest credited on other contract holder funds, net

of deferrals and amortization

284 247 333 — 864

Interest expense 68 16 — 66 150

Operating costs and other expenses, net of deferrals 1,605 3 122 132 1,862

Amortization of deferred acquisition costs 416 — 8 — 424

Total Operating Benefits and Expenses 2,388 266 961 198 3,813

Pretax Adjusted Operating Earnings $ 1,038 $ 47 $ ( 7 ) $ ( 116 ) $ 962

Nine Months Ended September 30, 2022 Retail Annuities Institutional

Three Months Ended March 31, 2023 Retail Annuities Institutional

Products Closed Life

4 unchanged sentences

Net investment income 115 86 167 18 386

Income (loss) on operating derivatives 20 ( 13 ) 35 20 62

Other income 9 — 4 2 15

12 unchanged sentences

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

These include the elimination of investment income, 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 Financial and its subsidiaries to its affiliate PPM, which were $ 20 million and $ 18 million for the three months ended September 30, 2023 and 2022, respectively, and $ 57 million and $ 52 million for the nine months ended September 30, 2023 and 2022, respectively .

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

Segment Information

These include the elimination of investment income, 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 Financial and its subsidiaries to PPM, which were $ 19 million and $ 18 million for the three months ended March 31, 2024 and 2023, respectively .

The following table summarizes the reconciling items from the non-GAAP measure of total operating revenues to the U.S.

GAAP measure of total revenues attributable to the Company (in millions, 2022 information recast for the adoption of LDTI):

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

2023 2022 2023 2022

GAAP measure of total revenues attributable to the Company (in millions):

Three Months Ended March 31,

Total operating revenues $ 1,680 $ 1,533

6 unchanged sentences

$ ( 322 ) $ ( 764 )

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

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

(1) Substantially all the Company's revenues originated in the U.S.

There were no customers that, individually, generate revenues that exceeded 10% of total revenues.

The following table summarizes the reconciling items from the non-GAAP measure of total operating benefits and expenses to the U.S.

GAAP measure of total benefits and expenses attributable to the Company (in millions, 2022 information recast for the adoption of LDTI):

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

2023 2022 2023 2022

GAAP measure of total benefits and expenses attributable to the Company (in millions):

Three Months Ended March 31,

Total operating benefits and expenses $ 1,291 $ 1,231

2 unchanged sentences

Amortization of DAC related to non-operating revenues and expenses 139 153

Other items — — — 2

Total benefits and expenses $ ( 1,225 ) $ 1,290

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

Segment Information

The following table summarizes the reconciling items, from the non-GAAP measure of pretax adjusted operating earnings to the U.S.

GAAP measure of net income attributable to the Company (in millions, 2022 information recast for the adoption of LDTI):

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

2023 2022 2023 2022

GAAP measure of net income attributable to the Company (in millions):

Three Months Ended March 31,

Pretax adjusted operating earnings $ 389 $ 302

Non-operating adjustments income (loss):

Pre-tax reconciling items from adjusted operating income to net income (loss) attributable to Jackson Financial Inc.:

Fees attributable to guarantee benefit reserves 788 780

22 unchanged sentences

Debt Securities

The following table sets forth the composition of the fair value of debt securities at September 30, 2023 and December 31, 2022, classified by rating categories as assigned by a nationally recognized statistical rating organization (a “rating agency”), 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 March 31, 2024 and December 31, 2023, classified by rating categories as assigned by a nationally recognized statistical rating organization (a “rating agency”), 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 a rating agency when rating agencies ratings are not equivalent and, for purposes of the table, if not otherwise rated by a rating agency, the NAIC rating of a security is converted to an equivalent rating agency rating.

At September 30, 2023 and December 31, 2022, the carrying value of investments rated by the Company’s consolidated investment advisor totaled $ 422 million and $ 32 million, respectively.

At March 31, 2024 and December 31, 2023, the carrying value of investments rated by the Company’s consolidated investment advisor totaled $ 389 million and $ 486 million, respectively.

Percent of Total Debt

Securities Carrying Value

September 30, 2023 December 31, 2022

March 31, 2024 December 31, 2023

Investment Rating

7 unchanged sentences

100.0 % 100.0 %

At September 30, 2023 and December 31, 2022, the total carrying value of debt securities in an unrealized loss position consisted of:

September 30, 2023 December 31, 2022

At March 31, 2024 and December 31, 2023, the total carrying value of debt securities in an unrealized loss position consisted of:

March 31, 2024 December 31, 2023

Investment grade securities 77 % 77 %

1 unchanged sentence

Not rated securities 21 % 21 %

Unrealized losses on debt securities that were below investment grade or not rated were approximately 20 % and 21 % of the aggregate gross unrealized losses on available-for-sale debt securities at September 30, 2023 and December 31, 2022, respectively.

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

As of September 30, 2023, the industries accounting for the largest percentage of unrealized losses included utility ( 18 % of corporate gross unrealized losses) and healthcare ( 10 %).

The largest unrealized loss related to a single corporate obligor was $ 63 million at September 30, 2023.

Unrealized losses on debt securities that were below investment grade or not rated were approximately 21 % and 21 % of the aggregate gross unrealized losses on available-for-sale debt securities at March 31, 2024 and December 31, 2023, respectively.

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

As of December 31, 2022, the industries accounting for the largest percentage of unrealized losses included utility ( 16 % of corporate gross unrealized losses) and healthcare ( 10 %).

The largest unrealized loss related to a single corporate obligor was $ 57 million at December 31, 2022.

At September 30, 2023 and December 31, 2022, 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):

Corporate securities in an unrealized loss position were diversified across industries as follows (in millions, except percentages):

March 31, 2024 December 31, 2023

Industries accounting for the largest percentage of corporate gross unrealized losses:

Utility 17 % 17 %

Financial Services 13 % 14 %

Largest unrealized loss related to a single corporate obligor $ 52 $ 50

At March 31, 2024 and December 31, 2023, 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

September 30, 2023 Cost (1)

March 31, 2024 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 September 30, 2023, 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.

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

The amortized cost, ACL, gross unrealized gains and losses, and fair value of debt securities at March 31, 2024, 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.

Allowance Gross Gross

11 unchanged sentences

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

As required by law in various states in which business is conducted, securities with a carrying value of $ 99 million and $ 90 million at September 30, 2023 and December 31, 2022, respectively, were on deposit with regulatory authorities.

As required by law in various states in which business is conducted, securities with a carrying value of $ 88 million and $ 91 million at March 31, 2024 and December 31, 2023, 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.

3 unchanged sentences

Amortized for Unrealized Unrealized Fair

September 30, 2023 Cost (1)

March 31, 2024 Cost (1)

Credit Loss Gains Losses Value

12 unchanged sentences

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

The Company defines its exposure to non-agency residential mortgage loans as follows:

The Company defines its exposure to non-agency RMBS as follows:

• Prime loan-backed securities are collateralized by mortgage loans made to the highest rated borrowers.

3 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):

September 30, 2023 December 31, 2022

March 31, 2024 December 31, 2023

Less than 12 months Less than 12 months

35 unchanged sentences

(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, 2023 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.

Debt securities in an unrealized loss position as of March 31, 2024 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 September 30, 2023, unrealized losses associated with debt securities are primarily due to widening credit spreads or rising risk-free rates since purchase.

As of March 31, 2024, unrealized losses associated with debt securities are primarily due to widening credit spreads or rising risk-free rates since purchase.

As described below, the Company performed analyses 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.

34 unchanged sentences

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

Accrued interest written off was $ 1 million and nil during the three and nine months ended September 30, 2023 and three and nine months ended September 30, 2022, respectively.

Accrued interest of nil and nil was written off during the three months ended March 31, 2024, and 2023, respectively.

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

Three Months Ended September 30, 2023 US

securities Other government securities Public

utilities Corporate securities Residential mortgage-backed Commercial mortgage-backed Other

asset-backed securities Total

Balance at July 1, 2023 $ — $ 3 $ — $ 7 $ 6 $ — $ — $ 16

Additions for which credit loss was not previously recorded — 2 — 15 — 9 — 26

Changes for securities with previously recorded credit loss — — — 2 — — — 2

Additions for purchases of PCD debt securities (1)

— — — — — — — —

Reductions from charge-offs — — — — — — — —

Reductions for securities disposed — — — ( 1 ) — — — ( 1 )

Securities intended/required to be sold before recovery of amortized cost basis — ( 2 ) — ( 6 ) — ( 9 ) — ( 17 )

Balance at September 30, 2023 (2)

$ — $ 3 $ — $ 17 $ 6 $ — $ — $ 26

Three Months Ended September 30, 2022 US

securities Other government securities Public

utilities Corporate securities Residential mortgage-backed Commercial mortgage-backed Other

asset-backed securities Total

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

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

Changes for securities with previously recorded credit loss — — ( 1 ) ( 8 ) ( 2 ) — — ( 11 )

Additions for purchases of PCD debt securities (1)

— — — — — — — —

Reductions from charge-offs — — — — — — — —

Reductions for securities disposed — ( 3 ) — — — — — ( 3 )

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

Balance at September 30, 2022 (2)

$ — $ 3 $ — $ 23 $ 5 $ — $ — $ 31

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

Nine Months Ended September 30, 2023 US

Three Months Ended March 31, 2024 US

securities Other government securities Public

9 unchanged sentences

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

Balance at September 30, 2023 (2)

Balance at March 31, 2024 (2)

$ — $ — $ — $ 13 $ 6 $ — $ 1 $ 20

Nine Months Ended September 30, 2022 US

Three Months Ended March 31, 2023 US

securities Other government securities Public

9 unchanged sentences

Securities intended/required to be sold before recovery of amortized cost basis — — — ( 17 ) — — — ( 17 )

Balance at September 30, 2022 (2)

Balance at March 31, 2023 (2)

$ — $ 3 $ — $ 21 $ 5 $ — $ — $ 29

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

(2) Accrued interest receivable on debt securities totaled $ 416 million and $ 414 million as of September 30, 2023 and 2022, respectively, and was excluded from the determination of credit losses for the three and nine months ended September 30, 2023 and 2022.

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

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

(2) Accrued interest receivable on debt securities totaled $ 403 million and $ 413 million as of March 31, 2024 and 2023, respectively, and was excluded from the determination of credit losses for the three months ended March 31, 2024, and 2023.

Net Investment Income

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

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

2023 2022 2023 2022

Three Months Ended March 31,

Debt securities (1)

$ 432 $ 306 $ 1,152 $ 792

Equity securities 2 ( 10 )

5 unchanged sentences

Investment expenses (2)

( 122 ) ( 130 )

Net investment income excluding funds withheld assets 464 400

1 unchanged sentence

Net investment income $ 734 $ 707

(1) Includes unrealized gains (losses) on trading securities and includes $ 51 million and $ 43 million for the three and nine months ended September 30, 2023, respectively, and $( 8 ) million and $( 103 ) million for the three and nine months ended September 30, 2022, respectively, related to the change in fair value for securities carried under the fair value option.

Unrealized gains (losses) included in investment income that were recognized on equity securities held were $( 16 ) million and $( 17 ) million, for the three months ended September 30, 2023 and 2022, respectively, and $( 38 ) million and $( 48 ) million, for the nine months ended September 30, 2023 and 2022, respectively.

(1) Includes changes in fair value gains (losses) on trading securities and includes $ 25 million and $ 27 million for the three months ended March 31, 2024, and 2023, respectively, related to the change in fair value for securities carried under the fair value option.

(2) In the first quarter of 2024, interest costs principally associated with repurchase agreements and cash collateral were reclassified from interest expense to net investment income.

All prior period amounts have been conformed to current period presentation.

Unrealized gains (losses) included in investment income that were recognized on equity securities held were $ 7 million and $( 14 ) million, for the three months ended March 31, 2024 and 2023, respectively.

Net Gains (Losses) on Derivatives and Investments

The following table summarizes net gains (losses) on derivatives and investments (in millions, 2022 information recast for the adoption of LDTI):

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

2023 2022 2023 2022

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

Three Months Ended March 31,

Available-for-sale securities

12 unchanged sentences

These gains (losses) are increased or decreased by changes in the embedded derivative liability related to the Athene funds withheld coinsurance 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 nine months ended September 30, 2023 was $ 756 million and $ 2,909 million, which was approximately 88 % and 94 % of book value, 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.

Proceeds from sales of available-for-sale debt securities were $ 0.9 billion and $ 4.2 billion during the three and nine months ended September 30, 2023, respectively, and $ 1.4 billion and $ 6.3 billion during the three and nine months ended September 30, 2022, respectively.

The aggregate fair value of securities sold at a loss for the three months ended March 31, 2024 and 2023 was $ 1,270 million and $ 1,797 million, which was approximately 93 % and 97 % of book value, respectively.

Proceeds from sales of available-for-sale debt securities were $ 1.7 billion and $ 2.1 billion during the three months ended March 31, 2024 and 2023, respectively.

Consolidated Variable Interest Entities ("VIEs")

The Company concluded that the following entities are VIEs and that the Company is the primary beneficiary as it has both the power to direct the most significant activities of the VIE as well as the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE.

In each case, the Company’s exposure to loss is limited to the capital invested plus, in the cases of the limited liability companies and the Private Equity Funds, unfunded capital commitments.

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

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

In December 2022, a consolidated VIE issued $ 276 million par, net of the Company’s holding of CLOs.

The Company’s policy is to record the consolidation of VIEs on a one-month lag due to the timing of when information is available from the VIE.

Therefore, the VIE's issuance of this CLO is not reflected in the Company’s Consolidated Balance Sheet as of December 31, 2022 but its inclusion would not materially impact the financial position of the Company as a result of the offsetting changes to assets and liabilities.

The Company concluded that the following entities are VIEs and that the Company is the primary beneficiary as it has both the power to direct the most significant activities of the VIE and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE.

In each case, the Company’s exposure to loss is limited to the capital invested plus, in the cases of the limited liability companies ("LLCs") and the Private Equity Funds, unfunded capital commitments.

• The Company funds affiliated LLCs to facilitate the issuance of collateralized loan obligations ("CLOs").

In December 2023, a consolidated CLO expanded its issuance by $ 97 million, net of the Company’s holding, which was not reflected in the Company's Consolidated Balance Sheet as of December 31, 2023 due to the reporting lag.

In March 2024, a new consolidated CLO was created.

It has total assets of $ 37 million net of the Company’s holding, which was not reflected in the Company’s Consolidated Balance Sheet as of March 31, 2024 due to the reporting lag.

The inclusion of these additional issuances would not materially impact the financial position of the Company due to the offsetting changes to assets and liabilities.

• Private Equity Funds III – VIII are limited partnership structures that invest the ownership capital in portfolios of various other limited partnership structures.

The Company intends to divest its investment in certain private equity funds.

The Company estimated a loss of approximately $ 93 million which it recognized in Net Investment Income for the nine months ended September 30, 2023, and which approximates the ultimate loss incurred upon the sale in October 2023.

The Company sold all of its investment in Private Equity Funds III - VI and the majority of its investment in Private Equity Fund VII during the year ended December 31, 2023.

The Company recorded a loss of $ 97 million on the sale, which it recognized in Net Investment Income for the year ended December 31, 2023.

Those entities were deconsolidated as of December 31, 2023.

• PPM has created and managed institutional share class mutual funds, where Jackson seeds new funds, or new share classes within a fund, when deemed necessary to develop the requisite track record prior to allowing investment by external parties.

2 unchanged sentences

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

September 30, 2023 December 31, 2022

March 31, 2024 December 31, 2023

Debt securities, at fair value under fair value option $ 2,165 $ 2,037

13 unchanged sentences

The Company has concluded the following entities are VIEs but does not consolidate them.

Based on analysis of the limited partnerships, limited liability companies and the mutual funds, the Company is not the primary beneficiary of the VIE because the Company lacks the power to direct the activities of the VIE that most significantly impact the VIE's performance or lacks the obligation to absorb losses or the right to receive benefits that could potentially be significant to the entities, or both.

• The Company invests in certain limited partnerships ("LPs") and limited liability companies ("LLCs").

Based on analysis of the limited partnerships ("LPs"), LLCs and the mutual funds, the Company is not the primary beneficiary of the VIE because the Company lacks the power to direct the activities of the VIE that most significantly impact the VIE's performance or lacks the obligation to absorb losses or the right to receive benefits that could potentially be significant to the entities, or both.

• The Company invests in certain LPs and LLCs.

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 16 of the Notes to Condensed Consolidated Financial Statements.

The Company’s exposure to loss is limited to the capital invested and unfunded capital commitments related to the LPs/LLCs, which was $ 2,908 million and $ 3,285 million as of September 30, 2023 and December 31, 2022, respectively.

The Company’s exposure to loss is limited to the capital invested and unfunded capital commitments related to the LPs/LLCs, which was $ 2,578 million and $ 2,576 million as of March 31, 2024 and December 31, 2023, 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.

1 unchanged sentence

• The Company invests in certain mutual funds.

Mutual funds are recognized in equity securities on the Condensed Consolidated Balance Sheets and were $ 19 million and $ 28 million as of September 30, 2023 and December 31, 2022, respectively.

Mutual funds are recognized in equity securities on the Condensed Consolidated Balance Sheets and were $ 22 million and $ 21 million as of March 31, 2024 and December 31, 2023, respectively.

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

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

The Company makes investments in structured debt securities issued by VIEs for which it is not the manager.

5 unchanged sentences

The Company recognizes the variable interest in these VIEs at fair value on the Condensed Consolidated Balance Sheets.

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

Commercial and Residential Mortgage Loans

The following table shows commercial mortgage loans, residential mortgage loans, and the respective accrued interest thereon at September 30, 2023 and December 31, 2022 (in millions):

September 30, 2023 December 31, 2022

The following table shows commercial mortgage loans, residential mortgage loans, and the respective accrued interest thereon at March 31, 2024 and December 31, 2023 (in millions):

March 31, 2024 December 31, 2023

Commercial mortgage loans (1)

5 unchanged sentences

(2) Net of an allowance for credit losses of $ 4 million and $ 5 million at each date, respectively.

At September 30, 2023, commercial mortgage loans were collateralized by properties located in 37 states, the District of Columbia, and Europe, while residential mortgage loans were collateralized by properties located in 50 states, the District of Columbia, Mexico, and Europe.

Mortgage Loan Concessions

In response to the generally 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) 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 that 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 $ 9 million at September 30, 2023.

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.

At March 31, 2024, commercial mortgage loans were collateralized by properties located in 36 states, the District of Columbia, and Europe, while residential mortgage loans were collateralized by properties located in 49 states, the District of Columbia, Mexico, and Europe.

Evaluation for Credit Losses on Mortgage Loans

4 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

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

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, gross domestic product growth, and interest rates.

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, gross domestic product 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.

6 unchanged sentences

Mortgage loans on real estate are presented net of the ACL on the Condensed Consolidated Balance Sheets.

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

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

Three Months Ended September 30, 2023 Apartment Hotel Office Retail Warehouse Residential Mortgage Total

Balance at July 1, 2023 $ 18 $ 7 $ 91 $ 26 $ 12 $ 8 $ 162

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

Provision (release) 9 ( 1 ) 30 — 3 ( 3 ) 38

Balance at September 30, 2023 (1)

$ 27 $ 6 $ 121 $ 26 $ 15 $ 5 $ 200

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 September 30, 2022 (1)

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

Nine Months Ended September 30, 2023 Apartment Hotel Office Retail Warehouse Residential Mortgage Total

Three Months Ended March 31, 2024 Apartment Hotel Office Retail Warehouse Residential Mortgage Total

Balance at January 1, 2024 $ 31 $ 5 $ 79 $ 28 $ 17 $ 5 $ 165

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

Additions from purchase of PCD mortgage loans — — — — — — —

Provision (release) 2 1 ( 6 ) — 1 ( 1 ) ( 3 )

Balance at September 30, 2023 (1)

Balance at March 31, 2024 (1)

$ 33 $ 6 $ 73 $ 28 $ 18 $ 4 $ 162

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

Three Months Ended March 31, 2023 Apartment Hotel Office Retail Warehouse Residential Mortgage Total

Balance at January 1, 2023 $ 18 $ 20 $ 15 $ 22 $ 16 $ 4 $ 95

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

Additions from purchase of PCD mortgage loans — — — — — — —

Provision (release) 2 ( 1 ) 52 — ( 5 ) 3 51

Balance at September 30, 2022 (1)

Balance at March 31, 2023 (1)

$ 20 $ 19 $ 67 $ 22 $ 11 $ 7 $ 146

(1) Accrued interest receivable totaled $ 45 million and $ 46 million as of September 30, 2023 and 2022, respectively, and was excluded from the determination of credit losses.

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

(1) Accrued interest receivable totaled $ 47 million and $ 47 million as of March 31, 2024 and 2023, 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.

Accrued interest amounting to $ 2 million and nil were written off as of September 30, 2023 and 2022, respectively, relating to loans that were greater than 90 days delinquent or in the process of foreclosure.

At September 30, 2023, there was $ 23 million of recorded investment, $ 26 million of unpaid principal balance, no related loan allowance, $ 17 million of average recorded investment, and no investment income recognized on impaired residential mortgage loans.

At December 31, 2022, there was $ 15 million of recorded investment, $ 16 million of unpaid principal balance, no related loan allowance, $ 18 million of average recorded investment, and no investment income recognized on impaired residential mortgage loans.

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

September 30, 2023

No accrued interest was written off as of March 31, 2024 and 2023, respectively, relating to loans that were greater than 90 days delinquent or in the process of foreclosure.

The following table provides information about our impaired residential mortgage loans (in millions):

March 31, 2024 December 31, 2023

Recorded investment $ 23 $ 24

Unpaid principal balance 26 27

Related loan allowance 1 1

Average recorded investment 21 19

Investment income recognized — 1

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

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

March 31, 2024

2024 2023 2022 2021 2020 Prior Revolving

17 unchanged sentences

Total mortgage loans $ 100 $ 880 $ 1,107 $ 1,396 $ 779 $ 6,088 $ 4 $ 10,354 100 %

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

December 31, 2023

18 unchanged sentences

Total mortgage loans $ 879 $ 1,140 $ 1,453 $ 855 $ 1,408 $ 4,824 $ 4 $ 10,563 100 %

September 30, 2023

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

March 31, 2024

In Good Standing (1)

21 unchanged sentences

Total $ 10,473 $ — $ 66 $ 24 $ 10,563

(1) At September 30, 2023 and December 31, 2022, includes mezzanine and bridge loans of $ 389 million and $ 410 million in the Apartment category, $ 21 million and $ 41 million in the Hotel category, $ 166 million and $ 236 million in the Office category, $ 31 million and $ 43 million in the Retail category, and $ 295 million and $ 140 million in the Warehouse category, respectively.

(2) At September 30, 2023 and December 31, 2022, includes $ 26 million and $ 41 million of loans purchased when the loans were greater than 90 days delinquent and $ 7 million and $ 12 million of loans in process of foreclosure, and are supported with insurance or other guarantees provided by various governmental programs, respectively.

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

The following table provides information about the mortgage loans modified to borrowers experiencing financial difficulty (in millions, except for percentage information):

(1) At March 31, 2024 and December 31, 2023, includes mezzanine and bridge loans of $ 382 million and $ 391 million in the Apartment category, $ 22 million and $ 21 million in the Hotel category, $ 168 million and $ 171 million in the Office category, $ 32 million and $ 32 million in the Retail category, and $ 315 million and $ 312 million in the Warehouse category, respectively.

(2) At March 31, 2024 and December 31, 2023, includes $ 23 million and $ 22 million of loans purchased when the loans were greater than 90 days delinquent and $ 4 million and $ 5 million of loans in process of foreclosure, are supported with insurance or other guarantees provided by various governmental programs, respectively.

The following table provides information about the mortgage loans modified during the periods indicated to borrowers experiencing financial difficulty (dollars in millions):

Term Extension

Amortized Cost Basis

at September 30, 2023 Percent of

Cost Basis Percent of

March 31, 2024

Commercial mortgage loans $ 27 0.28 %

The following table describes the financial effect of the modifications made to borrowers experiencing financial difficulty:

March 31, 2023

Commercial mortgage loans $ — — %

The following table describes the financial effect of the modifications made to the loans noted above:

Term Extension

Financial Effect

Commercial mortgage loans Granted extension of term for three -years and required partial principal repayment at extension of the loan.

March 31, 2024

Commercial mortgage loans Granted extension of term for three -years and rate converted from variable to 4 % fixed.

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

The Company closely monitors the performance of the loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts.

2 unchanged sentences

Current 30-89 Days Past Due 90+ Days Past Due

March 31, 2024

Commercial mortgage loans $ 43 $ — $ —

As of September 30, 2023 and December 31, 2022, 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 $ 16 million and $ 3 million, respectively.

March 31, 2023

Commercial mortgage loans $ — $ — $ —

As of March 31, 2024 and 2023, stressed mortgage loans for which the Company is dependent, or expects to be dependent, on the underlying property to satisfy repayment were $ 19 million and $ 4 million, respectively.

Policy loans are loans the Company issues to contract holders that use the cash surrender value of their life insurance policy or annuity contract as collateral.

At both September 30, 2023 and December 31, 2022, $ 3.4 billion of these loans were carried at fair value, which the Company believes is equal to unpaid principal balances, plus accrued investment income.

At September 30, 2023 and December 31, 2022, the Company had $ 0.9 billion and $ 1.0 billion, respectively, of policy loans not held as collateral for reinsurance, which were carried at the unpaid principal balances.

At March 31, 2024 and December 31, 2023, $ 3.4 billion and $ 3.5 billion of these loans were carried at fair value, which the Company believes is equal to unpaid principal balances, plus accrued investment income.

At March 31, 2024 and December 31, 2023, the Company had $ 0.9 billion and $ 0.9 billion, respectively, of policy loans not held as collateral for reinsurance, which were carried at the unpaid principal balances.

Other Invested Assets

1 unchanged sentence

FHLBI capital stock is carried at cost and adjusted for any impairment.

At September 30, 2023 and December 31, 2022, FHLB capital stock had a carrying value of $ 108 million and $ 146 million, respectively.

At March 31, 2024 and December 31, 2023, FHLB capital stock had a carrying value of $ 127 million and $ 108 million, respectively.

Real estate is carried at the lower of depreciated cost or fair value and real estate occupied by the Company is carried at depreciated cost.

At September 30, 2023 and December 31, 2022, real estate totaling $ 224 million and $ 237 million, respectively, included foreclosed properties with a book value of $ 2 million and nil at September 30, 2023 and December 31, 2022, respectively.

At March 31, 2024 and December 31, 2023, real estate totaling $ 226 million and $ 226 million, respectively, included foreclosed properties with a book value of $ 7 million and $ 6 million at March 31, 2024 and December 31, 2023, respectively.

Carrying values for LP 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 September 30, 2023 and December 31, 2022, investments in LPs had carrying values of $ 3,221 million and $ 3,212 million, respectively.

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

At March 31, 2024 and December 31, 2023, investments in LPs had carrying values of $ 2.2 billion and $ 2.1 billion, respectively.

Securities Lending

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 September 30, 2023 and December 31, 2022, the estimated fair value of loaned securities was $ 27 million and $ 35 million, respectively.

As of March 31, 2024 and December 31, 2023, the estimated fair value of loaned securities was $ 20 million and $ 19 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 September 30, 2023 and December 31, 2022, cash collateral received in the amount of $ 28 million and $ 36 million, respectively, was invested by the agent banks and included in cash and cash equivalents of the Company.

At March 31, 2024 and December 31, 2023, cash collateral received in the amount of $ 21 million and $ 19 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.

The following table present information regard these transactions for the nine months ended September 30, 2023 and 2022 (in millions, except percentage data):

Nine Months Ended September 30,

Highest level of short-term borrowings at any month end $ 1,660 $ 584

Average short-term borrowing 1,172 186

Weighted average interest rate 4.66 % 0.24 %

At September 30, 2023 and December 31, 2022, the outstanding repurchase agreement balance was nil and $ 1,012 million, respectively, collateralized with U.S.

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

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

At March 31, 2024 and December 31, 2023, the outstanding repurchase agreement balance was $ 1.8 billion and nil , collateralized with U.S.

Treasury securities and corporate securities of $ 1.8 billion and nil 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 $ 16 million and $ 41 million for the three and nine months ended September 30, 2023, respectively, and nil for both the three and nine months ended September 30, 2022, respectively.

Interest expense totaled $ 19 million and $ 8 million for the three months ended March 31, 2024, and 2023, respectively, and is included within net investment income.

Collateral Upgrade Transactions

During the three months ended March 31, 2024, Jackson executed certain paired repurchase and reverse repurchase transactions (“collateral upgrade” transactions) totaling $ 1.5 billion pursuant to master repurchase agreements with participating bank counterparties.

Under these collateral upgrade transactions, the Company lends securities (e.g., corporate debt securities or other securities agreed upon between the parties) to bank counterparties in exchange for U.S.

Treasury securities that the Company then uses to provide as collateral.

The paired repurchase and reverse repurchase transactions are settled on a net basis in accordance with master netting agreements.

As a result, there was no cash exchanged at initiation of these agreements.

The paired transactions are reported net within the Condensed Consolidated Balance Sheets.

These transactions do not have a stated maturity and require at least 150 -days' notice prior to termination of the transaction.

At March 31, 2024 and December 31, 2023, the fair value of the U.S.

treasuries received was $ 1.5 billion and nil , collateralized with corporate securities with a fair value of $ 1.6 billion and nil .

Subsequently, the Company provided these U.S.

Treasury securities as collateral for derivative trades and they are included as part of the derivative collateral disclosures.

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.

Gross interest income of $ 12 million and nil and gross interest expense of $ 13 million and nil for the three months ended March 31, 2024, and 2023, respectively, are included within net investment income.

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

Derivative Instruments

The Company’s business model includes the acceptance, monitoring and mitigation of risk.

3 unchanged sentences

As a result, freestanding derivatives are carried at fair value with changes recorded in net gains (losses) on derivatives and investments.

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, 2022 information recast for the adoption of LDTI):

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

Derivative Instruments

September 30, 2023

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):

March 31, 2024

Contractual/ Assets Liabilities Net

3 unchanged sentences

Cross-currency swaps $ 1,665 $ 95 $ 140 $ ( 45 )

Equity index call options 8,000 62 — 62

Equity index futures (2)

32 unchanged sentences

Cross-currency swaps $ 1,665 $ 123 $ 116 $ 7

Equity index call options 17,500 106 — 106

Equity index futures (2)

1 unchanged sentence

Interest rate swaps 6,228 5 132 ( 127 )

Interest rate swaps - cleared (2)

Put-swaptions 23,500 153 905 ( 752 )

Interest rate futures (2)

105,261 — — —

Total return swaps 1,599 1 23 ( 22 )

21 unchanged sentences

Derivative Instruments

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, 2022 information recast for the adoption of LDTI):

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

2023 2022 2023 2022

Three Months Ended March 31,

Derivatives excluding funds withheld under reinsurance treaties

18 unchanged sentences

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, 2023 and December 31, 2022, the fair value of the Company’s net non-cleared, over-the-counter derivative assets by counterparty were $ 554 million and $ 885 million, respectively, and held collateral was $ 502 million and $ 858 million, respectively, related to these agreements.

At September 30, 2023 and December 31, 2022, the fair value of the Company’s net non-cleared, over-the-counter derivative liabilities by counterparty were $ 2,177 million and $ 1,680 million, respectively, and provided collateral was $ 2,399 million and $ 1,650 million, respectively, related to these agreements.

If all the downgrade provisions had been triggered at September 30, 2023 and December 31, 2022, in aggregate, the Company would have had to disburse nil and $ 30 million, respectively, and would have been allowed to claim $ 274 million and $ 27 million, respectively.

At March 31, 2024 and December 31, 2023, the fair value of the Company’s net non-cleared, over-the-counter derivative assets by counterparty were $ 108 million and $ 117 million, respectively, and held collateral was $ 92 million and $ 841 million, respectively, related to these agreements.

At March 31, 2024 and December 31, 2023, the fair value of the Company’s net non-cleared, over-the-counter derivative liabilities by counterparty were $ 1,183 million and $ 937 million, respectively, and provided collateral was $ 1,382 million and $ 751 million, respectively, related to these agreements.

If all the downgrade provisions had been triggered at March 31, 2024 and December 31, 2023, in aggregate, the Company would have had to disburse nil and $ 910 million, respectively, and would have been allowed to claim $ 215 million and nil , respectively.

The Company pledged collateral of $ 2,294 million and $ 2,616 million as of March 31, 2024 and December 31, 2023, respectively, for initial margin related to uncleared margin for over-the-counter derivatives and exchange-traded futures.

Variation margin on exchange traded futures is settled through the netting of cash paid/received for variation margin against the fair value of the trades.

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):

September 30, 2023

March 31, 2024

Recognized Gross

9 unchanged sentences

Financial Assets:

Freestanding derivative

assets $ 925 $ — $ 925 $ 372 $ 449 $ 51 $ 53

Freestanding derivative assets $ 213 $ — $ 213 $ 105 $ 91 $ — $ 17

Financial Liabilities:

Freestanding derivative

liabilities $ 2,548 $ — $ 2,548 $ 372 $ — $ 2,153 $ 23

Freestanding derivative liabilities $ 1,288 $ — $ 1,288 $ 105 $ — $ 1,182 $ 1

Securities loaned 21 — 21 — 21 — —

Repurchase agreements 1,799 — 1,799 — — 1,799 —

Repurchase agreements - collateral upgrade 1,498 ( 1,498 ) — — — — —

Total financial liabilities $ 4,606 $ ( 1,498 ) $ 3,108 $ 105 $ 21 $ 2,981 $ 1

14 unchanged sentences

Financial Assets:

Freestanding derivative

assets $ 1,270 $ — $ 1,270 $ 385 $ 683 $ 157 $ 45

Freestanding derivative assets $ 390 $ — $ 390 $ 273 $ 108 $ — $ 9

Financial Liabilities:

Freestanding derivative

liabilities $ 2,065 $ — $ 2,065 $ 385 $ — $ 1,638 $ 42

Freestanding derivative liabilities $ 1,210 $ — $ 1,210 $ 273 $ 6 $ 744 $ 187

Securities loaned 19 — 19 — 19 — —

5 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 $ 1,632 million and $ 1,136 million as of September 30, 2023 and December 31, 2022, respectively, as these derivatives are not subject to master netting arrangements.

The above tables also exclude the funds withheld embedded derivative asset (liability) of $ 3,352 million and $ 3,158 million at September 30, 2023 and December 31, 2022.

The above tables exclude net embedded derivative liabilities of $ 2,568 million and $ 2,090 million as of March 31, 2024 and December 31, 2023, respectively, as these derivatives are not subject to master netting arrangements.

The above tables also exclude the funds withheld embedded derivative asset (liability) of $ 2,496 million and $ 2,468 million at March 31, 2024 and December 31, 2023.

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

1 unchanged sentence

Fair Value Measurements

The following table summarizes the fair value and carrying value of the Company’s financial instruments (in millions, 2022 information recast for the adoption of LDTI):

September 30, 2023 December 31, 2022

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

March 31, 2024 December 31, 2023

Value Carrying

40 unchanged sentences

Typical inputs used by these three pricing methods include reported trades, benchmark yields, credit spreads, liquidity premiums and/or estimated cash flows based on default and prepayment assumptions.

As a result of typical trading volumes and the lack of specific quoted market prices for most debt securities, independent pricing services will normally derive the security prices through recently reported trades for identical or similar securities, making adjustments through the reporting date based upon available market observable information as outlined above.

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

Fair Value Measurements

making adjustments through the reporting date based upon available market observable information as outlined above.

If there are no recently reported trades, the independent pricing services and broker-dealers may use matrix or pricing model processes to develop a security price where future cash flow expectations are developed based upon collateral performance and discounted at relevant market rates.

there are no recently reported trades, the independent pricing services and broker-dealers may use matrix or pricing model processes to develop a security price where future cash flow expectations are developed based upon collateral performance and discounted at relevant market rates.

Certain securities are priced using broker-dealer quotes, which may utilize proprietary inputs and models.

Additionally, the majority of these quotes are non-binding.

These securities are classified as Level 3 in the fair value hierarchy.

Included in the pricing of asset-backed securities are estimates of the rate of future prepayments of principal over the remaining life of the securities.

10 unchanged sentences

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 September 30, 2023 and December 31, 2022, 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 March 31, 2024 and December 31, 2023, 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.

Cash flows, as estimated by the Company using issuer-specific default statistics and prepayment assumptions, are discounted to determine an estimated fair value.

On an ongoing basis, the Company reviews the independent pricing services’ valuation methodologies and related inputs and evaluates the various types of securities in its investment portfolio to determine an appropriate fair value hierarchy distribution based upon trading activity and the observability of market inputs.

Based on the results of this evaluation, each price is classified into Level 1, 2, or 3.

Most prices provided by independent pricing services, including broker-dealer quotes, are classified into Level 2 due to their use of market observable inputs.

Most prices provided by independent pricing services are classified into Level 2 due to their use of market observable inputs.

Limited Partnerships

Fair values for limited partnership interests, which are included in other invested assets, are 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 September 30, 2023 and December 31, 2022.

No adjustments to these amounts were deemed necessary at March 31, 2024 and December 31, 2023.

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

16 unchanged sentences

Changes in fair value are included in net gains (losses) on derivatives and investments.

Freestanding derivatives priced using third-party pricing services incorporate inputs that are predominantly observable in the market.

Freestanding derivatives priced using third-party pricing services incorporate inputs that are observable in the market.

Inputs used to value derivatives include interest rate swap curves, credit spreads, interest rates, counterparty credit risk, equity volatility and equity index levels.

6 unchanged sentences

Cash and cash equivalents primarily include money market instruments and bank deposits.

Cash equivalents also includes all highly liquid securities and other investments purchased with an original or remaining maturity of three months or less at the date of purchase.

Cash equivalents also include all highly liquid securities and other investments purchased with an original or remaining maturity of three months or less at the date of purchase.

Certain money market instruments are valued using unadjusted quoted prices in active markets and are classified as Level 1.

9 unchanged sentences

Variable Annuities

Variable annuity contracts issued by the Company may include various guaranteed minimum death, withdrawal, income and accumulation benefits, which are classified as MRBs and measured at fair value.

Variable annuity contracts issued by the Company may include various guaranteed minimum death, withdrawal, income and accumulation benefits, which are classified as market risk benefits ("MRBs") and measured at fair value.

Our MRB assets and MRB liabilities are reported separately on our Condensed Consolidated Balance Sheets.

2 unchanged sentences

However, the change in fair value related to our own non-performance risk is recognized as a component of other comprehensive income ("OCI") and is reported in Change in non-performance on market risk benefits, net of tax expense (benefit) on the Condensed Consolidated Statements of Comprehensive Income (Loss).

Variable annuity guaranteed benefit features classified as MRBs, which have explicit fees, are measured using the attributed fee method.

Under the attributed fee method, fair value is measured as the difference between the present value of projected future liabilities and the present value of projected attributed fees.

The fair value of variable annuity guaranteed benefit features classified as MRBs, which have explicit fees, are measured using the attributed fee method as the difference between the present value of projected future liabilities and the present value of projected attributed fees.

At the inception of the contract, the Company attributes to the MRB a portion of total fees expected to be assessed against the contract holder's account value to offset the projected claims over the lifetime of the contract.

18 unchanged sentences

Fair Value Measurements

At each valuation date, the fair value calculation reflects expected returns based on constant maturity treasury rates as of that date to determine the value of expected future cash flows produced in a stochastic process.

At each valuation date, the fair value calculation reflects expected returns based on treasury rates as of that date to determine the value of expected future cash flows produced in a stochastic process.

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.

15 unchanged sentences

At inception, the value of the MRB is deducted from the value of the contract resulting in no gain or loss.

See Note 12 of the Notes to Condensed Consolidated Financial Statements for more information regarding MRBs.

See Note 12 - Market Risk Benefits of the Notes to Condensed Consolidated Financial Statements for more information regarding MRBs.

Fixed Index Annuities

The fair value of the index-linked crediting derivative feature embedded in fixed index annuities, included in Annuity Reserves in the above tables, is calculated using the closed form Black-Scholes Option Pricing model or Monte Carlo simulations, as appropriate for the type of option, incorporating such factors as the volatility of returns, the level of interest rates and the time remaining until the option expires.

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

Additionally, although not a significant input, assumed withdrawal rates are used to estimate the expected volume of embedded options that will be realized by policyholders.

The fair value of the index-linked crediting derivative feature embedded in RILAs, included in Annuity Reserves in the above table, is calculated using the closed form Black-Scholes Option Pricing model, incorporating such factors as the volatility of returns, the level of interest rates and the time remaining until the option expires.

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

Additionally, although not a significant input, assumed withdrawal rates are used to estimate the expected volume of embedded options that will be realized by policyholders.

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

5 unchanged sentences

Fair Value Option

The Company elected the fair value option for debt securities related to certain consolidated investments totaling $ 2,101 million and $ 2,014 million at September 30, 2023 and December 31, 2022, respectively.

The Company elected the fair value option for debt securities related to certain consolidated investments totaling $ 2,165 million and $ 2,037 million at March 31, 2024 and December 31, 2023, 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 $ 4,052 million and $ 4,160 million at September 30, 2023 and December 31, 2022, 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 $ 3,994 million and $ 4,054 million at March 31, 2024 and December 31, 2023, 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 with Athene.

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, December 31,

March 31, December 31,

Fair value $ 455 $ 481

Aggregate contractual principal 467 491

As of September 30, 2023, no loans in good standing 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.

The Company elected the fair value option for notes issued by consolidated VIEs totaling $ 2,011 million and $ 1,732 million at September 30, 2023 and December 31, 2022, respectively.

As of March 31, 2024, no loans in good standing 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.

The Company elected the fair value option for notes issued by consolidated VIEs totaling $ 2,068 million and $ 1,988 million at March 31, 2024 and December 31, 2023, respectively.

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.

2 unchanged sentences

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, 2022 information recast for the adoption of LDTI):

September 30, 2023

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

March 31, 2024

Total Level 1 Level 2 Level 3

10 unchanged sentences

Limited partnerships (1)

564 — 140 424

Policy loans 3,448 — — 3,448

8 unchanged sentences

Funds withheld payable under reinsurance treaties (3)

1,122 — — 1,122

Freestanding derivative instruments 1,288 — 1,288 —

30 unchanged sentences

Funds withheld payable under reinsurance treaties (3)

1,158 — — 1,158

Freestanding derivative instruments 1,210 — 1,210 —

9 unchanged sentences

Level 3 Assets and Liabilities by Price Source

The table below presents the balances of Level 3 assets and liabilities measured at fair value with their corresponding pricing sources (in millions, 2022 information recast for the adoption of LDTI):

September 30, 2023

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

March 31, 2024

Assets Total Internal External

Debt securities:

Other government securities

$ 152 $ — $ 152

Public utilities

Other asset-backed securities

Equity securities

6 unchanged sentences

Funds withheld payable under reinsurance treaties (1)

1,122 1,122 —

Market risk benefit liabilities 3,843 3,843 —

4 unchanged sentences

Debt securities:

$ 56 $ — $ 56

Other government securities $ 150 $ — $ 150

Public utilities 41 41 —

Other asset-backed securities

Equity securities

6 unchanged sentences

Funds withheld payable under reinsurance treaties (1)

1,158 1,158 —

Market risk benefit liabilities 4,785 4,785 —

5 unchanged sentences

Quantitative Information Regarding Internally-Priced Level 3 Assets and Liabilities

The table below presents quantitative information on internally-priced Level 3 assets and liabilities that use significant unobservable inputs (in millions, 2022 information recast for the adoption of LDTI):

As of September 30, 2023

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

As of March 31, 2024

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

7 unchanged sentences

47.50 % - 50.00 %

Non-performance risk (5)

Non-performance risk adjustment (5)

0.21 % - 1.39 %

7 unchanged sentences

11.25 % - 100.00 %

Non-performance risk (5)

Non-performance risk adjustment (5)

1.15 % - 1.94 %

7 unchanged sentences

11.25 % - 100.00 %

Non-performance risk (5)

Non-performance risk adjustment (5)

1.15 % - 1.94 %

24 unchanged sentences

47.50 % - 50.00 %

Non-performance risk (5)

Non-performance risk adjustment (5)

0.10 % - 1.50 %

Long-term Equity Volatility (6)

18.50 % - 23.68 %

Market risk benefit assets $ 6,737 Discounted cash flow Mortality (1)

5 unchanged sentences

11.25 % - 100.00 %

Non-performance risk (5)

Non-performance risk adjustment (5)

0.70 % - 2.11 %

Long-term Equity Volatility (6)

18.50 % - 23.68 %

Market risk benefit liabilities $ 4,785 Discounted cash flow Mortality (1)

5 unchanged sentences

11.25 % - 100.00 %

Non-performance risk (5)

Non-performance risk adjustment (5)

0.70 % - 2.11 %

Long-term Equity Volatility (6)

18.50 % - 23.68 %

(1) Mortality rates vary by attained age, tax qualification status, guaranteed benefit election, and duration.

15 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 September 30, 2023 and December 31, 2022, securities of $ 2 million and $ 9 million, respectively, are fair valued using techniques incorporating unobservable inputs and are classified in Level 3 of the fair value hierarchy.

At March 31, 2024 and December 31, 2023, securities of $ 90 million and $ 93 million, respectively, are fair valued using techniques incorporating unobservable inputs and are classified in Level 3 of the fair value hierarchy.

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.

15 unchanged sentences

Fair Value Measurements

The tables below, 2022 information recast for the adoption of LDTI, provide roll-forwards for the three and nine months ended September 30, 2023 and 2022 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 months ended March 31, 2024, and 2023 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 Net Other Issuances in and/or as of

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

Three Months Ended September 30, 2023 2023 (Loss) Income (Loss) Settlements Level 3 2023

January 1, Income Comprehensive and (out of) March 31,

Three Months Ended March 31, 2024 2024 (Loss) Income (Loss) Settlements Level 3 2024

Debt securities

Other government securities $ 150 $ — $ 2 $ — $ — $ 152

Public utilities 41 — — 3 — 44

Corporate securities 83 — — 5 6 94

Other asset-backed securities 975 ( 1 ) — 14 — 988

Equity securities 8 — — — — 8

1 unchanged sentence

Limited partnerships 135 2 — — — 137

Reinsurance recoverable on market risk benefits 194 ( 27 ) — — — 167

Market risk benefit assets 5,957 858 — — — 6,815

Policy loans 3,457 29 — ( 38 ) — 3,448

Funds withheld payable under reinsurance treaties ( 701 ) 481 — ( 27 ) — ( 247 )

Market risk benefit liabilities ( 4,463 ) 1,545 ( 999 ) — — ( 3,917 )

Total Realized/Unrealized Gains (Losses) Included in

Fair Value Sales, Transfers Fair Value

as of Net Other Issuances in and/or as of

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

Three Months Ended September 30, 2022 2022 (Loss) Income (Loss) Settlements Level 3 2022

Debt securities

Corporate securities $ 47 $ ( 5 ) $ ( 1 ) $ 10 $ 26 $ 77

Equity securities 124 ( 6 ) — ( 11 ) — 107

Mortgage loans 357 ( 7 ) — 158 — 508

Limited partnerships 396 — — — — 396

Reinsurance recoverable on market risk benefits 149 ( 23 ) — — — 126

Market risk benefit assets 6,737 1,288 — — — 8,025

Policy loans 3,485 ( 27 ) — 29 — 3,487

Funds withheld payable under reinsurance treaties ( 1,158 ) ( 1 ) — 37 — ( 1,122 )

Market risk benefit liabilities ( 4,785 ) 1,452 ( 510 ) — — ( 3,843 )

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

Fair Value Measurements

Total Realized/Unrealized Gains (Losses) Included in

1 unchanged sentence

as of Net Other Issuances in and/or as of

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

Nine Months Ended September 30, 2023 2023 (Loss) Income (Loss) Settlements Level 3 2023

January 1, Income Comprehensive and (out of) March 31,

Three Months Ended March 31, 2023 2023 (Loss) Income (Loss) Settlements Level 3 2023

Debt securities

3 unchanged sentences

Limited partnerships 440 4 — 11 ( 7 ) 448

Reinsurance recoverable on market risk benefits 221 ( 54 ) — — — 167

Market risk benefit assets 4,865 1,950 — — — 6,815

Policy loans 3,419 29 — ( 21 ) — 3,427

Funds withheld payable under reinsurance treaties ( 424 ) 119 — 58 — ( 247 )

Market risk benefit liabilities ( 5,662 ) 3,224 ( 1,479 ) — — ( 3,917 )

Total Realized/Unrealized Gains (Losses) Included in

Fair Value Sales, Transfers Fair Value

as of Net Other Issuances in and/or as of

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

Nine Months Ended September 30, 2022 2022 (Loss) Income (Loss) Settlements Level 3 2022

Debt securities

Corporate securities $ 9 $ — $ ( 1 ) $ 13 $ 56 $ 77

Equity securities 112 10 — ( 15 ) — 107

Mortgage loans — ( 10 ) — 518 — 508

Limited partnerships 396 — — — — 396

Reinsurance recoverable on market risk benefits 221 17 — — — 238

Market risk benefit assets 4,865 339 — — — 5,204

Policy loans 3,467 109 — ( 89 ) — 3,487

Funds withheld payable under reinsurance treaties ( 424 ) ( 399 ) — 20 — ( 803 )

2 unchanged sentences

Fair Value Measurements

The components of the amounts included in purchases, sales, issuances and settlements for the three and nine months ended September 30, 2023 and 2022 shown above are as follows (in millions):

Three Months Ended September 30, 2023 Purchases Sales Issuances Settlements Total

Debt securities

Corporate securities $ 27 $ ( 5 ) $ — $ — $ 22

Equity securities — — — — —

Mortgage loans 45 ( 73 ) — — ( 28 )

Limited partnerships 1 ( 11 ) — — ( 10 )

Policy loans — — 76 ( 50 ) 26

Total $ 73 $ ( 89 ) $ 76 $ ( 50 ) $ 10

Funds withheld payable under reinsurance treaties $ — $ — $ ( 96 ) $ 69 $ ( 27 )

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

The components of the amounts included in purchases, sales, issuances and settlements for the three months ended March 31, 2024, and 2023 shown above are as follows (in millions):

Three Months Ended March 31, 2024 Purchases Sales Issuances Settlements Total

Debt securities

Public utilities $ 3 $ — $ — $ — $ 3

Corporate securities 13 ( 8 ) — — 5

Other asset-backed securities 74 ( 60 ) — — 14

Equity securities — — — — —

3 unchanged sentences

Funds withheld payable under reinsurance treaties $ — $ — $ ( 160 ) $ 197 $ 37

Nine Months Ended September 30, 2023 Purchases Sales Issuances Settlements Total

Three Months Ended March 31, 2023 Purchases Sales Issuances Settlements Total

Debt securities

6 unchanged sentences

Funds withheld payable under reinsurance treaties $ — $ — $ ( 35 ) $ 55 $ 20

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

Debt securities

Corporate securities $ 15 $ ( 2 ) $ — $ — $ 13

Equity securities 1 ( 16 ) — — ( 15 )

Mortgage loans 519 ( 1 ) — — 518

Policy loans — — 105 ( 194 ) ( 89 )

Total $ 535 $ ( 19 ) $ 105 $ ( 194 ) $ 427

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

For the three months ended March 31, 2024, transfers from Level 3 to Level 2 of the fair value hierarchy were $ 9 million, transfers from Level 2 to Level 3 were $ 15 million.

For the three months ended March 31, 2023, transfers from Level 3 to Level 2 of the fair value hierarchy were $ 37 million, transfers from Level 2 to Level 3 were $ 11 million, and transfers from Level 3 to NAV were $ 7 million .

During 2023, management determined that the fair value measurements for certain securities, primarily comprised of asset-backed and other debt securities included in funds withheld accounts, which were classified as Level 2 measurements within the fair value hierarchy in prior reporting periods, should be classified as Level 3 fair value measurements.

The fair value of these securities is primarily obtained from external sources which may use unobservable inputs, proprietary inputs and models, or inputs or values that cannot be corroborated by market transactions and should be classified as externally priced Level 3 fair value measurements.

The 2023 Fair Value on a Recurring Basis table and the Level 3 Assets and Liabilities by Price Source table reflect this change in classification.

In the fourth quarter of 2023, securities totaling $ 1,336 million, that were previously reported as Level 3 were included in “Transfers in and/or (out of) Level 3”.

For the three months ended March 31, 2023, the Level 3 Rollforward table and the Level 3 Purchases, Sales, Issuances, and Settlements tables are shown as previously reported and do not reflect this change in classification.

The change in classification did not change the fair value of these securities and did not impact the Condensed Consolidated Balance Sheets or Condensed Consolidated Income Statements.

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

Fair Value Measurements

For the three and nine months ended September 30, 2023, transfers from Level 3 to Level 2 of the fair value hierarchy were $( 12 ) million and $ 19 million, respectively, transfers from Level 2 to Level 3 were $( 9 ) million and $( 1 ) million, respectively, and transfers from Level 3 to NAV were $( 29 ) million and $( 22 ) million, respectively.

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, and no transfers from Level 3 to NAV.

The portion of gains (losses) included in net income (loss) or OCI attributable to the change in unrealized gains and losses on Level 3 financial instruments still held was as follows (in millions, 2022 information recast for the adoption of LDTI):

Three Months Ended September 30,

The portion of gains (losses) included in net income (loss) or 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 March 31,

Net Income Included in OCI Included in

1 unchanged sentence

Debt securities

Other government securities $ — $ 2 $ — $ —

Corporate securities ( 1 ) — — ( 1 )

Other asset-backed securities ( 1 ) — — —

Equity securities — — ( 10 ) —

1 unchanged sentence

Limited partnerships — — 10 —

Reinsurance recoverable on market risk benefits ( 27 ) — ( 45 ) —

Market risk benefit assets 858 — 703 —

Policy loans 29 — 29 —

Funds withheld payable under reinsurance treaties 481 — 857 —

Market risk benefit liabilities 1,545 ( 999 ) 255 552

Nine Months Ended September 30,

Net Income Included in OCI Included in

Net Income Included in OCI

Debt securities

Corporate securities $ ( 7 ) $ — $ — $ ( 1 )

Equity securities ( 37 ) — 10 —

Mortgage loans ( 7 ) — ( 10 ) —

Limited partnerships ( 39 ) — — —

Reinsurance recoverable on market risk benefits ( 23 ) — 17 —

Market risk benefit assets 1,288 — 339 —

Policy loans 75 — 109 —

Funds withheld payable under reinsurance treaties ( 1 ) — ( 399 ) —

4 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):

September 30, 2023

March 31, 2024

Value Total Level 1 Level 2 Level 3

11 unchanged sentences

Funds withheld payable under reinsurance treaties 18,122 18,122 — — 18,122

Debt 2,635 2,322 — 2,322 —

Long-term debt 2,033 1,829 — 1,829 —

Securities lending payable (3)

FHLB advances 180 180 — 180 —

Repurchase agreements (3)

1,799 1,799 — 1,799 —

Separate account liabilities (5)

14 unchanged sentences

Funds withheld payable under reinsurance treaties 18,794 18,794 — — 18,794

Debt 2,635 2,344 — 2,344 —

Long-term debt 2,037 1,851 — 1,851 —

Securities lending payable (3)

Repurchase agreements 1,012 1,012 — 1,012 —

FHLB advances (4)

250 250 — 250 —

Separate account liabilities (5)

2 unchanged sentences

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

(3) Included as a component of repurchase agreements and securities lending payable on the Condensed Consolidated Balance Sheets.

(4) Included as a component of other liabilities on the Condensed Consolidated Balance Sheets.

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

1 unchanged sentence

Fair Value Measurements

The following is a discussion of the methodologies used to determine fair values of the financial instruments measured on a nonrecurring basis reported in the table above.

The following is a discussion of the methodologies used to determine fair values of the financial instruments that are not reported at fair value reported in the table above:

Mortgage Loans

21 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 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 and the funds withheld payable is classified in its entirety according to the lowest level input that is significant to the determination of the fair value.

The funds withheld payable is classified as Level 3 within the fair value hierarchy.

Fair values for the Company’s surplus notes and long-term debt are generally determined by prices obtained from independent broker dealers or discounted cash flow models.

12 unchanged sentences

Deferred Acquisition Costs

This note contains the new accounting policy for the adoption of LDTI

Certain costs that are directly related to the successful acquisition of new or renewal insurance business are capitalized as DAC in the period they are incurred.

Certain costs that are directly related to the successful acquisition of new or renewal insurance business are capitalized as deferred acquisition costs ("DAC") in the period in which they are incurred.

These costs primarily pertain to commissions and certain costs associated with policy issuance and underwriting.

12 unchanged sentences

Substantially unchanged contracts are treated as a continuation of the replaced contract, with no change to the unamortized DAC at the time of the replacement.

The following table presents the roll-forward of the DAC (in millions, 2022 information recast for the adoption of LDTI).

The following table presents the roll-forward of the DAC (in millions).

The current period amortization is based on the end of the period estimates of mortality and persistency.

2 unchanged sentences

Deferred Acquisition Costs

Nine Months Ended September 30, Year Ended December 31,

Three Months Ended March 31, Year Ended December 31,

Variable Annuities

7 unchanged sentences

Total balance, end of period $ 12,173 $ 12,302

This note contains the new accounting policy for the adoption of LDTI.

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

8 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 $ 181 million at September 30, 2023.

Swiss Re Reinsurance

4 unchanged sentences

These include both direct and assumed accident and health businesses, direct and assumed life insurance business, and certain institutional annuities.

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 8.

GMIB Reinsurance

3 unchanged sentences

The Company discontinued offering the GMIB in 2009.

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 8.

Reinsurance Recoverables and Reinsured Market Risk Benefits

3 unchanged sentences

The Company regularly monitors the financial strength ratings of its reinsurers.

At September 30, 2023 and December 31, 2022, the Company had an allowance for credit losses (“ACL”) of $ 33 million and $ 15 million, respectively, on its reinsurance recoverables, which are reported net of ACL on the Condensed Consolidated Balance Sheets.

At March 31, 2024 and December 31, 2023, the Company had an allowance for credit losses (“ACL”) of $ 30 million and $ 29 million, respectively, on its reinsurance recoverables, which are reported net of ACL on the Condensed Consolidated Balance Sheets.

The ACL considers the credit quality of the reinsurer and is generally determined based on probability of default and loss given default assumptions, after considering any applicable collateral arrangements.

During the second quarter, the Company increased its ACL related to a specific reinsurer which was recently ordered into liquidation.

The recognized ACL represents our current best estimate of our remaining loss exposure associated with this reinsurer.

For reinsurance recoverables that are collateralized, and the amount of collateral is expected to be adjusted as necessary as a result of fair value changes in the collateral, the Company determines that the expectation of nonpayment of the carrying value of the reinsurance recoverable is zero.

8 unchanged sentences

Guaranteed benefits related to the optional lifetime income rider offered on certain fixed index annuities are MRBs that are reinsured with Athene.

The reinsured MRBs are measured using a non-option valuation approach which uses cash flow assumptions and an attributed fee ratio consistent with those used to measure the MRBs on the direct contract and a discount rate that considered the reinsurer’s credit risk.

The attributed fee is locked-in at inception of the contract.

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 8.

Components of the Company’s reinsurance recoverable excluding MRBs were as follows (in millions, 2022 information recast for the adoption of LDTI):

September 30, December 31,

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

March 31, December 31,

Life $ 5,293 $ 5,370

5 unchanged sentences

(1) Other annuity benefits primarily attributable to fixed and fixed index annuities reinsured with Athene.

Components of the Company’s reinsurance recoverable on market risk benefits were as follows (in millions, 2022 information recast for the adoption of LDTI):

September 30, December 31,

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

March 31, December 31,

Variable annuity $ 72 $ 90

11 unchanged sentences

At inception of the reinsurance agreement with Athene, the fair value of the withheld investments differed from their book value and, accordingly, while the investments are held, the amortization of this difference is reported in net gains (losses) on derivatives and investments in the Condensed Consolidated Income Statements.

See Note 5 - Derivative Instruments of the Notes to Consolidated Financial Statements for more information on the embedded derivative.

Funds withheld under reinsurance agreements with SRZ

5 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):

September 30, December 31,

March 31, December 31,

Debt securities, available-for-sale $ 11,070 $ 11,526

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 $ 3,352 million and $ 3,158 million at September 30, 2023 and December 31, 2022, respectively.

(2) Includes funds withheld embedded derivative asset (liability) of $ 2,496 million and $ 2,468 million at March 31, 2024 and December 31, 2023, 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 September 30, Nine Months Ended September 30,

2023 2022 2023 2022

Three Months Ended March 31,

Debt securities (1)

$ 162 $ 178 $ 494 $ 508

Equity securities 9 ( 1 )

Mortgage loans (2)

48 59 174 160

Policy loans 82 81

5 unchanged sentences

Total net investment income on funds withheld reinsurance treaties $ 270 $ 307

(1) Includes $ 1 million and $ 3 million for the three and nine months ended September 30, 2023, respectively, and $( 3 ) million and $( 11 ) million for the three and nine months ended September 30, 2022, respectively, related to the change in fair value for securities carried under the fair value option.

(2) Includes $( 5 ) million and $( 7 ) million for the three and nine months ended September 30, 2023, respectively, and $( 7 ) million and $( 10 ) million for the three and nine months ended September 30, 2022, respectively, related to the change in fair value for mortgage loans carried under the fair value option.

(1) Includes $ 1 million and $ 2 million for the three months ended March 31, 2024 and 2023, respectively, related to the change in fair value for securities carried under the fair value option.

(2) Includes $( 2 ) million and $( 2 ) million for the three months ended March 31, 2024 and 2023, 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 September 30, Nine Months Ended September 30,

2023 2022 2023 2022

Three Months Ended March 31,

Available-for-sale securities

9 unchanged sentences

Total net gains (losses) on derivatives and investments $ ( 201 ) $ ( 673 )

(1) Includes the Athene embedded derivative gain (loss) of $ 451 million and $ 194 million for the three and nine months ended September 30, 2023, respectively, and $ 824 million and $ 3,452 million for the three and nine months ended September 30, 2022, respectively.

(1) Includes the Athene embedded derivative gain (loss) of $ 29 million and $( 370 ) million for the three months ended March 31, 2024 and 2023, respectively.

Reserves for Future Policy Benefits and Claims Payable

This note contains the new accounting policy for the adoption of LDTI.

Reserves for Future Policy Benefits

32 unchanged sentences

This adjustment, along with the change in net unrealized gains (losses) on available-for-sale debt securities, net of applicable tax, is credited or charged directly to equity as a component of OCI.

See Note 10 of the Notes to Condensed Consolidated Financial Statements for more information regarding other contract holder funds.

See Note 10 - Other Contract Holder Funds of the Notes to Condensed Consolidated Financial Statements for more information regarding other contract holder funds.

Other Future Policy Benefits and Claims Payable

6 unchanged sentences

Reserves for Future Policy Benefits and Claims Payable

The following table summarizes the Company’s reserves for future policy benefits and claims payable balances (in millions, 2022 information recast for the adoption of LDTI):

September 30, December 31,

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

March 31, December 31,

Reserves for future policy benefits

7 unchanged sentences

Reserves for future policy benefits and claims payable $ 11,585 $ 11,898

The following tables present the roll-forward of components of reserves for future policy benefits (in millions, 2022 information recast for the adoption of LDTI):

The following tables present the roll-forward of components of reserves for future policy benefits (in millions):

Present Value of Expected Net Premiums

Nine Months Ended September 30, Year Ended December 31,

Three Months Ended March 31, Year Ended December 31,

Payout Closed Block Closed Block Payout Closed Block Closed Block

15 unchanged sentences

Present Value of Expected Future Policy Benefits

Nine Months Ended September 30, Year Ended December 31,

Three Months Ended March 31, Year Ended December 31,

Payout Closed Block Closed Block Payout Closed Block Closed Block

2 unchanged sentences

Beginning of period cumulative effect of changes in discount rate assumptions 99 767 185 132 958 275

Beginning balance at original discount rate (including DPL of $ 40 , $ 0 and $ 671 in September 30, 2023, and $ 38 , $ 0 and $ 459 in December 31, 2022 for payout annuities, closed block life and closed block annuity, respectively)

Beginning balance at original discount rate (including DPL of $ 42 , $ 0 and $ 626 in March 31, 2024, and $ 40 , $ 0 and $ 671 in December 31, 2023 for payout annuities, closed block life and closed block annuity, respectively)

1,189 5,901 4,400 1,174 6,406 4,709

5 unchanged sentences

Benefits payments ( 34 ) ( 177 ) ( 121 ) ( 129 ) ( 685 ) ( 493 )

Ending balance of original discount rate (including DPL of $ 40 , $ 0 and $ 637 in September 30, 2023, and $ 40 , $ 0 and $ 671 in December 31, 2022 for payout annuities, closed block life and closed block annuity, respectively)

Ending balance of original discount rate (including DPL of $ 42 , $ 0 and $ 614 in March 31, 2024, and $ 42 , $ 0 and $ 626 in December 31, 2023 for payout annuities, closed block life and closed block annuity, respectively)

1,204 5,771 4,326 1,189 5,901 4,400

4 unchanged sentences

Reserves for future policy benefits, after reinsurance recoverable $ 994 $ 1,711 $ 4,088 $ 996 $ 1,794 $ 4,211

The following table presents the weighted average duration of the reserves for future policy benefits (2022 information recast for the adoption of LDTI).

The following table presents the weighted average duration of the reserves for future policy benefits.

The weighted average duration represents average cohort-level duration weighted by the benefit reserves amount:

1 unchanged sentence

Annuities Life Annuity

September 30, 2023

March 31, 2024

Weighted average duration (years) 6.9 7.1 6.9

2 unchanged sentences

The discount rate assumption was updated based on current market data.

Discount rates increased in the third quarter of 2023 compared to the fourth quarter of 2022.

Discount rates increased substantially throughout 2023 primarily due to increases in single-A yields, which resulted in a decrease in the liability for future policy benefits .

Discount rates increased in the first quarter of 2024 compared to the fourth quarter of 2023.

Discount rates increased primarily due to increases in risk-free rates, which resulted in a decrease in the liability for future policy benefits.

Refer to the roll-forward above for further details.

1 unchanged sentence

Reserves for Future Policy Benefits and Claims Payable

The following table presents the amount of undiscounted and discounted expected future gross premiums and expected future benefit payments for future policy benefits for non-participating traditional and limited-payment insurance contracts (in millions, 2022 information recast for the adoption of LDTI).

The discounted premiums are calculated using the current discount rate, while the undiscounted cash flows represent the gross cash flows before any discounting is applied:

September 30, 2023 December 31, 2022

March 31, 2024 December 31, 2023

Undiscounted Discounted Undiscounted Discounted

8 unchanged sentences

Expected future gross premiums $ — $ — $ — $ —

The following table presents the amount of revenue and interest related to non-participating traditional and limited-pay insurance contracts recognized in the Condensed Consolidated Income Statements (in millions, 2022 information recast for the adoption of LDTI):

Gross Premiums Interest Expense

Nine Months Ended September 30, 2023 Year Ended December 31, 2022 Nine Months Ended September 30, 2023 Year Ended December 31, 2022

Three Months Ended March 31, 2024 Year Ended December 31, 2023 Three Months Ended March 31, 2024 Year Ended December 31, 2023

Payout Annuities $ 10 $ 22 $ 11 $ 43

2 unchanged sentences

Total $ 89 $ 363 $ 90 $ 394

The following table presents the weighted average interest rate for the reserves for future policy benefits at the cohort's level for the locked-in discount rate (interest accretion rate), and current discount rate, weighted by the cohort's benefit reserve amount (2022 information recast for the adoption of LDTI):

September 30, 2023 December 31, 2022

March 31, 2024 December 31, 2023

Payout Annuities

9 unchanged sentences

Reserves for Future Policy Benefits and Claims Payable

The following table presents a roll-forward of Closed Block Life additional liabilities for annuitization, death and other insurance benefits (in millions, 2022 information recast for the adoption of LDTI):

Nine Months Ended September 30, 2023 Year Ended December 31, 2022

The following table presents a roll-forward of Closed Block Life additional liabilities for annuitization, death and other insurance benefits (in millions):

Three Months Ended March 31, 2024 Year Ended December 31, 2023

Balance, beginning of period $ 1,153 $ 1,131

9 unchanged sentences

The following table presents the weighted average duration of Closed Block Life additional liabilities for annuitization, death and other insurance benefits.

The weighted average duration represents average cohort-level duration weighted by the benefit reserves amount (2022 information recast for the adoption of LDTI):

September 30, 2023 December 31, 2022

The weighted average duration represents average cohort-level duration weighted by the benefit reserves amount:

March 31, 2024 December 31, 2023

Weighted average duration (years) 9.5 9.7

The following table presents assessments and interest expense of Closed Block Life additional liabilities for annuitization, death and other insurance benefits recognized in the Condensed Consolidated Income Statements (in millions, 2022 information recast for the adoption of LDTI):

Assessments Interest Expense

Nine Months Ended September 30, 2023 Year Ended December 31, 2022 Nine Months Ended September 30, 2023 Year Ended December 31, 2022

Three Months Ended March 31, 2024 Year Ended December 31, 2023 Three Months Ended March 31, 2024 Year Ended December 31, 2023

Additional liability for annuitization, death and other insurance benefits $ ( 47 ) $ ( 148 ) $ 14 $ 56

The following table presents the weighted average current discount rate of Closed Block Life additional liabilities for annuitization, death and other insurance benefits, applied at the cohort level weighted by reserve benefit amount (2022 information recast for the adoption of LDTI):

September 30, 2023 December 31, 2022

March 31, 2024 December 31, 2023

Weighted average current discount rate 4.97 % 4.97 %

2 unchanged sentences

Other Contract Holder Funds

This note contains the new accounting policy for the adoption of LDTI.

Other contract holder funds represent the policyholder account balance on our universal life-type products, investment contracts, and the fair value of the embedded derivatives associated with the indexed crediting features on our fixed index annuities and registered index-linked annuities.

3 unchanged sentences

These additional liabilities for death or other insurance benefits are reported as a component of reserves for future policy benefits and claims payable in the Condensed Consolidated Balance Sheets.

See Note 9 of the Notes to the Condensed Consolidated Financial Statements for more information regarding these additional liabilities.

See Note 9 - Reserves for Future Policy Benefits and Claims Payable of the Notes to the Condensed Consolidated Financial Statements for more information regarding these additional liabilities.

Certain contracts without significant mortality or morbidity risk and certain annuities that lack insurance risk are treated as investment contracts.

11 unchanged sentences

These market risk benefits are a component of the market risk benefits line items in the Condensed Consolidated Balance Sheet.

See Note 12 of the Notes to Condensed Consolidated Financial Statements for more information regarding market risk benefits.

See Note 12 - Market Risk Benefits of the Notes to Condensed Consolidated Financial Statements for more information regarding market risk benefits.

The Company’s institutional products business is comprised of the 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.

2 unchanged sentences

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 both September 30, 2023 and December 31, 2022 totaled $ 5.9 billion, respectively.

The carrying values at March 31, 2024 and December 31, 2023 totaled $ 5.2 billion and $ 5.8 billion, respectively.

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

6 unchanged sentences

Advances are in the form of funding agreements, short-term and long-term borrowings issued to FHLBI.

At September 30, 2023 and December 31, 2022, the Company held $ 108 million and $ 146 million of FHLBI capital stock, respectively, supporting $ 2.2 billion and $ 2.1 billion in funding agreements and short-term and long-term borrowings at September 30, 2023 and December 31, 2022, respectively.

The following table presents the liabilities for other contract holder funds (in millions, 2022 information recast for the adoption of LDTI):

September 30, 2023 December 31, 2022

At March 31, 2024 and December 31, 2023, the Company held $ 127 million and $ 108 million of FHLBI capital stock, respectively, supporting $ 2.0 billion and $ 2.3 billion in funding agreements and short-term and long-term borrowings at March 31, 2024 and December 31, 2023, respectively.

At March 31, 2024 and December 31, 2023, the funding agreements and short-term and long-term borrowings were collateralized by mortgage-related securities and commercial mortgage loans with a carrying value of $ 3.1 billion and $ 3.5 billion, respectively.

The following table presents the liabilities for other contract holder funds (in millions):

March 31, 2024 December 31, 2023

Payout Annuity $ 851 $ 860

8 unchanged sentences

Total other contract holder funds $ 54,897 $ 55,319

The following table presents a roll-forward of other contract holder funds, gross of reinsurance (in millions, 2022 information recast for the adoption of LDTI):

The following table presents a roll-forward of other contract holder funds, gross of reinsurance (in millions):

Fixed Closed Closed

8 unchanged sentences

Policy charges and other ( 1 ) ( 21 ) ( 34 ) ( 5 ) — ( 126 ) — ( 187 )

Balance as of September 30, 2023 $ 852 $ 8,921 $ 10,202 $ 10,715 $ 3,841 $ 11,084 $ 1,267 $ 46,882

Balance as of March 31, 2024 $ 851 $ 7,991 $ 9,350 $ 9,923 $ 6,644 $ 10,926 $ 1,220 $ 46,905

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

3 unchanged sentences

Annuity Annuity Annuity Annuities RILA Life Annuity Total

Balance as of December 31, 2021 $ 831 $ 9,456 $ 13,185 $ 13,161 $ 110 $ 11,570 $ 1,394 $ 49,707

Balance as of January 1, 2023 $ 837 $ 10,259 $ 11,696 $ 11,787 $ 1,875 $ 11,215 $ 1,319 $ 48,988

Deposits 202 995 234 211 2,890 307 4 4,843

5 unchanged sentences

Balance as of December 31, 2023 $ 860 $ 8,396 $ 9,736 $ 10,243 $ 5,219 $ 11,039 $ 1,252 $ 46,745

The following table presents weighted average crediting rate, net amount at risk, and cash surrender value of contract holder account balances (dollars in millions, 2022 information recast for the adoption of LDTI):

The following table presents weighted average crediting rate, net amount at risk, and cash surrender value of contract holder account balances (dollars in millions):

Fixed Closed Closed

1 unchanged sentence

Annuity Annuity Annuity Annuities RILA Life Annuity

September 30, 2023

March 31, 2024

Weighted-average crediting rate (1)

13 unchanged sentences

(2) Net amount at risk represents the standard excess benefit base for guaranteed death benefits on universal life type products.

The net amount at risk associated with market risk benefits are presented within Note 12 of the Notes to Consolidated Financial Statements, as recast in our Current Report on Form 8-K filed May 10, 2023.

The net amount at risk associated with market risk benefits are presented within Note 12 of the Notes to Condensed Consolidated Financial Statements.

(3) Cash surrender value represents the amount of the contract holder’s account balance distributable at the balance sheet date less the applicable surrender charges.

At September 30, 2023 and December 31, 2022, excluding reinsurance business, approximately 93 % and 92 % of the Company’s annuity account values correspond to crediting rates that are at the minimum guaranteed interest rates, respectively.

At September 30, 2023 and December 31, 2022, excluding reinsurance business, approximately 64 % and 65 % of the Company’s closed block life account values correspond to crediting rates that are at the minimum guaranteed interest rates, respectively.

At March 31, 2024 and December 31, 2023, excluding reinsurance business, approximately 94 % and 92 % of the Company’s annuity account values correspond to crediting rates that are at the minimum guaranteed interest rates, respectively.

At March 31, 2024 and December 31, 2023, excluding reinsurance business, approximately 83 % and 64 % of the Company’s closed block life account values correspond to crediting rates that are at the minimum guaranteed interest rates, respectively.

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

Other Contract Holder Funds

The following table presents contract holder account balances invested in fixed account funds by range of guaranteed minimum crediting rates and the related range of the difference between rates being credited to other contract holder funds and the respective guaranteed minimums (in millions, 2022 information recast for the adoption of LDTI):

September 30, 2023

March 31, 2024

At Guaranteed 1 Basis Point-50 51 Basis Points-150 Greater Than 150

20 unchanged sentences

Greater than 2.50 %

19 — 69 10 98

Total $ 23 $ 10 $ 72 $ 51 $ 156

43 unchanged sentences

Greater than 2.50 %

21 — 62 10 93

Total $ 25 $ 9 $ 65 $ 53 $ 152

21 unchanged sentences

Separate Account Assets and Liabilities

This note contains the new accounting policy for the adoption of LDTI.

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).

2 unchanged sentences

These guarantees are classified as market risk benefits.

See Note 12 of the Notes to Condensed Consolidated Financial Statements for more information regarding market risk benefits.

See Note 12 - Market Risk Benefits of the Notes to Condensed Consolidated Financial Statements for more information regarding market risk benefits.

The separate account assets supporting the variable portion of both traditional variable annuities and variable contracts with guarantees are carried at fair value and reported as summary total separate account assets with an equivalent summary total reported for separate account liabilities.

At September 30, 2023 and December 31, 2022, the assets and liabilities associated with variable life and annuity contracts were $ 203 billion and $ 196 billion, respectively.

At March 31, 2024 and December 31, 2023, the assets and liabilities associated with variable life and annuity contracts were $ 231 billion and $ 220 billion, respectively.

Investment risks associated with market value changes are borne by the contract holders, except to the extent of minimum guarantees made by the Company.

2 unchanged sentences

Included in the separate account assets and liabilities described above is a Jackson issued group variable annuity contract designed for use in connection with and issued to the Company’s Defined Contribution Retirement Plan.

These deposits are allocated to the Jackson National Separate Account - II, which had balances of $ 180 million and $ 285 million at September 30, 2023 and December 31, 2022, respectively.

These deposits are allocated to the Jackson National Separate Account - II, which had balances of $ 213 million and $ 198 million at March 31, 2024 and December 31, 2023, respectively.

The Company receives administrative fees for managing the funds.

These fees are recorded as earned and included in fee income in the Condensed Consolidated Income Statements.

The following table presents the roll-forward of the separate account balance for variable annuities (in millions, 2022 information recast for the adoption of LDTI):

Nine Months Ended September 30, 2023 Year Ended December 31, 2022

The following table presents the roll-forward of the separate account balance for variable annuities (in millions):

Three Months Ended March 31, 2024 Year Ended December 31, 2023

Balance as of beginning of period $ 219,381 $ 195,550

8 unchanged sentences

(1) Cash surrender value represents the amount of the contract holder’s account balances distributable at the balance sheet date less applicable surrender charges.

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

Separate Account Assets and Liabilities

The following table presents the reconciliation of the separate account balance in the Condensed Consolidated Balance Sheets (in millions, 2022 information recast for the adoption of LDTI):

September 30, 2023 December 31, 2022

The following table presents the reconciliation of the separate account balance in the Condensed Consolidated Balance Sheets (in millions):

March 31, 2024 December 31, 2023

Variable Annuities $ 230,479 $ 219,381

Other 252 356

Other Product Lines 294 275

Total $ 230,773 $ 219,656

The following table presents aggregate fair value of assets, by major investment asset category, supporting separate accounts (in millions, 2022 information recast for the adoption of LDTI):

September 30, 2023 December 31, 2022

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

Separate Account Assets and Liabilities

The following table presents aggregate fair value of assets, by major investment asset category, supporting separate accounts (in millions):

March 31, 2024 December 31, 2023

Variable Annuities By Fund Type

7 unchanged sentences

Market Risk Benefits

This note contains the new accounting policy for the adoption of LDTI.

Contracts or contract features that provide protection to the contract holder from capital market risk and expose the Company to other-than-nominal capital market risk are classified as MRBs.

14 unchanged sentences

• Change in non-performance risk — changes in Jackson’s non-performance risk

See Note 6 of the Notes to Condensed Consolidated Financial Statements for more information regarding fair value measurements.

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 12.

Market Risk Benefits

See Note 6 - Fair Value Measurements of the Notes to Condensed Consolidated Financial Statements for more information regarding fair value measurements.

Additionally, when an annuitization occurs (for annuitization benefits) or upon extinguishment of the account balance (for withdrawal benefits), the balance related to the MRB is derecognized and the amount deducted (after derecognition of any related amount included in accumulated other comprehensive income) is used in the calculation of the liability for future policy benefits for the resulting payout annuity.

3 unchanged sentences

The Company discontinued offering the GMIB in 2009 and the guaranteed minimum accumulation benefits (“GMAB”) in 2011.

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 12.

Market Risk Benefits

Variable annuity guaranteed benefit features classified as MRBs, which have explicit fees, are measured using the attributed fee method.

15 unchanged sentences

At inception, the value of the MRB is deducted from the value of the contract resulting in no gain or loss.

The following table presents the reconciliation of the market risk benefits balance in the Condensed Consolidated Balance Sheets (in millions, 2022 information recast for the adoption of LDTI):

September 30, 2023 December 31, 2022

The following table presents the reconciliation of the market risk benefits balance in the Condensed Consolidated Balance Sheets (in millions):

March 31, 2024 December 31, 2023

Variable Other Variable Other

5 unchanged sentences

Market Risk Benefits

The following table presents the roll-forward of the net MRB (assets) liabilities for variable annuities (dollars in millions, 2022 information recast for the adoption of LDTI):

Nine Months Ended September 30, 2023 Year Ended December 31, 2022

The following table presents the roll-forward of the net MRB (assets) liabilities for variable annuities (dollars in millions):

Three Months Ended March 31, 2024 Year Ended December 31, 2023

Net MRB balance, beginning of period $ ( 2,000 ) $ 767

22 unchanged sentences

The change was made as a result of management’s determination that the reliability of credit spreads on debt and debt-like instruments issued by the Company as a measure of company-specific credit risk has increased due to sustained levels of market trading volume of these instruments.

The significant assumptions used in the MRB fair value calculations are discussed in Note 6 of the Notes to Condensed Consolidated Financial Statements.

The significant assumptions used in the MRB fair value calculations are discussed in Note 6 - Fair Value Measurements of the Notes to Condensed Consolidated Financial Statements.

Long-Term Debt

4 unchanged sentences

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

September 30, December 31,

March 31, December 31,

Long-Term Debt

3 unchanged sentences

Senior Notes due 2051 490 490

Senior Notes due 2051 489 488

Surplus notes 250 250

1 unchanged sentence

Total long-term debt $ 2,033 $ 2,037

The following table presents the contractual maturities of the Company's long-term debt as of September 30, 2023 (in millions):

The following table presents the contractual maturities of the Company's long-term debt as of March 31, 2024 (in millions):

Calendar Year

19 unchanged sentences

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 $ 180 million and nil were outstanding at September 30, 2023 and December 31, 2022, respectively, and were recorded in other liabilities.

Interest expense on such advances was nil and nil for the three months ended September 30, 2023 and 2022, respectively, and $ 6 million and nil for the nine months ended September 30, 2023 and 2022, respectively.

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

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

A corporation is subject to the CAMT 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 CAMT liability is payable to the extent the CAMT liability exceeds regular corporate income tax.

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

The Company is an applicable corporation starting in 2023.

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

As of September 30, 2023, the Company has recorded an estimate of $ 450 million for the provision of CAMT based on the Company’s interpretation of available guidance with an offsetting increase to the deferred tax asset for the credit carryover resulting in no impact to total tax expense.

Department of the Treasury is expected to issue additional regulatory guidance in 2023 that may materially change the estimated provision of the CAMT.

Advances of nil and $ 250 million were outstanding at March 31, 2024 and December 31, 2023, respectively, and were recorded in other liabilities.

Interest expense, included as a component of net investment income, on such advances was nil and nil for the three months ended March 31, 2024 and 2023, respectively.

See Note 10 - Other Contract Holder Funds of the Notes Condensed Consolidated Financial Statements for the carrying value of total collateralization of our FHLB obligations .

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 20.5 % and 13.8 % for the three and nine months ended September 30, 2023, compared with 25.9 % and 20.5 % for the same period in 2022.

The Company’s effective income tax rate was 11.3 % for the three months ended March 31, 2024, compared with 27.2 % for the same period in 2023.

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 nine months ended September 30, 2023 compared to 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 2022.

The ETR differs for the nine months ended September 30, 2023 from the full year-ended December 31, 2022 ETR of 19.6 % due to the relationship of taxable income to consolidated pre-tax income and the tax benefit from tax adjustments related to prior year returns recorded in the current quarter.

The change in the ETR for the three months ended March 31, 2024 compared to the three months ended March 31, 2023 was due to the relationship of taxable income to consolidated pre-tax income (loss).

The ETR differs for the three months ended March 31, 2024 from the full year-ended December 31, 2023 ETR of 0.5 % due to the relationship of taxable income to consolidated pre-tax income.

For the three months ended March 31, 2024 and 2023, the Company recorded an estimate of $ 111 million and nil , respectively, for the provision of the Federal corporate alternative minimum tax ("CAMT") based on the Company’s interpretation of available guidance.

This was offset with an increase to the deferred tax asset for the credit carryover, resulting in no impact to total tax expense.

The estimate is based on interpretations and assumptions we have made regarding the CAMT provisions of the Inflation Reduction Act of 2022.

Department of the Treasury is expected to issue additional regulatory guidance in 2024 that may materially change the estimated provision of the CAMT.

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.

7 unchanged sentences

The Company has adopted an accounting policy to analyze the ability to recover the CAMT credit carryover deferred tax asset separately from the deferred tax assets generated under the regular tax system.

For the nine months ended September 30, 2023, changes in market conditions and 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,

For the three months ended March 31, 2024, changes in market conditions and 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 March 31, 2024, 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 ended March 31, 2024 the Company recorded an increase of $ 46 million to the valuation allowance associated with the unrealized tax losses in the Company's available for sale securities portfolio and a change of nil related to both realized and unrealized losses on capital assets of the Non-life Companies.

The $ 46 million increase for the three months ended March 31, 2024 to the valuation allowance consists of $ 58 million tax expense recorded to other comprehensive income

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

and as such, when assessing its recoverability, we consider our ability and intent to hold the underlying securities to recovery.

As of September 30, 2023, 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 and nine months ended September 30, 2023, the Company recorded an increase of $ 225 million and an increase of $ 183 million to the valuation allowance associated with the unrealized tax losses in the Company’s available for sale securities portfolio and both realized and unrealized losses on capital assets of the Non-life Companies.

The $ 225 million increase for the three months ended September 30, 2023 to the valuation allowance consists of $ 217 million tax expense recorded to other comprehensive income and $ 8 million tax expense recorded in the income tax expense.

The $ 183 million increase for the nine months ended September 30, 2023 to the valuation allowance consists of $ 165 million tax expense recorded to other comprehensive income and $ 18 million tax expense recorded in the income tax expense.

At September 30, 2023 and December 31, 2022, the Company has recorded a total valuation allowance for $ 1,086 million and $ 906 million, respectively, associated with the unrealized tax losses in the Company's available for sale securities portfolio.

At September 30, 2023 and December 31, 2022, the Company has recorded a total valuation allowance for $ 7 million and $ 4 million, respectively, against the deferred tax assets associated with both realized and unrealized losses on capital assets in the Non-life Companies where it is not more-likely-than-not that the full tax benefit of the losses will be realized.

and $ 12 million tax benefit recorded in the income tax expense.

At March 31, 2024 and December 31, 2023, the Company has recorded a total valuation allowance for $ 735 million and $ 688 million, respectively, associated with the unrealized tax losses in the Company's available for sale securities portfolio.

At March 31, 2024 and December 31, 2023, the Company has recorded a total valuation allowance for $ 1 million and $ 1 million, respectively, against the deferred tax assets associated with both realized and unrealized losses on capital assets in the Non-life Companies where it is not more likely than not that the full tax benefit of the losses will be realized.

Commitments and Contingencies

3 unchanged sentences

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

At September 30, 2023, the Company had unfunded commitments related to its investments in limited partnerships and limited liability companies totaling $ 932 million.

At September 30, 2023, unfunded commitments related to fixed-rate mortgage loans and other debt securities totaled $ 915 million.

Other Related Party Transactions

The Company's investment management operation, PPM, provides investment services to entities affiliated with the Company's former parent.

As of June 30, 2023, the former parent had no remaining equity interest in the Company and therefore its affiliated entities are no longer designated as related parties.

The Company recognized nil million and $ 7 million of revenue during the three months ended September 30, 2023, and 2022, and $ 18 million and $ 25 million of revenue during the nine months ended September 30, 2023 and 2022, associated with these investment services.

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

At March 31, 2024, the Company had unfunded commitments related to its investments in limited partnerships and limited liability companies totaling $ 751 million.

At March 31, 2024, unfunded commitments related to fixed-rate mortgage loans and other debt securities totaled $ 804 million.

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 September 30, Nine Months Ended September 30,

2023 2022 2023 2022

Three Months Ended March 31,

Asset-based commission expenses $ 279 $ 250

7 unchanged sentences

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, 2022 information recast for the adoption of LDTI):

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

2023 2022 2023 2022

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

Three Months Ended March 31,

Balance, beginning of period (1)

2 unchanged sentences

Change in current discount rate - reserve for future policy benefits (2)

254 460 204 1,816

Change in non-performance risk on market risk benefits ( 511 ) 284

6 unchanged sentences

$ ( 3,423 ) $ ( 2,308 )

(1) Includes $( 2,261 ) million and $( 2,106 ) million related to the investments held within the funds withheld account related to the Athene Reinsurance Transaction as of September 30, 2023 and December 31, 2022, respectively.

(1) Includes $( 1,661 ) million and $( 1,612 ) million related to the investments held within the funds withheld account related to the Athene Reinsurance Transaction as of March 31, 2024 and December 31, 2023, respectively.

(2) Represents the impact of changes in the discount rate used in the remeasurement of our direct reserves for future policy benefits and claims payable, net of the remeasurement of ceded reserves for future policy benefits and claims payable.

The following table represents amounts reclassified out of AOCI (in millions, 2022 information recast for the adoption of LDTI):

AOCI Components Amounts

Reclassified from AOCI Affected Line Item in the Condensed

Consolidated Income Statement

Three Months Ended September 30,

Net unrealized investment gain (loss):

Net realized gain (loss) on investments $ 112 $ ( 47 ) Net gains (losses) on derivatives and investments

Other impaired securities ( 14 ) ( 25 ) Net gains (losses) on derivatives and investments

Net unrealized gain (loss), before income taxes 98 ( 72 )

Income tax expense (benefit) 20 ( 16 )

Reclassifications, net of income taxes $ 78 $ ( 56 )

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

AOCI Components Amounts

1 unchanged sentence

Consolidated Income Statement

Nine Months Ended September 30,

Three Months Ended March 31,

Net unrealized investment gain (loss):

1 unchanged sentence

Other impaired securities ( 2 ) ( 23 ) Net gains (losses) on derivatives and investments

Net unrealized gain (loss), before income taxes 144 ( 80 )

Net unrealized gain (loss) ( 3 ) 37

Income tax expense (benefit) ( 1 ) 8

14 unchanged sentences

Holders of Depositary Shares have no right to require the redemption or repurchase of the Series A Preferred Stock or the Depositary Shares.

The net proceeds from the sale are being used for general corporate purposes, including future repayments of debt.

The following table presents declaration date, record date, payment date and dividends paid per preferred share and per depositary share of JFI’s Series A preferred stock:

The net proceeds from the sale were used for general corporate purposes, including the repayment of senior notes that matured in November 2023.

The following table presents declaration date, record date, payment date and dividends paid per preferred share of, and per depositary share representing, JFI’s Series A preferred stock:

Dividends Paid

1 unchanged sentence

Quarter Ended

06/30/2023 May 8, 2023 June 1, 2023 June 30, 2023 $ 594.44 $ 0.59444

09/30/2023 August 7, 2023 August 31, 2023 October 2, 2023 $ 500.00 $ 0.50000

03/31/2024 February 20, 2024 March 12, 2024 April 1, 2024 $ 500 $ 0.50

Quarter Ended

03/31/2023 None

At the time of the Demerger, the Company had two classes of common stock:

5 unchanged sentences

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, 2023 and December 31, 2022, the Company was authorized to issue up to 1 billion shares of common stock (formerly known as the Class A Common Stock at December 31, 2021).

At March 31, 2024 and December 31, 2023,

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

the Company was authorized to issue up to 1 billion shares of common stock (formerly known as the Class A Common Stock at December 31, 2021).

Share Repurchase Program

On February 27, 2023, our Board of Directors authorized an increase of $ 450 million in our existing authorization to repurchase shares of our outstanding common stock as part of the Company's share repurchase program.

As of November 3, 2023, the Company had remaining authorization to purchase $ 342 million of its common shares.

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

The timing, form and amount of the share repurchases under the program are at the discretion of management and will depend on a variety of factors, including funds available at the parent company, other potential uses for such funds, market conditions, the Company's capital position, legal requirements and other factors.

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

The timing, form and amount of the share repurchases under the program are at the discretion of management and will depend on a variety of factors, including funds available at the Company, other potential uses for such funds, market conditions, the Company's capital position, legal requirements and other factors.

The repurchase program may be modified, extended or terminated by the Board at any time.

It does not have an expiration date.

There can be no assurance that we will continue share repurchases or approve any increase to, or approve any new, stock repurchase program, or as to the amount of any repurchases made pursuant to such programs.

There can be no assurance that we will continue share repurchases or approve any increase to, or approve any new, stock repurchase program, or the amount of any repurchases made pursuant to such programs.

The Inflation Reduction Act of 2022 creates a 1% excise tax on net stock buybacks of publicly-traded U.S.

3 unchanged sentences

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.

Through September 30, 2023, we have not incurred any excise tax as stock issuances (including preferred stock) were greater than stock repurchases.

Through March 31, 2024, we have not incurred any excise tax as stock issuances (including preferred stock) were greater than stock repurchases.

The following table represents share repurchase activities as part of this share repurchase program:

7 unchanged sentences

2024 (January 1- March 31) 2,157,372 116 53.76

2023 (April 1- June 30) 1,394,797 47 33.87

2023 (July 1- September 30) 1,873,727 71 38.13

2023 (October 1- November 3) 670,000 26 38.41

2024 (April 1- May 2) 718,812 48 66.80

Total 2024 2,876,184 $ 164 $ 57.02

4 unchanged sentences

Shares repurchased under repurchase program — ( 2,157,372 ) ( 2,157,372 )

Shares at September 30, 2023 94,481,006 ( 14,429,106 ) 80,051,900

Shares at March 31, 2024 94,481,006 ( 17,859,632 ) 76,621,374

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

Dividends to Shareholders

Any declaration of cash dividends on common stock will be at the discretion of JFI’s Board of Directors and will depend on our financial condition, earnings, liquidity and capital requirements, regulatory constraints, level of indebtedness, preferred stock, and contractual restrictions with respect to paying cash dividends, restrictions imposed by Delaware law, general business conditions and any other factors that JFI’s Board of Directors deems relevant in making any such determination.

Any declaration of cash dividends on common stock will be at the discretion of JFI’s Board of Directors and will depend on our financial condition, earnings, liquidity and capital requirements, regulatory constraints, level of indebtedness, preferred stock, contractual restrictions with respect to paying cash dividends, restrictions imposed by Delaware law, general business conditions and any other factors that JFI’s Board of Directors deems relevant in making any such determination.

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

4 unchanged sentences

03/31/2024 February 20, 2024 March 12, 2024 March 21, 2024 $ 0.70

06/30/2023 May 8, 2023 June 1, 2023 June 15, 2023 $ 0.62

09/30/2023 August 7, 2023 August 31, 2023 September 14, 2023 $ 0.62

Quarter Ended

03/31/2023 February 27, 2023 March 14, 2023 March 23, 2023 $ 0.62

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

2 unchanged sentences

Beginning in 2021, the Company granted its first share-based awards subject to vesting provisions of the 2021 Omnibus Incentive Plan, which have a dilutive effect.

See Note 18 of the Notes to Consolidated Financial Statements in the Company’s 2022 Annual Report, as recast in our Current Report on Form 8-K filed May 10, 2023, for further description of share-based awards.

The following table sets forth the calculation of earnings per common share (2022 information recast for the adoption of LDTI):

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

2023 2022 2023 2022

See Note 18 - Share-Based Compensation of the Notes to Consolidated Financial Statements in the Company’s 2023 Annual Report for further description of share-based awards.

The following table sets forth the calculation of earnings per common share:

Three Months Ended March 31,

(in millions, except share and per share data)

7 unchanged sentences

Weighted average shares of common stock outstanding - diluted (1)

78,867,103 82,646,113

Earnings per share—common stock

1 unchanged sentence

Diluted $ 9.94 $ ( 18.11 )

(1) If we reported a net loss attributable to Jackson Financial Inc., all common stock equivalents are anti-dilutive and are therefore excluded from the calculation of diluted shares and diluted per share amounts.

The shares excluded from the diluted EPS calculation were 3,436,857 shares for the three months ended March 31, 2023.

Subsequent Events

1 unchanged sentence

Dividends Declared to Shareholders

On November 6, 2023, our Board of Directors approved a fourth quarter cash dividend on JFI's common stock, $ 0.62 per share, payable on December 14, 2023, to shareholders of record on November 30, 2023.

The Company also declared a cash dividend of $ 0.50 per depositary share (the "Depositary Shares"), each representing a 1/1,000th interest in a share of Fixed-Rate Reset Noncumulative Perpetual Preferred Stock, Series A.

The dividend will be payable on January 2, 2024, to Depositary Shares shareholders of record at the close of business on November 30, 2023.

On May 2, 2024, our Board of Directors approved a cash dividend on JFI's common stock, $ 0.70 per share for the second quarter 2024, payable on June 20, 2024, to shareholders of record on June 6, 2024.

The Company also announced the declaration of a cash dividend of $ 0.50 per depositary share, each representing a 1/1,000th interest in a share of Fixed-Rate Reset Noncumulative Perpetual Preferred Stock, Series A.

The dividend will be payable on July 1, 2024, to shareholders of record at the close of business on June 6, 2024.

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