15 unchanged sentences
We routinely use our investor relations website, at investors.jackson.com, as a primary channel for disclosing key information to our investors, some of which may contain material and previously non-public information.
−Removed: We may also use social media channels to communicate with our investors and the public about our Company and other matters, and those communications could be deemed to be material information.
−Removed: The information contained on, or that may be accessed through, our website or social media channels is not incorporated by reference into and is not part of this report.
+Added: We and certain of our senior executives may also use social media channels to communicate with our investors and the public about our Company and other matters, and those communications could be deemed to be material information.
+Added: The information contained on, or that may be accessed through, our website, or our or our executives' social media channels, is not incorporated by reference into and is not part of this report.
Item 2 | Management’s Discussion and Analysis | Available Information & Principal Definitions
Available Information
−Removed: We make available free of charge, through our investor relations page of our website, investors.jackson.com, our annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, our proxy statements, and any amendments to those reports or statements as soon as reasonably practicable after these materials are electronically filed with, or furnished to, the SEC.
+Added: We make available free of charge, through our investor relations page of our website, investors.jackson.com, our annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, proxy statements, and any amendments to those reports or statements as soon as reasonably practicable after these materials are electronically filed with, or furnished to, the SEC.
We use our investor relations page of our website as a routine channel for distribution of important information, including news releases, analyst presentations, financial information, and corporate governance information.
7 unchanged sentences
Brooke Life Brooke Life Insurance Company, our subsidiary and the direct parent company of Jackson National Life Insurance Company and Brooke Re
−Removed: Brooke Re Brooke Life Reinsurance Company, our subsidiary, and a Michigan based captive reinsurer
+Added: Brooke Re Brooke Life Reinsurance Company, a direct subsidiary of Brooke Life, and a Michigan-based captive reinsurer
Jackson Finance Jackson Finance, LLC, our subsidiary
42 unchanged sentences
Overview of Management's Discussion and Analysis of Financial Condition and Results of Operations
−Removed: The following discussion and analysis of our financial condition and results of operations should be read in its entirety and in conjunction with the Condensed Consolidated Financial Statements and related notes contained in Part I, Item 1 of this report, as well as “Management’s Discussion and Analysis of Financial Condition and Results of Operations” section in our 2023 Annual Report.
+Added: The following discussion and analysis of our financial condition and results of operations should be read in its entirety and in conjunction with the Condensed Consolidated Financial Statements and related notes contained in Part I, Item 1 of this report, as well as the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” section in our 2023 Annual Report.
Jackson Financial Inc.
12 unchanged sentences
We earn revenues predominantly from fee income, spread income resulting from what we earn on investments versus the interest we credit to contract holders, and margins on other insurance products.
−Removed: Our profitability is dependent on our ability to properly price and manage risk on insurance and annuity products, to manage our portfolio of investments effectively, and to control costs through expense discipline.
+Added: Our profitability is dependent on our ability to properly price and manage risk on insurance and annuity products, manage our portfolio of investments effectively, and control costs through expense discipline.
Due to funds withheld reinsurance arrangements, including the Athene Reinsurance Transaction, we hold significant assets whose investment performance accrues to the benefit of the related reinsurer.
3 unchanged sentences
Our core dynamic hedging program seeks to offset changes in the economic liability associated with variable annuity guaranteed benefits due to market movements, while our macro hedging program seeks to protect statutory capital under a range of stress scenarios.
−Removed: We do not use U.S.
−Removed: GAAP as the basis for hedging liabilities.
−Removed: We do not directly seek to offset the movement in our market risk benefit liabilities from changes in market conditions.
As a result, the changes in the fair value of the derivatives used as part of our overall hedging program are not expected to match the movements in the market risk benefit liabilities resulting in volatility from changes in fair value recorded to net income.
2 unchanged sentences
GAAP measures.
−Removed: Item 2 | Management’s Discussion and Analysis | Executive Summary
We manage our business through three segments:
Retail Annuities, Institutional Products, and Closed Life and Annuity Blocks.
−Removed: We report in Corporate and Other activities and items that are not included in these segments, including the results of PPM Holdings, Inc., the parent holding company of PPM America Inc.
−Removed: ("PPM"), which manages the majority of our general account investment portfolio.
+Added: We report in Corporate and Other activities and items that are not included in the three segments, including the results of PPM Holdings, Inc., the parent holding company of PPM America Inc.
+Added: ("PPM"), that manages the majority of our general account investment portfolio.
See Note 3 - Segment Information of the Notes to Condensed Consolidated Financial Statements for further information on our segments.
+Added: Item 2 | Management’s Discussion and Analysis | Executive Summary
An understanding of several key operating measures, including sales, account value, net flows, benefit base and assets under management ("AUM"), is helpful in evaluating our results.
2 unchanged sentences
The table below presents selected financial and operating measures:
−Removed: Three Months Ended June 30, Six Months Ended June 30,
+Added: Three Months Ended September 30, Nine Months Ended September 30,
2024 2023 2024 2023
14 unchanged sentences
• Capital Returned to Common Shareholders:
−Removed: Since January 1, 2024 through June 30, 2024, we have returned $316 million to our common shareholders consisting of $110 million in dividends and $206 million in common share repurchases.
+Added: Since January 1, 2024 through September 30, 2024, we have returned $483 million to our common shareholders consisting of $164 million in dividends and $319 million in common share repurchases.
Our capital return target for common shareholders for 2024 is $550-$650 million.
−Removed: Share repurchases, net of issuances for our share-based compensation, have reduced our outstanding shares of common stock from 78,660,221 at December 31, 2023 to 75,700,457 at June 30, 2024.
+Added: Share repurchases, net of issuances for our share-based compensation, have reduced our outstanding shares of common stock from 78,660,221 at December 31, 2023 to 74,351,061 at September 30, 2024.
See Note 19 of the Notes to Condensed Consolidated Financial Statements for further information on our share repurchases.
8 unchanged sentences
Holding company liquidity at JFI was not impacted by the transaction.
−Removed: Item 2 | Management’s Discussion and Analysis | Executive Summary
Brooke Re is a Michigan captive insurer regulated by the Michigan Department of Insurance and Financial Services and created in the first quarter of 2024 for the express purpose of serving as the counterparty to the reinsurance transaction with Jackson described above.
Brooke Re was capitalized with assets contributed from Brooke Life of approximately $1.9 billion originating from Jackson as a return of capital to Brooke Life.
−Removed: Brooke Re utilizes a modified GAAP approach primarily related to market risk benefits, with the intent to increase alignment between assets and liabilities in response to changes in economic factors.
+Added: Brooke Re utilizes a modified U.S.
+Added: GAAP approach primarily related to market risk benefits, with the intent to increase alignment between assets and liabilities in response to changes in economic factors.
+Added: Item 2 | Management’s Discussion and Analysis | Executive Summary
The transaction mitigates the impact of the cash surrender value floor on Jackson’s total adjusted capital, statutory required capital, and risk-based capital ("RBC") ratio and enables more efficient economic hedging of the underlying risks of Jackson’s business.
5 unchanged sentences
We believe sales statistics are useful to gaining an understanding of, among other things, the attractiveness of our products, how we can best meet our customers’ needs, evolving industry product trends and the performance of our business from period to period.
−Removed: Three Months Ended June 30, Six Months Ended June 30,
+Added: Three Months Ended September 30, Nine Months Ended September 30,
2024 2023 2024 2023
9 unchanged sentences
(1) Includes payout annuities.
−Removed: Higher retail sales for the three and six months ended June 30, 2024 were primarily due to increased RILA and variable annuity sales.
−Removed: In addition, sales of our institutional products were higher for the three months ended June 30, 2024 but lower for the six months ended June 30, 2024, reflecting our opportunistic approach to this business, depending on both the risk-adjusted return on investment opportunities available and the prevailing cost of funding required by purchasers.
+Added: Higher retail sales for the three and nine months ended September 30, 2024 were primarily due to increased RILA and fixed annuity sales.
+Added: This was a strong quarter in the fixed annuity market, both for the Company and the industry, as consumers looked to lock in crediting rates during a quarter with declining interest rates.
+Added: While we expect our distribution efforts to continue to deliver higher levels of fixed annuity sales going forward, we expect near-term volumes will be below third quarter levels.
+Added: In addition, sales of our institutional products were higher for the three and nine months ended September 30, 2024, reflecting our opportunistic approach to this business, which depends on both the risk-adjusted return on investment opportunities available and the prevailing cost of funding required by purchasers.
+Added: Item 2 | Management’s Discussion and Analysis | Key Operating Measures
Account Value
−Removed: Account value ("AV") generally equals the account value of our variable annuities, RILA, fixed index annuities, fixed annuities, interest sensitive life, and institutional products.
+Added: Account value ("AV") as shown below generally equals the account value of our variable annuities, RILA, fixed index annuities, fixed annuities, interest sensitive life, and institutional products.
It reflects the total amount of customer invested assets that have accumulated within a respective product and equals cumulative customer contributions, which includes gross deposits or premiums, plus accrued credited interest plus or minus the impact of market movements, as applicable, less withdrawals and various fees.
We believe account value is a useful metric in providing an understanding of, among other things, the sources of potential fee and spread income generation, potential benefit obligations and risk management priorities.
−Removed: Item 2 | Management’s Discussion and Analysis | Key Operating Measures
−Removed: June 30, 2024 December 31, 2023
+Added: September 30, 2024 December 31, 2023
(in millions)
16 unchanged sentences
(1) Net of reinsurance.
+Added: Item 2 | Management’s Discussion and Analysis | Key Operating Measures
Net flows represent the net change in customer account balances during a period, reflecting gross premiums received and surrenders, withdrawals and benefits payments.
1 unchanged sentence
We believe net flows is a useful metric in providing an understanding of, among other things, sales, ongoing premiums and deposits, the changes in account value from period to period, sources of potential fee and spread income and policyholder behavior.
−Removed: Three Months Ended June 30, Six Months Ended June 30,
+Added: Three Months Ended September 30, Nine Months Ended September 30,
2024 2023 2024 2023
3 unchanged sentences
Fixed Index Annuity (1)
+Added: 44 36 103 171
Fixed Annuity (1)
10 unchanged sentences
(1) Net of reinsurance.
+Added: Net flows, net of reinsurance, decreased for the three and nine months ended September 30, 2024, compared to the three and nine months ended September 30, 2023, driven by increased variable annuity surrenders and withdrawals, partially offset by increased RILA and fixed annuity sales.
Item 2 | Management’s Discussion and Analysis | Key Operating Measures
−Removed: Net flows, net of reinsurance, decreased for the three and six months ended June 30, 2024, compared to the three and six months ended June 30, 2023, driven by increased variable annuity surrenders and withdrawals, partially offset by increased RILA sales.
Benefit base refers to a notional amount that represents the value of a customer’s guaranteed benefit and, therefore, may be a different value from the invested assets in a customer’s account value.
2 unchanged sentences
We believe benefit base is a useful metric for our variable annuity policies in providing an understanding of, among other things, fee income generation, potential optional guarantee benefit obligations and risk management priorities.
−Removed: The following table shows variable annuity account value and benefit base as of June 30, 2024 and December 31, 2023:
−Removed: June 30, 2024 December 31, 2023
+Added: The following table shows variable annuity account value and benefit base as of September 30, 2024 and December 31, 2023:
+Added: September 30, 2024 December 31, 2023
Account Value Benefit Base Account Value Benefit Base
13 unchanged sentences
Total $ 242,245 $ 160,766 $ 227,777 $ 165,350
−Removed: (1) Substantially all our GMIB benefits are reinsured.
+Added: (1) Substantially all of our GMIB benefits are reinsured.
Assets Under Management
3 unchanged sentences
We believe AUM is a useful metric for understanding, among other things, the sources of our earnings, net investment income and performance of our invested assets, customer directed investments and risk management priorities.
−Removed: June 30, December 31,
+Added: September 30, December 31,
(in millions)
29 unchanged sentences
The interest rate environment has affected, and will continue to affect, our business and financial performance for the following reasons:
−Removed: • Periods of sharp rises in interest rates, as we have seen as a result of the Federal Reserve’s past actions, impact investment-related activity including investment income returns, net investment spread results, new money rates, mortgage loan prepayments, and bond redemptions.
−Removed: Due to increases in interest rates, the yield on new investments has generally exceeded the yield on asset maturities and redemptions (runoff yield).
+Added: • Periods of rising interest rates impact investment-related activity including investment income returns, net investment spread results, new money rates, mortgage loan prepayments, and bond redemptions.
Rising interest rates also impact the hedging results of our variable annuity business as the market value of interest rate hedges decline, thereby driving hedging losses.
4 unchanged sentences
• With the execution of the Brooke Re transaction in the first quarter of 2024, we are able to largely moderate the impact of the cash surrender value floor going forward.
−Removed: In the past, our statutory total adjusted capital ("TAC") has been negatively impacted by rising rates due to minimum required reserving levels (i.e., cash surrender value floor) when reserve releases are limited and unable to offset interest rate hedging losses.
+Added: In the past, our statutory total adjusted capital ("TAC") has been negatively impacted by rising rates due to minimum required reserving levels ( i.e.
+Added: , cash surrender value floor) when reserve releases are limited and unable to offset interest rate hedging losses.
The risk-based capital, or RBC, ratio increased or decreased depending on the interaction between movements in TAC and movements in statutory required capital (the company action level, or "CAL”).
1 unchanged sentence
This in turn may lead to reduced sales volumes.
−Removed: • Low interest rate environments could also subject us to increased hedging costs or an increase in the amount of statutory reserves that our insurance subsidiaries are required to hold for optional guaranteed benefits, decreasing statutory surplus, which would adversely affect our insurance subsidiaries' ability to pay dividends.
+Added: • Low interest rate environments could also subject us to increased hedging costs or an increase in the amount of regulatory reserves that our insurance subsidiaries are required to hold for optional guaranteed benefits, decreasing regulatory surplus, which would adversely affect our insurance subsidiaries' ability to pay dividends.
In addition, low interest rates could also increase the perceived value of optional guaranteed benefit features to our customers, which in turn could lead to a higher utilization of withdrawal or annuitization features of annuity policies and higher persistency of those products over time.
14 unchanged sentences
In addition, if credit conditions deteriorate due to a recession or other negative credit events in capital markets, we could experience an increase in defaults and other-than-temporary-impairments (“OTTI”).
−Removed: OTTI in our underlying investments would result in a reduction in TAC held by our insurance company subsidiaries.
−Removed: Also, shifts in the credit quality or credit rating downgrades of our investments as a result of stressed credit conditions may also impact the level of regulatory required statutory capital for our insurance company subsidiaries.
+Added: OTTI in our underlying investments would result in a reduction in our insurance company subsidiaries' regulatory capital.
+Added: Also, shifts in the credit quality or credit rating downgrades of our investments as a result of stressed credit conditions may also impact the level of regulatory required capital for our insurance company subsidiaries.
As such, significant credit rating downgrades along with elevated defaults and OTTI losses would negatively impact our RBC ratio, which could impact available dividends from our insurance subsidiaries.
20 unchanged sentences
Our insurance company subsidiaries are regulated primarily at the state level, with some policies and products also subject to federal regulation.
−Removed: New federal and state regulations could impact our business model, including statutory reserve and capital requirements.
+Added: New federal and state regulations could impact our business model, including regulatory reserve and capital requirements.
Our ability to respond to changes in regulation and other legislative activity are critical to our long-term financial performance.
11 unchanged sentences
and, on July 25, 2024, a federal district court in Texas issued an order that the effective date of the final rule is stayed until further order of the Court.
+Added: On September 20, 2024, the DOL timely filed an appeal related to the ruling on the stay.
+Added: Unless the DOL moves to expedite the appeal, it is expected that the Court will issue a decision in six to eight months.
We continue to analyze the impact of the adopted Fiduciary Advice Rule and, while we cannot predict the final rule’s impact, it could have an adverse effect on sales of annuities through our distribution partners and result in increased compliance costs to Jackson.
37 unchanged sentences
(i) fees attributed to guaranteed benefits;
−Removed: (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;
+Added: (ii) net gains (losses) on hedging instruments which includes:
+Added: (a) changes in the fair value of freestanding derivatives, and related commissions and expenses, 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;
+Added: and (b) investment income and change in fair value of certain non-derivative assets used to manage the risk associated with market risk benefits and other guaranteed benefit features;
(iii) the movements in reserves, market risk benefits, guaranteed benefit features accounted for as embedded derivative instruments, and related claims and benefit payments;
16 unchanged sentences
GAAP measure.
−Removed: Three Months Ended June 30, Six Months Ended June 30,
+Added: Three Months Ended September 30, Nine Months Ended September 30,
2024 2023 2024 2023
9 unchanged sentences
Fees attributable to guarantee benefit reserves (779) (784) (2,347) (2,345)
−Removed: Net movement in freestanding derivatives 1,083 1,911 3,659 4,423
+Added: Net (gains) losses on hedging instruments (591) 271 3,068 4,694
Market risk benefits (gains) losses, net 1,172 (2,376) (2,062) (5,120)
27 unchanged sentences
GAAP measure:
−Removed: Three Months Ended June 30, Six Months Ended June 30,
+Added: Three Months Ended September 30, Nine Months Ended September 30,
2024 2023 2024 2023
12 unchanged sentences
Adjusted Operating ROE Attributable to Common Shareholders on average equity 12.3 % 11.8 % 13.0 % 11.6 %
−Removed: (1) Excludes $(1,712) million and $(1,930) million related to the investments held within the funds withheld account related to the Athene Reinsurance Transaction as of June 30, 2024 and 2023, respectively, which are not attributable to Jackson Financial Inc.
+Added: (1) Excludes $(1,336) million and $(2,261) million related to the investments held within the funds withheld account related to the Athene Reinsurance Transaction as of September 30, 2024 and 2023, respectively, which are not attributable to Jackson Financial Inc.
and are therefore not included as an adjustment to total shareholders’ equity in the reconciliation of Adjusted Book Value Attributable to Common Shareholders to total shareholders’ equity.
3 unchanged sentences
The information contained in the table below should be read in conjunction with our Condensed Consolidated Financial Statements and the related notes elsewhere in this report:
−Removed: Three Months Ended June 30, Six Months Ended June 30,
+Added: Three Months Ended September 30, Nine Months Ended September 30,
2024 2023 2024 2023
31 unchanged sentences
Item 2 | Management’s Discussion and Analysis | Consolidated Results of Operations
−Removed: Three Months Ended June 30, 2024 compared to Three Months Ended June 30, 2023
+Added: Three Months Ended September 30, 2024 compared to Three Months Ended September 30, 2023
Pretax Income (Loss)
−Removed: Our pretax income (loss) decreased by $1,147 million to $318 million for the three months ended June 30, 2024, from $1,465 million for the three months ended June 30, 2023, primarily due to:
−Removed: • $2,054 million unfavorable movements in market risk benefits (gains) losses, primarily due to less favorable fund performance and interest rate movements during the three months ended June 30, 2024, compared to the prior year quarter;
−Removed: • $58 million increase in operating costs and other expenses, net of deferrals, primarily due to higher asset-based non-deferrable commissions, due to higher account values during the three months ended June 30, 2024, and an increase in incentive compensation expenses, partially offset by decreased deferred compensation expenses during the three months ended June 30, 2024.
−Removed: These movements were partially offset by:
−Removed: • $690 million increase in total net gains (losses) on derivatives and investments as shown in the table below and driven by:
−Removed: Three Months Ended June 30,
+Added: Our pretax income (loss) decreased by $4,081 million to $(579) million for the three months ended September 30, 2024, from $3,502 million for the three months ended September 30, 2023, primarily due to:
+Added: • $3,548 million unfavorable movements in market risk benefits (gains) losses, primarily due to unfavorable interest rate movements, partially offset by favorable fund performance during the three months ended September 30, 2024, compared to the prior year quarter;
+Added: • $506 million decrease in total net gains (losses) on derivatives and investments as shown in the table below and driven by:
+Added: Three Months Ended September 30,
2024 2023 Variance
6 unchanged sentences
Total net gains (losses) on derivatives and investments $ (682) $ (176) $ (506)
−Removed: ◦ Freestanding derivative movements were primarily driven by lower losses recognized on our equity derivatives resulting from lower market increases during the three months ended June 30, 2024, compared to the prior year;
−Removed: ◦ Higher losses recognized on funds withheld reinsurance were driven by a slight increase in interest rates during the three months ended June 30, 2024, compared to larger increases in interest rates during the three months ended June 30, 2023;
−Removed: • $106 million increase in net investment income as a result of higher income on limited partnership investments, which are recorded on a one quarter lag, higher income on bonds driven primarily by higher yields in 2024, and higher income on funds withheld assets compared to prior year, partially offset by higher investment expenses;
−Removed: • $95 million increase in fee income primarily due to higher average separate account values compared to the prior year;
−Removed: • $60 million decrease in death, other policy benefits, and change in policy reserves, net of (gain) loss from updating future policy benefits cash flow assumptions, primarily due to improved mortality and lower other policyholder benefits.
+Added: ◦ Embedded derivative movements were unfavorable primarily due to market increase impacts on our growing RILA block during the three months ended September 30, 2024, compared to the prior year quarter;
+Added: ◦ Losses recognized on funds withheld reinsurance were driven by a decrease in interest rates impacting the value of the embedded derivative during the three months ended September 30, 2024, compared to increases in interest rates during the three months ended September 30, 2023;
+Added: These losses were partially offset by:
+Added: ◦ Volumes of freestanding derivatives can vary significantly period over period and movements in those derivatives are subject to interest rate or market movements.
+Added: The movements in interest rate hedges during the three months ended September 30, 2024 were primarily driven by a decrease in interest rates whereas the movements in interest rate hedges during the three months ended September 30, 2023 were primarily driven by an increase in interest rates.
+Added: The movements in equity hedges during the three months ended September 30, 2024 were primarily driven by an increase in equity markets whereas the movement in equity hedges during the three months ended September 30, 2023 were primarily driven by a decrease in equity markets.
+Added: • $116 million increase in operating costs and other expenses, net of deferrals, primarily due to an increase in incentive and deferred compensation expenses during the three months ended September 30, 2024 and higher asset-based non-deferrable commissions, due to higher account values during the three months ended September 30, 2024;
+Added: • $35 million decrease in net investment income as a result of lower income on bonds and lower income on funds withheld assets compared to prior year quarter;
+Added: These movements were partially offset by:
+Added: • $82 million increase in fee income primarily due to higher average separate account values compared to the prior year quarter;
+Added: • $22 million decrease in death, other policy benefits, and change in policy reserves, net of (gain) loss from updating future policy benefits cash flow assumptions, primarily due to lower other policyholder benefits.
Item 2 | Management’s Discussion and Analysis | Consolidated Results of Operations
−Removed: Income tax expense decreased $209 million to an expense of $36 million for the three months ended June 30, 2024, from an expense of $245 million for the three months ended June 30, 2023.
−Removed: The provision for income tax in the current period led to an effective income tax rate ("ETR") of 11% for the three months ended June 30, 2024, compared to the June 30, 2023 ETR of 17%.
−Removed: The change in the ETR during the three months ended June 30, 2024, compared to the three months ended June 30, 2023, was due to the relationship of the taxable income to the consolidated pre-tax income.
+Added: Income tax expense decreased $825 million to a benefit of $113 million for the three months ended September 30, 2024, from an expense of $712 million for the three months ended September 30, 2023.
+Added: The provision for income tax in the current period led to an effective income tax rate ("ETR") of 19% for the three months ended September 30, 2024, compared to the ETR of 21% the three months ended September 30, 2023.
+Added: The change in the ETR during the three months ended September 30, 2024, compared to the three months ended September 30, 2023, was due to the relationship of the taxable income to the consolidated pre-tax income.
The ETR differs from the statutory rate of 21% primarily due to the dividends received deduction, utilization of foreign tax credits, and valuation allowance.
See Note 15 - Income Taxes of the Notes to Consolidated Financial Statements in our 2023 Annual Report and Note 15 - Income Taxes of the Notes to Condensed Consolidated Financial Statements in this report for more information.
−Removed: Six Months Ended June 30, 2024 compared to Six Months Ended June 30, 2023
+Added: Nine Months Ended September 30, 2024 compared to Nine Months Ended September 30, 2023
Pretax Income (Loss)
−Removed: Our pretax income (loss) increased by $1,810 million to $1,221 million for the six months ended June 30, 2024, from $(589) million for the six months ended June 30, 2023, primarily due to:
+Added: Our pretax income (loss) decreased by $2,271 million to $642 million for the nine months ended September 30, 2024, from $2,913 million for the nine months ended September 30, 2023, primarily due to:
+Added: • $3,058 million unfavorable movements in market risk benefits (gains) losses, net, primarily due to less favorable movements in interest rates and equity volatility, partially offset by favorable fund performance in 2024 compared to the prior year;
+Added: • $243 million increase in operating costs and other expenses, net of deferrals, primarily due to an increase in incentive and deferred compensation expenses during the nine months ended September 30, 2024 and higher asset-based non-deferrable commissions, due to higher account values during 2024, compared to the prior year period.
+Added: These movements were partially offset by:
• $490 million increase in total net gains (losses) on derivatives and investments as shown in the table below and driven by:
−Removed: Six Months Ended June 30,
+Added: Nine Months Ended September 30,
2024 2023 Variance
6 unchanged sentences
Total net gains (losses) on derivatives and investments $ (5,331) $ (5,821) $ 490
−Removed: ◦ Freestanding derivative movements were primarily driven by lower losses recognized on our equity derivatives resulting from lower market increases in 2024, compared to the prior year, partially offset by increased losses within our interest rate related hedge instruments resulting from increases in interest rates in 2024, compared to the prior year;
−Removed: ◦ Lower losses recognized on funds withheld reinsurance were driven by the increase in interest rates during 2024, compared to a slight decrease in interest rates in 2023;
−Removed: • $490 million favorable movements in market risk benefits (gains) losses, net, primarily due to increases in interest rates, which were partially offset by less favorable fund performance and movements in volatility in 2024 compared to the prior year;
−Removed: • $205 million increase in fee income primarily due to higher average separate account values compared to prior year;
−Removed: • $133 million increase in net investment income as a result of higher income on limited partnership investments, which are recorded on a one quarter lag, and higher income on bonds, driven primarily by higher yields in 2024, compared to prior year, partially offset by higher investment expenses;
−Removed: • $70 million decrease in death, other policy benefits, and change in policy reserves, net of (gain) loss from updating future policy benefits cash flow assumptions, primarily due to improved mortality and lower other policyholder benefits;
−Removed: • $34 million decrease in interest credited on contract holder funds, net of deferrals, primarily due to lower average general account balances in 2024, compared to the prior year.
−Removed: These movements were partially offset by:
−Removed: • $127 million increase in operating costs and other expenses, net of deferrals, primarily due to higher asset-based non-deferrable commissions, due to higher account values during 2024, compared to the prior year, and an increase in incentive compensation expenses during the six months ended June 30, 2024.
+Added: ◦ Embedded derivative movements were unfavorable primarily due to market increase impacts on our growing RILA block during the nine months ended September 30, 2024, compared to the prior year period;
+Added: ◦ Higher losses recognized on funds withheld reinsurance were driven by the decrease in interest rates impacting the value of the embedded derivative during 2024, compared to an increase in interest rates in 2023;
+Added: These losses were partially offset by:
+Added: ◦ Volumes of freestanding derivatives can vary significantly period over period and movements in those derivatives are subject to interest rate or market movements.
+Added: The movements in interest rate hedges during the nine months ended September 30, 2024 were primarily driven by a decrease in interest rates whereas the movements in interest rate hedges during the nine months ended September 30, 2023 were primarily driven by an increase in interest rates.
+Added: The movements in equity hedges during the nine months ended September 30, 2024 were primarily driven by increases in equity markets whereas the movements in equity hedges during the nine months ended September 30, 2023 were primarily driven by a decrease in equity markets.
Item 2 | Management’s Discussion and Analysis | Consolidated Results of Operations
−Removed: Income tax expense increased $450 million to an expense of $137 million for the six months ended June 30, 2024, from a benefit of $313 million for the six months ended June 30, 2023.
−Removed: The provision for income tax in the current period led to an ETR of 11% for the six months ended June 30, 2024 compared to the June 30, 2023 ETR of 53%.
−Removed: The change in the ETR during the six months ended June 30, 2024 compared to the six months ended June 30, 2023 was due to the relationship of the taxable income to the consolidated pre-tax income.
+Added: • $287 million increase in fee income primarily due to higher average separate account values compared to the prior year period;
+Added: • $98 million increase in net investment income as a result of higher income on limited partnership investments, which are recorded on a one quarter lag, and higher income on bonds, driven primarily by higher yields in 2024, compared to the prior year period, partially offset by higher investment expenses;
+Added: • $92 million decrease in death, other policy benefits, and change in policy reserves, net of (gain) loss from updating future policy benefits cash flow assumptions, primarily due to improved mortality and lower other policyholder benefits;
+Added: • $43 million decrease in interest credited on contract holder funds, net of deferrals, primarily due to lower average fixed account balances in 2024, compared to the prior year.
+Added: Income tax expense decreased $375 million to an expense of $24 million for the nine months ended September 30, 2024, from an expense of $399 million for the nine months ended September 30, 2023.
+Added: The provision for income tax in the current period led to an ETR of 4% for the nine months ended September 30, 2024 compared to the ETR of 14% the nine months ended September 30, 2023.
+Added: The change in the ETR during the nine months ended September 30, 2024 compared to the nine months ended September 30, 2023 was due to the relationship of the taxable income to the consolidated pre-tax income.
Our ETR differs from the statutory rate of 21% primarily due to the dividends received deduction, utilization of foreign tax credits and valuation allowance.
See Note 15 - Income Taxes of the Notes to Consolidated Financial Statements in our 2023 Annual Report and Note 15 - Income Taxes of the Notes to Condensed Consolidated Financial Statements in this report for more information.
+Added: Item 2 | Management’s Discussion and Analysis | Segment Results of Operations
Segment Results of Operations
6 unchanged sentences
Also, s ee Note 3 - Segment Information of the Notes to Condensed Consolidated Financial Statements for further information regarding the calculation of pretax adjusted operating earnings:
−Removed: Three Months Ended June 30, Six Months Ended June 30,
+Added: Three Months Ended September 30, Nine Months Ended September 30,
2024 2023 2024 2023
9 unchanged sentences
Fees attributable to guarantee benefit reserves 779 784 2,347 2,345
−Removed: Net movement in freestanding derivatives (1,083) (1,911) (3,659) (4,423)
+Added: Net (gains) losses on hedging instruments 591 (271) (3,068) (4,694)
Market risk benefits gains (losses), net (1,172) 2,376 2,062 5,120
19 unchanged sentences
The information contained in the table below should be read in conjunction with our Condensed Consolidated Financial Statements and the related notes appearing elsewhere in this report:
−Removed: Three Months Ended June 30, Six Months Ended June 30,
+Added: Three Months Ended September 30, Nine Months Ended September 30,
2024 2023 2024 2023
17 unchanged sentences
The following table summarizes a roll-forward of activity affecting account value for our Retail Annuities segment for the periods indicated:
−Removed: Three Months Ended June 30, Six Months Ended June 30,
+Added: Three Months Ended September 30, Nine Months Ended September 30,
2024 2023 2024 2023
13 unchanged sentences
Item 2 | Management’s Discussion and Analysis | Segment Results of Operations
−Removed: Three Months Ended June 30, 2024 compared to Three Months Ended June 30, 2023
+Added: Three Months Ended September 30, 2024 compared to Three Months Ended September 30, 2023
Pretax Adjusted Operating Earnings
−Removed: Pretax adjusted operating earnings increased $137 million to $465 million for the three months ended June 30, 2024, from $328 million for the three months ended June 30, 2023, primarily due to:
−Removed: • $100 million increase in fee income primarily due to higher average separate account values compared to the prior year;
−Removed: • $86 million increase in spread income primarily due to $74 million higher investment income driven by higher income on bonds due to higher asset balances earning higher yields in 2024, compared to the prior year quarter, partially offset by higher investment expenses related to repurchase agreements, and $12 million lower interest credited on contract holder funds compared to prior year.
+Added: Pretax adjusted operating earnings increased $104 million to $458 million for the three months ended September 30, 2024, from $354 million for the three months ended September 30, 2023, primarily due to:
+Added: • $90 million increase in fee income primarily due to higher average separate account values compared to the prior year quarter;
+Added: • $88 million increase in spread income primarily due to $86 million higher investment income and $2 million lower interest credited on contract holder funds compared to the prior year quarter.
+Added: Investment income was driven by higher income on bonds due to higher asset balances earning higher yields in 2024, compared to the prior year quarter, partially offset by higher investment expenses related to repurchase agreements.
These increases were partially offset by:
−Removed: • $72 million increase in operating costs and other expenses, net of deferrals, primarily due to higher asset-based non-deferrable commissions, due to higher account values during the three months ended June 30, 2024, compared to the prior year, and an increase in incentive compensation expenses during the three months ended June 30, 2024.
−Removed: Six Months Ended June 30, 2024 compared to Six Months Ended June 30, 2023
+Added: • $84 million increase in operating costs and other expenses, net of deferrals, primarily due to higher asset-based non-deferrable commissions, due to higher account values during the three months ended September 30, 2024, compared to the prior year quarter, and an increase in incentive compensation expenses during the three months ended September 30, 2024.
+Added: Nine Months Ended September 30, 2024 compared to Nine Months Ended September 30, 2023
Pretax Adjusted Operating Earnings
−Removed: Pretax adjusted operating earnings increased $200 million to $884 million for the six months ended June 30, 2024, from $684 million for the six months ended June 30, 2023, primarily due to:
−Removed: • $208 million increase in fee income primarily due to higher average separate account values compared to prior year;
−Removed: • $133 million increase in spread income primarily due to $111 million higher investment income driven by higher income on bonds driven by higher asset balances earning higher yields in 2024, compared to the prior year, partially offset by higher investment expenses related to repurchase agreements, and $22 million lower interest credited on contract holder funds compared to prior year.
+Added: Pretax adjusted operating earnings increased $304 million to $1,342 million for the nine months ended September 30, 2024, from $1,038 million for the nine months ended September 30, 2023, primarily due to:
+Added: • $298 million increase in fee income primarily due to higher average separate account values compared to the prior year period;
+Added: • $221 million increase in spread income primarily due to $197 million higher investment income driven by higher income on bonds driven by higher asset balances earning higher yields in 2024, compared to the prior year period, partially offset by higher investment expenses related to repurchase agreements, and $24 million lower interest credited on contract holder funds compared to the prior year period.
These increases were partially offset by:
−Removed: • $136 million increase in operating costs and other expenses, net of deferrals, primarily due to higher asset-based non-deferrable commissions, due to higher account values during 2024, and an increase in incentive compensation expenses during the six months ended June 30, 2024.
+Added: • $220 million increase in operating costs and other expenses, net of deferrals, primarily due to higher asset-based non-deferrable commissions, due to higher account values during 2024, and an increase in incentive compensation expenses during the nine months ended September 30, 2024.
Account Value
−Removed: Retail annuities account value, net of reinsurance, increased $19.9 billion between periods primarily due to positive variable annuity separate account returns driven by favorable market performance in 2024, as well as positive RILA net flows over the period.
+Added: Retail annuities account value, net of reinsurance, increased $38.2 billion over the prior year period primarily due to positive variable annuity separate account returns driven by favorable market performance in 2024, as well as positive RILA and fixed annuity net flows over the period.
Item 2 | Management’s Discussion and Analysis | Segment Results of Operations
2 unchanged sentences
The information contained in the table below should be read in conjunction with our Condensed Consolidated Financial Statements and the related notes appearing elsewhere in this report:
−Removed: Three Months Ended June 30, Six Months Ended June 30,
+Added: Three Months Ended September 30, Nine Months Ended September 30,
2024 2023 2024 2023
10 unchanged sentences
The following table summarizes a roll-forward of activity affecting account value for our Institutional Products segment for the periods indicated:
−Removed: Three Months Ended June 30, Six Months Ended June 30,
+Added: Three Months Ended September 30, Nine Months Ended September 30,
2024 2023 2024 2023
8 unchanged sentences
Balance as of end of period $ 7,929 $ 8,712 $ 7,929 $ 8,712
−Removed: Three Months Ended June 30, 2024 compared to Three Months Ended June 30, 2023
−Removed: Pretax Adjusted Operating Earnings
−Removed: Pretax adjusted operating earnings increased $12 million to $29 million for the three months ended June 30, 2024, from $17 million for the three months ended June 30, 2023, primarily due to an $12 million increase in spread income primarily due to $16 million higher investment income, partially offset by $4 million higher interest credited on contract holder funds.
−Removed: Six Months Ended June 30, 2024 compared to Six Months Ended June 30, 2023
+Added: Three Months Ended September 30, 2024 compared to Three Months Ended September 30, 2023
Pretax Adjusted Operating Earnings
−Removed: Pretax adjusted operating earnings increased $34 million to $60 million for the six months ended June 30, 2024, from $26 million for the six months ended June 30, 2023, primarily due to a $34 million increase in spread income primarily due to $43 million higher investment income, partially offset by $9 million higher interest credited on contract holder funds.
+Added: Pretax adjusted operating earnings decreased $4 million to $17 million for the three months ended September 30, 2024, from $21 million for the three months ended September 30, 2023, primarily due to a $4 million decrease in spread income primarily due to $8 million lower investment income, partially offset by $4 million lower interest credited on contract holder funds.
Item 2 | Management’s Discussion and Analysis | Segment Results of Operations
+Added: Nine Months Ended September 30, 2024 compared to Nine Months Ended September 30, 2023
+Added: Pretax Adjusted Operating Earnings
+Added: Pretax adjusted operating earnings increased $30 million to $77 million for the nine months ended September 30, 2024, from $47 million for the nine months ended September 30, 2023, primarily due to a $30 million increase in spread income primarily due to $35 million higher investment income, partially offset by $5 million higher interest credited on contract holder funds.
Account Value
−Removed: Institutional product account value decreased from $8,887 million at June 30, 2023, to $7,299 million at June 30, 2024.
−Removed: The decrease in account value was driven by continued maturities of the existing contracts and funding agreements in addition to decreased issuances in 2024.
+Added: Institutional product account value decreased from $8,712 million at September 30, 2023, to $7,929 million at September 30, 2024.
+Added: The decrease in account value was driven by continued maturities of the existing contracts and funding agreements.
Closed Life and Annuity Blocks
−Removed: The following table sets forth, for the periods presented, certain data underlying the pretax adjusted operating earnings results for our Closed Block Life and Annuity Blocks segment.
+Added: The following table sets forth, for the periods presented, certain data underlying the pretax adjusted operating earnings results for our Closed Life and Annuity Blocks segment.
The information contained in the table below should be read in conjunction with our Condensed Consolidated Financial Statements and the related notes appearing elsewhere in this report:
−Removed: Three Months Ended June 30, Six Months Ended June 30,
+Added: Three Months Ended September 30, Nine Months Ended September 30,
2024 2023 2024 2023
15 unchanged sentences
Pretax Adjusted Operating Earnings $ 7 $ 6 $ 61 $ (7)
−Removed: Three Months Ended June 30, 2024 compared to Three Months Ended June 30, 2023
+Added: Three Months Ended September 30, 2024 compared to Three Months Ended September 30, 2023
Pretax Adjusted Operating Earnings
−Removed: Pretax adjusted operating earnings increased $28 million to $35 million for the three months ended June 30, 2024, from $7 million for the three months ended June 30, 2023, primarily due to:
−Removed: • $23 million decrease in death, other policy benefits, and change in policy reserves, net of (gain) loss from updating future policy benefits cash flow assumptions, primarily due to improved mortality and lower other policyholder benefits;
−Removed: • $14 million decrease in interest credited on contract holder funds related to persistency bonuses in 2023.
+Added: Pretax adjusted operating earnings increased $1 million to $7 million for the three months ended September 30, 2024, from $6 million for the three months ended September 30, 2023, primarily due to a $12 million decrease in death, other policy benefits, and change in policy reserves, net of (gain) loss from updating future policy benefits cash flow assumptions, primarily due to lower other policyholder benefits, partially offset by an $8 million decrease in premiums.
Item 2 | Management’s Discussion and Analysis | Segment Results of Operations
−Removed: Six Months Ended June 30, 2024 compared to Six Months Ended June 30, 2023
+Added: Nine Months Ended September 30, 2024 compared to Nine Months Ended September 30, 2023
Pretax Adjusted Operating Earnings
−Removed: Pretax adjusted operating earnings increased $67 million to $54 million for the six months ended June 30, 2024, from $(13) million for the six months ended June 30, 2023, primarily due to:
+Added: Pretax adjusted operating earnings increased $68 million to $61 million for the nine months ended September 30, 2024, from $(7) million for the nine months ended September 30, 2023, primarily due to:
• $62 million decrease in death, other policy benefits, and change in policy reserves, net of (gain) loss from updating future policy benefits cash flow assumptions, primarily due to improved mortality and lower other policyholder benefits;
• $24 million decrease in interest credited on contract holder funds related to persistency bonuses in 2023.
+Added: These increases were partially offset by:
+Added: • $22 million decrease in premiums as the closed block of life business continues to run off.
Corporate and Other
2 unchanged sentences
The information contained in the table below should be read in conjunction with our Condensed Consolidated Financial Statements and the related notes appearing elsewhere in this report:
−Removed: Three Months Ended June 30, Six Months Ended June 30,
+Added: Three Months Ended September 30, Nine Months Ended September 30,
2024 2023 2024 2023
11 unchanged sentences
Pretax Adjusted Operating Earnings $ (71) $ (26) $ (207) $ (116)
−Removed: Three Months Ended June 30, 2024 compared to Three Months Ended June 30, 2023
+Added: Three Months Ended September 30, 2024 compared to Three Months Ended September 30, 2023
Pretax Adjusted Operating Earnings
−Removed: Pretax adjusted operating earnings decreased $9 million to $(56) million for the three months ended June 30, 2024, from $(47) million for the three months ended June 30, 2023, primarily due to a $9 million decrease in other income and an $8 million decrease in net investment income partially offset by a $7 million decrease in operating costs and other expenses, net of deferrals, primarily due to decreased deferred compensation expenses during the three months ended June 30, 2024.
−Removed: Six Months Ended June 30, 2024 compared to Six Months Ended June 30, 2023
+Added: Pretax adjusted operating earnings decreased $45 million to $(71) million for the three months ended September 30, 2024, from $(26) million for the three months ended September 30, 2023, primarily driven by a $33 million increase in operating costs and other expenses, net of deferrals, due to increased deferred and incentive compensation expenses during the three months ended September 30, 2024 and a $14 million decrease in net investment income.
+Added: Item 2 | Management’s Discussion and Analysis | Segment Results of Operations
+Added: Nine Months Ended September 30, 2024 compared to Nine Months Ended September 30, 2023
Pretax Adjusted Operating Earnings
−Removed: Pretax adjusted operating earnings decreased $46 million to $(136) million for the six months ended June 30, 2024, from $(90) million for the six months ended June 30, 2023, primarily due to a $25 million decrease in other income primarily due to a one-time reinsurance related adjustment and a $22 million decrease in net investment income.
−Removed: Item 2 | Management’s Discussion and Analysis | Investments
+Added: Pretax adjusted operating earnings decreased $91 million to $(207) million for the nine months ended September 30, 2024, from $(116) million for the nine months ended September 30, 2023, primarily driven by to a $36 million decrease in net investment income, a $35 million increase in operating costs and other expenses, net of deferrals, due to increased deferred and incentive compensation expenses, and a $27 million decrease in other income primarily due to a one-time reinsurance related adjustment.
Our investment portfolio primarily consists of fixed-income securities and loans, publicly-traded corporate and government bonds, private securities and loans, asset-backed securities and mortgage loans.
11 unchanged sentences
We may also use other third-party investment managers for certain niche asset classes.
−Removed: As of June 30, 2024, Apollo managed $15.1 billion of cash and investments and other third-party investment managers managed approximately $225 million of investments.
+Added: As of September 30, 2024, Apollo managed $14.7 billion of cash and investments and other third-party investment managers managed approximately $242 million of investments.
Our Investment Committee has specified a target strategic asset allocation (“SAA”) that is designed to deliver the highest expected return within a defined risk tolerance while meeting other important objectives such as those mentioned in the prior paragraph.
2 unchanged sentences
While PPM has access to a broad universe of potential investments, we believe grounding the investment program with a customized public corporate index that can be easily tracked and monitored helps guide PPM in meeting the risk and return expectations and assists with performance evaluation.
+Added: Item 2 | Management’s Discussion and Analysis | Investments
Recognizing the trade-offs between the level of risk, required capital, liquidity and investment return, the largest allocation within our investment portfolio is to investment grade fixed income securities.
3 unchanged sentences
Treasury securities, while lower yielding than other alternatives, provide a higher level of liquidity and play a role in managing our interest rate exposure.
−Removed: Item 2 | Management’s Discussion and Analysis | Investments
Portfolio Composition
The following table summarizes the carrying values of our investments:
−Removed: June 30, 2024 December 31, 2023
+Added: September 30, 2024 December 31, 2023
Investments excluding Funds Withheld Funds Withheld Total Investments excluding Funds Withheld Funds Withheld Total
10 unchanged sentences
Total investments $ 44,961 $ 18,042 $ 63,003 $ 41,319 $ 19,536 $ 60,855
−Removed: Available-for-sale debt securities decreased to $40,352 million at June 30, 2024, from $40,422 million at December 31, 2023.
−Removed: The amortized cost of available-for-sale debt securities increased to $45,301 million as of June 30, 2024, from $44,843 million as of December 31, 2023.
−Removed: Further, net unrealized losses, after adjusting for allowance for credit loss, were $4,921 million as of June 30, 2024, compared to $4,401 million as of December 31, 2023.
+Added: Available-for-sale debt securities increased to $42,289 million at September 30, 2024, from $40,422 million at December 31, 2023.
+Added: The amortized cost of available-for-sale debt securities increased to $45,536 million as of September 30, 2024, from $44,843 million as of December 31, 2023.
+Added: Further, net unrealized losses, after adjusting for allowance for credit loss, were $3,203 million as of September 30, 2024, compared to $4,401 million as of December 31, 2023.
Other Invested Assets
−Removed: Other invested assets increased to $2,673 million at June 30, 2024 from $2,466 million at December 31, 2023 .
+Added: Other invested assets increased to $2,747 million at September 30, 2024 from $2,466 million at December 31, 2023 .
Item 2 | Management’s Discussion and Analysis | Investments
Debt Securities
−Removed: At June 30, 2024 and December 31, 2023, the amortized cost, allowance for credit loss, 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):
−Removed: June 30, 2024 Amortized
+Added: At September 30, 2024 and December 31, 2023, the amortized cost, allowance for credit loss, 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):
+Added: September 30, 2024 Amortized
Cost Allowance for Credit Loss Gross
57 unchanged sentences
The following table summarizes our holdings:
−Removed: June 30, December 31,
+Added: September 30, December 31,
(in millions)
3 unchanged sentences
Total $ 213 $ 394
−Removed: Item 2 | Management’s Discussion and Analysis | Investments
Mortgage Loans
−Removed: At June 30, 2024, commercial mortgage loans were collateralized by properties located in 36 states, the District of Columbia, and Europe.
+Added: At September 30, 2024, commercial mortgage loans were collateralized by properties located in 36 states, the District of Columbia, and Europe.
Residential mortgage loans were collateralized by properties located in 49 states, the District of Columbia, Mexico, and Europe.
+Added: Item 2 | Management’s Discussion and Analysis | Investments
The table below presents the carrying value, net of allowance of credit loss, of our mortgage loans by property type:
−Removed: June 30, December 31,
+Added: September 30, December 31,
(in millions)
9 unchanged sentences
Total $ 9,996 $ 10,563
−Removed: (1) N et of an allowance for credit losses of $155 million and $160 million at June 30, 2024 and December 31, 2023, respectively.
−Removed: (2) Net of an allowance for credit losses of $5 million and $5 million at June 30, 2024 and December 31, 2023, respectively.
+Added: (1) N et of an allowance for credit losses of $143 million and $160 million at September 30, 2024 and December 31, 2023, respectively.
+Added: (2) Net of an allowance for credit losses of $5 million and $5 million at September 30, 2024 and December 31, 2023, respectively.
The table below presents the carrying value, net of allowance for credit loss, of our mortgage loans by region:
−Removed: June 30, December 31,
+Added: September 30, December 31,
(in millions)
14 unchanged sentences
The following table provides information about the credit quality of our mortgage loans:
−Removed: June 30, December 31,
+Added: September 30, December 31,
(in millions)
11 unchanged sentences
Total mortgage loans $ 9,996 $ 10,563
−Removed: (1) As of June 30, 2024 and December 31, 2023, includes $20 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, respectively, and are supported with insurance or other guarantees provided by various governmental programs.
+Added: (1) As of September 30, 2024 and December 31, 2023, includes $18 million and $22 million of loans purchased when the loans were greater than 90 days delinquent and $3 million and $5 million of loans in process of foreclosure, respectively, and are supported with insurance or other guarantees provided by various governmental programs.
The following table provides a summary of the allowance for credit losses related to our mortgage loans:
+Added: September 30,
(in millions)
Balance at beginning of year $ 165 $ 95
+Added: Charge offs, net of recoveries (3) —
Provision (release) (1)
Balance at end of period $ 148 $ 200
+Added: (1) At September 30, 2023, the $105 million allowance for credit losses are primarily from two mezzanine loans experiencing stress around payoff, or refinance, of the loans for which the Company continues to assess options with the lending group and borrowers.
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.
−Removed: Accrued interest amounting to $1 million and $2 million were written off as of June 30, 2024 and 2023, respectively, relating to loans that were greater than 90 days delinquent or in the process of foreclosure.
+Added: Accrued interest amounting to $1 million and $2 million were written off as of September 30, 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):
−Removed: June 30, 2024 December 31, 2023
+Added: September 30, 2024 December 31, 2023
Recorded investment $ 32 $ 24
3 unchanged sentences
Investment income recognized — 1
−Removed: Derivative Instruments
−Removed: Note 5 – Derivative Instruments of the Notes to Condensed Consolidated Financial Statements presents the aggregate contractual or notional amounts and the fair values of our freestanding and embedded derivatives instruments as of June 30, 2024 and December 31, 2023.
Item 2 | Management’s Discussion and Analysis | Investments
+Added: Derivative Instruments
+Added: Note 5 – Derivative Instruments of the Notes to Condensed Consolidated Financial Statements presents the aggregate contractual or notional amounts and the fair values of our freestanding and embedded derivatives instruments as of September 30, 2024 and December 31, 2023.
Evaluation of Invested Assets
16 unchanged sentences
Our policy and contract liabilities includes separate account liabilities, reserves for future policy benefits and claims payable and other contract holder funds.
−Removed: As of June 30, 2024, 90% of our policy and contract liabilities were in our Retail Annuities segment, 3% were in our Institutional Products segment and 7% were in our Closed Life and Annuity Blocks segment.
−Removed: The tables below represents a breakdown of our policy and contract liabilities:
−Removed: June 30, 2024 Separate Accounts Reserves for future policy benefits Other contract holder funds Market Risk Benefits Total
+Added: As of September 30, 2024, 90% of our policy and contract liabilities were in our Retail Annuities segment, 3% were in our Institutional Products segment and 7% were in our Closed Life and Annuity Blocks segment.
+Added: Item 2 | Management’s Discussion and Analysis | Policy and Contract Liabilities
+Added: The tables below represent a breakdown of our policy and contract liabilities:
+Added: September 30, 2024 Separate Accounts Reserves for future policy benefits Other contract holder funds Market Risk Benefits Total
(in millions)
12 unchanged sentences
Total $ 235,037 $ 11,543 $ 57,334 $ (3,231) $ 300,683
−Removed: Item 2 | Management’s Discussion and Analysis | Policy and Contract Liabilities
December 31, 2023 Separate Accounts Reserves for future policy benefits Other contract holder funds Market Risk Benefits Total
13 unchanged sentences
Total $ 219,656 $ 11,898 $ 55,319 $ (1,952) $ 284,921
−Removed: (1) Includes the embedded derivative liabilities in other contract holder funds related to RILA of $2,124 million and $1,224 million at June 30, 2024 and December 31, 2023, respectively.
−Removed: (2) Includes the embedded derivative liabilities related to fixed index annuity in other contract holder funds of $858 million and $866 million at June 30, 2024 and December 31, 2023, respectively.
−Removed: As of June 30, 2024:
+Added: (1) Includes the embedded derivative liabilities in other contract holder funds related to RILA of $2,799 million and $1,224 million at September 30, 2024 and December 31, 2023, respectively.
+Added: (2) Includes the embedded derivative liabilities related to fixed index annuity in other contract holder funds of $825 million and $866 million at September 30, 2024 and December 31, 2023, respectively.
+Added: Item 2 | Management’s Discussion and Analysis | Policy and Contract Liabilities
+Added: As of September 30, 2024:
• $235 billion or 79% of our policy and contract liabilities were backed by separate account assets.
3 unchanged sentences
• $16.1 billion of our policy and contract liabilities were reinsured by Athene and backed by funds withheld assets.
−Removed: As of June 30, 2024, 100% of our RILA policy and contract liabilities were subject to surrender charges of at least 5% or at market value in the event of discretionary withdrawal by customers.
−Removed: As of June 30, 2024, 94% of fixed annuity, fixed-indexed annuity, and the fixed accounts of RILA and variable annuity correspond to crediting rates that are at the guaranteed minimum crediting rate.
+Added: As of September 30, 2024, 94% of fixed annuity, fixed-indexed annuity, and the fixed accounts of RILA and variable annuity correspond to crediting rates that are at the guaranteed minimum crediting rate.
We have the discretion, subject to contractual limitations and minimums, to reset the crediting terms on the majority of our fixed index annuities and fixed annuities.
4 unchanged sentences
Our ability to generate and maintain sufficient liquidity and capital depends on the profitability of the businesses, timing of cash flows on investments and products, general economic conditions and access to the capital markets and alternate sources of liquidity and capital described herein.
−Removed: The discussion below describes our liquidity and capital resources for the three months ended June 30, 2024, and 2023 .
−Removed: Item 2 | Management’s Discussion and Analysis | Liquidity and Capital Resources
+Added: The discussion below describes our liquidity and capital resources for the nine months ended September 30, 2024 and 2023.
The following table presents a summary of our cash flow activity for the periods set forth below:
−Removed: Six Months Ended June 30,
+Added: Nine Months Ended September 30,
(in millions)
9 unchanged sentences
The primary liquidity concern with respect to these cash flows is the risk of earlier than expected contract holder and policyholder benefit payments.
−Removed: Cash flows provided by (used in) operating activities increased $357 million during the six months ended June 30, 2024, to $2,904 million for the six months ended June 30, 2024, from $2,547 million for the six months ended June 30, 2023.
+Added: Cash flows provided by (used in) operating activities increased $592 million to $4,268 million for the nine months ended September 30, 2024, from $3,676 million for the nine months ended September 30, 2023.
This was primarily due to the timing of settlements of receivables and payables.
+Added: Item 2 | Management’s Discussion and Analysis | Liquidity and Capital Resources
Cash flows from Investing Activities
4 unchanged sentences
The primary liquidity concerns with respect to these cash flows are the risk of default by debtors or market disruptions that might impact the timing of investment related cash flows as well as derivative collateral needs, which could result in material liquidity needs for our insurance subsidiaries.
−Removed: Cash flows provided by (used in) investing activities decreased $1,116 million to $(3,920) million during the six months ended June 30, 2024, from $(2,804) million during the six months ended June 30, 2023.
−Removed: This decrease was primarily driven by increased purchases of debt securities, primarily driven by increased RILA issuances in 2024, partially offset by lower outflows related to our hedging program for derivative settlements and collateral.
+Added: Cash flows provided by (used in) investing activities decreased $3,636 million to $(4,321) million during the nine months ended September 30, 2024, from $(685) million during the nine months ended September 30, 2023.
+Added: This decrease was primarily driven by increased purchases of debt securities, primarily driven by increased RILA and fixed annuity issuances in 2024, partially offset by lower outflows related to our hedging program for derivative settlements and collateral.
Cash flows from Financing Activities
2 unchanged sentences
The primary liquidity concerns with respect to these cash flows are market disruption and the risk of early policyholder withdrawal.
−Removed: Cash flows provided by (used in) financing activities increased $2,005 million to $64 million during the six months ended June 30, 2024, from $(1,941) million during the six months ended June 30, 2023.
−Removed: This increase was primarily due to higher deposits from increased RILA sales in 2024 in addition to higher proceeds from repurchase agreements in 2024, partially offset by the proceeds we received in the prior year from the issuance of our preferred stock.
−Removed: Item 2 | Management’s Discussion and Analysis | Liquidity and Capital Resources
+Added: Cash flows provided by (used in) financing activities increased $4,950 million to $423 million during the nine months ended September 30, 2024, from $(4,527) million during the nine months ended September 30, 2023.
+Added: This increase was primarily due to higher deposits from increased RILA and fixed sales in 2024 in addition to higher proceeds from repurchase agreements in 2024, partially offset by the proceeds we received in the prior year period from the issuance of our preferred stock.
Statutory Capital
4 unchanged sentences
The formula is used as an early warning regulatory tool to identify possible inadequately capitalized insurers for purposes of initiating regulatory action, and not to rank insurers generally.
−Removed: As of June 30, 2024, our insurance companies were well in excess of the minimum required capital levels.
+Added: As of September 30, 2024, our insurance companies were well in excess of the minimum required capital levels.
With the execution of the Brooke Re transaction in the first quarter of 2024, we are able to largely moderate the impact of the cash surrender value floor going forward.
−Removed: In the past, our statutory TAC (total adjusted capital) may have been negatively impacted by minimum required reserving levels (i.e., cash surrender value floor) when reserve releases were limited and unable to offset losses from our hedging program.
+Added: In the past, our statutory TAC (total adjusted capital) may have been negatively impacted by minimum required reserving levels ( i.e.
+Added: , cash surrender value floor) when reserve releases were limited and unable to offset losses from our hedging program.
+Added: Item 2 | Management’s Discussion and Analysis | Liquidity and Capital Resources
Holding Company Liquidity
5 unchanged sentences
Any declaration of cash dividends or stock repurchases is 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 other contractual restrictions with respect to paying cash dividends or repurchasing stock, 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.
−Removed: Therefore, there can be no assurance that we will pay any cash dividends to holders of our stock or approve any further increase in the existing, or any new, common stock repurchase program, or as to the amount of any such cash dividends or stock repurchases.
+Added: Therefore, there can be no assurance that we will pay any cash dividends to holders of our stock or approve any further increase in the existing, or any new, common stock repurchase program, or no assurance as to the amount of any such cash dividends or stock repurchases.
Under Delaware law, dividends may be paid, or stock may be repurchased out of “surplus,” or out of the current or the immediately preceding year's earnings.
4 unchanged sentences
The states in which our insurance subsidiaries are domiciled impose certain restrictions on our insurance subsidiaries’ ability to pay dividends to their parent companies.
−Removed: These restrictions are based in part on the prior year’s statutory income and surplus, as well as earned surplus.
+Added: See “Distributions from our Insurance Company Subsidiaries” below for a discussion of those restrictions .
Such restrictions, or any future restrictions adopted by the states in which our insurance subsidiaries are domiciled, could have the effect, under certain circumstances, of significantly reducing dividends or other amounts payable by our subsidiaries without affirmative approval of state regulatory authorities.
See “Risk Factors—Risks relating to Financing and Liquidity - As a holding company, Jackson Financial depends on the ability of its subsidiaries to pay dividends and make other distributions to meet its obligations and liquidity needs, including servicing debt, dividend payments and stock repurchases” in our 2023 Annual Report.
−Removed: Item 2 | Management’s Discussion and Analysis | Liquidity and Capital Resources
On March 13, 2023, the Company issued and sold depositary shares representing interests in our Fixed-Rate Reset Noncumulative Perpetual Preferred Stock, Series A.
After underwriting discounts and expenses, we received net proceeds of approximately $533 million.
−Removed: See Note 19 - Equity of the Notes to Condensed Consolidated Financial Statements for more information.
−Removed: During the second quarter of 2024, we paid a cash dividend of $0.50 per depositary share and $0.70 per share on JFI's preferred and common stock totaling $11 million and $54 million, respectively.
−Removed: On August 1, 2024, our Board of Directors approved a third quarter cash dividend on JFI's common stock, $0.70 per share, payable on September 19, 2024, to common shareholders of record on September 5, 2024.
+Added: See Note 19 - Equity of the Notes to Condensed Consolidated Financial Statements for more information, including restrictions on common stock dividends and repurchases if a quarterly dividend on preferred stock is not declared and paid.
+Added: During the third quarter of 2024, we paid a cash dividend of $0.50 per depositary share and $0.70 per share on JFI's preferred and common stock totaling $11 million and $54 million, respectively.
+Added: On November 1, 2024, our Board of Directors approved a cash dividend for the fourth quarter on JFI's common stock, $0.70 per share, payable on December 19, 2024, to common shareholders of record on December 5, 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.
−Removed: The dividend will be payable on September 30, 2024, to preferred shareholders of record at the close of business on September 5, 2024.
+Added: The dividend will be payable on December 30, 2024, to preferred shareholders of record at the close of business on December 5, 2024.
+Added: Item 2 | Management’s Discussion and Analysis | Liquidity and Capital Resources
On August 1, 2024, our Board of Directors authorized an increase of $750 million in our existing authorization to repurchase shares of our outstanding common stock as part of the Company's share repurchase program.
−Removed: We repurchased a total of 1,294,473 shares and 3,451,845 shares of common stock for an aggregate purchase price of $90 million and $206 million in the three and six months ended June 30, 2024, respectively, which were funded with cash on hand.
+Added: We repurchased a total of 1,352,821 shares and 4,804,666 shares of common stock for an aggregate purchase price of $113 million and $319 million in the three and nine months ended September 30, 2024, respectively, which were funded with cash on hand.
See Note 19 - Equity of the Notes to Condensed Consolidated Financial Statements in this report for further information on dividends to shareholders and share repurchases .
−Removed: As of June 30, 2024, Jackson Financial has recorded an estimated liability balance of $ 94 million for the provision of the Federal corporate alternative minimum tax ("CAMT") based on the Company’s interpretation of available guidance with an offsetting deferred tax asset for $ 94 million of credit carryover that could be used to offset future tax liabilities.
−Removed: At the JFI Consolidated level an estimated liability of $ 273 million was recorded with a deferred tax asset for $428 million of credit carryover.
+Added: At a holding company level, Jackson Financial has recorded a decrease of $ 94 million for the three months ended September 30, 2024 resulting in an estimated liability and deferred tax balance of nil for provision of the Federal corporate alternative minimum tax (“CAMT”), based on the Company's interpretation of available guidance, as of September 30, 2024.
+Added: At the JFI Consolidated level, an estimated $ 7 million was recorded with an offsetting deferred tax asset of $7 million of credit carryover which will reduce future tax liabilities.
Distributions from our Insurance Company Subsidiaries
7 unchanged sentences
In New York, all dividends require approval from the New York State Department of Financial Services.
−Removed: Item 2 | Management’s Discussion and Analysis | Liquidity and Capital Resources
For 2024, ordinary dividend capacity for Jackson and Brooke Life is based on the greater of 10% of 2023 reported statutory capital and surplus or statutory net gain from operations.
This capacity is then reduced by cumulative dividends and other capital distributions in the preceding 12 months, subject to the availability of earned surplus.
−Removed: As a result of cumulative dividends and other capital distributions occurring in the preceding 12 months as of June 30, 2024, including the January 2024 distributions to establish Brooke Re, future dividends from both Jackson and Brooke Life are expected to be classified as extraordinary.
+Added: As a result of cumulative dividends and other capital distributions occurring in the preceding 12 months as of September 30, 2024, including the January 2024 distributions to establish Brooke Re, future dividends from both Jackson and Brooke Life are expected to be classified as extraordinary.
There is a process within the Michigan Insurance Code to request extraordinary dividends that the companies have utilized previously.
Brooke Life, as the sole owner of Jackson and Brooke Re, is the direct recipient of any dividend payments from those subsidiaries and must make dividend payments to its ultimate parent company, Jackson Financial, in order for any funds from our insurance company subsidiaries to reach Jackson Financial.
+Added: Item 2 | Management’s Discussion and Analysis | Liquidity and Capital Resources
The maximum distribution permitted by law or contract is not necessarily indicative of an insurer’s actual ability to pay such distributions, which may be constrained by business and other considerations, such as imposition of withholding tax, the impact of such distributions on surplus, which could affect the insurer’s credit and financial strength ratings or competitive position, the ability to generate new annuity sales and the ability to pay future dividends or make other distributions.
3 unchanged sentences
Given recent economic events that have affected the insurance industry, both regulators and rating agencies could become more conservative in their methodology and criteria, including increasing capital requirements for insurance company subsidiaries.
−Removed: We believe our insurance company subsidiaries have sufficient statutory capital and surplus to maintain their desired financial strength rating.
−Removed: In connection with the formation of Brook Re, Jackson remitted a $1,920 million return of capital to its parent company, Brooke Life in the first quarter of 2024.
+Added: We believe our insurance company subsidiaries have sufficient statutory capital and surplus to maintain their desired financial strength ratings.
+Added: In connection with the formation of Brooke Re, Jackson remitted a $1,920 million return of capital to its parent company, Brooke Life, in the first quarter of 2024.
Brooke Life subsequently made a $1,870 million capital contribution to its subsidiary, Brooke Re.
2 unchanged sentences
In addition, for the three months ended March 31, 2024, Brooke Life paid $45 million of interest associated with the $2 billion surplus note between Brooke Life and Jackson Finance, LLC ("Jackson Finance"), a subsidiary of Jackson Financial.
+Added: On September 12, 2024, Jackson paid a $300 million extraordinary dividend to its parent company, Brooke Life.
+Added: Brooke Life subsequently remitted a $255 million return of capital to its ultimate parent, Jackson Financial.
+Added: In addition, for the three months ended September 30, 2024, Brooke Life paid $45 million of interest associated with the $2 billion surplus note between Brooke Life and Jackson Finance.
Insurance Company Subsidiaries’ Liquidity
2 unchanged sentences
Liquidity requirements are principally for purchases of new investments, management of derivative-related margin requirements, repayment of principal and interest on debt, payments of interest on surplus notes, funding of insurance product liabilities including payments for policy benefits, surrenders, maturities and new policy loans, funding of expenses including payment of commissions, operating expenses and taxes.
−Removed: As of June 30, 2024, Jackson’s outstanding surplus notes and bank debt included $53 million of bank loans from the Federal Home Loan Bank of Indianapolis ("FHLBI"), collateralized by mortgage-related securities and mortgage loans and $250 million of surplus notes maturing in 2027.
−Removed: Item 2 | Management’s Discussion and Analysis | Liquidity and Capital Resources
+Added: As of September 30, 2024, Jackson’s outstanding surplus notes and bank debt included $52 million of bank loans from the Federal Home Loan Bank of Indianapolis ("FHLBI"), collateralized by mortgage-related securities and mortgage loans and $250 million of surplus notes maturing in 2027.
Significant increases in interest rates could create sudden increases in surrender and withdrawal requests by customers and contract holders and result in increased liquidity requirements at our insurance company subsidiaries.
4 unchanged sentences
Collateral posting requirements can result in material liquidity needs for our insurance subsidiaries.
−Removed: As of June 30, 2024, we were in a net collateral payable position of $116 million, which is down from $780 million as of December 31, 2023.
+Added: As of September 30, 2024, we were in a net collateral payable position of $124 million, which is down from $780 million as of December 31, 2023.
+Added: Item 2 | Management’s Discussion and Analysis | Liquidity and Capital Resources
Other factors that are not directly related to interest rates can also give rise to an increase in liquidity requirements including, changes in ratings from rating agencies, general policyholder concerns relating to the life insurance industry (e.g., the unexpected default of a large, unrelated life insurer) and competition from other products, including non-insurance products such as mutual funds, certificates of deposit and newly developed investment products.
Most of the life insurance and annuity products Jackson offers permit the policyholder or contract holder to withdraw or borrow funds or surrender cash values.
−Removed: As of June 30, 2024, approximately half of Jackson’s general account reserves are not surrenderable, included surrender charges greater than 5%, or included market value adjustments to discourage early withdrawal of policy and contract funds.
−Removed: The liquidity sources for our insurance company subsidiaries include their cash, short-term investments, sales of publicly-traded bonds, insurance premiums, fees charged on our products, sales of annuities and institutional products, investment income, commercial repurchase agreements and utilization of a short-term borrowing facility with the FHLBI.
+Added: As of September 30, 2024, 100% of our RILA policy and contract liabilities were subject to surrender charges of at least 5% or at market value in the event of discretionary withdrawal by customers.
+Added: Further, approximately half of Jackson’s general account reserves are not surrenderable, included surrender charges greater than 5%, or included market value adjustments to discourage early withdrawal of policy and contract funds as of September 30, 2024.
+Added: The liquidity sources for our insurance company subsidiaries include their cash, short-term investments, sales of publicly-traded bonds, insurance premiums, fees charged on their products, sales of annuities and institutional products, investment income, commercial repurchase agreements and utilization of a short-term borrowing facility with the FHLBI.
Jackson uses a variety of asset liability management techniques to provide for the orderly provision of cash flow from investments and other sources as policies and contracts mature in accordance with their normal terms.
Jackson’s principal sources of liquidity to meet unexpected cash outflows associated with sudden and severe increases in surrenders and withdrawals or benefit payments are its portfolio of liquid assets and its net operating cash flows.
−Removed: As of June 30, 2024, the portfolio of cash, short-term investments and privately and publicly traded securities and equities that are unencumbered and unrestricted to sale, amounted to $21.2 billion.
+Added: As of September 30, 2024, the portfolio of cash, short-term investments and privately and publicly traded securities and equities that are unencumbered and unrestricted to sale, amounted to $26.3 billion.
Our Indebtedness
10 unchanged sentences
The applicable adder is based upon the ratings assigned to the Company’s senior, unsecured, non-credit enhanced debt.
−Removed: Item 2 | Management’s Discussion and Analysis | Liquidity and Capital Resources
−Removed: The credit agreement governing the 2023 Revolving Credit Facility contains a number of customary representations and warranties, affirmative and negative covenants and events of default (including a change of control provision).
−Removed: The credit agreement contains financial maintenance covenants, including a minimum adjusted consolidated net worth test of no less than 70% of our adjusted consolidated net worth as of September 30, 2022 (plus (to the extent positive) or minus (to the extent negative) 70% of the impact on such adjusted consolidated net worth resulting from the application of a one-time transition adjustment for the LDTI accounting change for insurance contracts, and plus 50% of the aggregate amount of any increase in adjusted consolidated net worth resulting from equity issuances by the Company and its consolidated subsidiaries after September 30, 2022) and a maximum consolidated indebtedness to total capitalization ratio test not to exceed 35%.
−Removed: We were in compliance with these covenants at June 30, 2024.
+Added: See Note 13 – Long-Term Debt of Notes to Condensed Consolidated Financial Statements for information regarding Financial maintenance covenants contained in the credit agreement.
+Added: We were in compliance with these covenants at September 30, 2024.
Jackson is a party to an Uncommitted Money Market Line Credit Agreement dated April 6, 2023, among Jackson, Jackson Financial, and Société Générale.
3 unchanged sentences
Jackson and Jackson Financial are jointly and severally liable to repay any advance under the agreement, which must be repaid prior to the last day of the quarter in which the advance was drawn.
+Added: Item 2 | Management’s Discussion and Analysis | Liquidity and Capital Resources
Surplus Notes
2 unchanged sentences
Interest is payable semi-annually on March 15th and September 15th of each year.
−Removed: Interest expense on the notes was $5 million and $10 million for the three and six months ended June 30, 2024, respectively and interest expense on the notes was $7 million and $12 million for the three and six months ended June 30, 2023, respectively.
−Removed: Under Michigan insurance law, for statutory reporting purposes, the surplus notes are not part of the legal liabilities of the Company and are considered surplus funds.
+Added: Interest expense on the notes was $5 million and $15 million for the three and nine months ended September 30, 2024, respectively and interest expense on the notes was $6 million and $18 million for the three and nine months ended September 30, 2023, respectively.
+Added: Under Michigan insurance law, for statutory reporting purposes, the surplus notes are not part of the legal liabilities of Jackson and are considered surplus funds.
Payments of interest or principal may only be made with the prior approval of the Michigan Director of Insurance and only out of surplus earnings that the Director determines to be available for such payments under Michigan insurance law.
3 unchanged sentences
Advances are in the form of either notes or funding agreements issued to FHLBI.
−Removed: As of June 30, 2024 and December 31, 2023, Jackson held a bank loan with an outstanding balance of $53 million and $57 million, respectively.
+Added: As of September 30, 2024 and December 31, 2023, Jackson held a bank loan with an outstanding balance of $52 million and $57 million, respectively.
Collateral Upgrade Transactions
−Removed: 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.
+Added: During the first quarter of 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.
4 unchanged sentences
These transactions do not have a stated maturity and require at least 150-days' notice prior to termination.
−Removed: Item 2 | Management’s Discussion and Analysis | Liquidity and Capital Resources
Financial Strength Ratings
7 unchanged sentences
Financial strength ratings are not recommendations to buy, sell or hold securities and may be revised or revoked at any time at the sole discretion of the rating organization.
−Removed: As of August 1, 2024, the financial strength ratings of our principal insurance subsidiaries were as follows :
+Added: Item 2 | Management’s Discussion and Analysis | Liquidity and Capital Resources
+Added: As of November 1, 2024, the financial strength ratings of our principal insurance subsidiaries were as follows :
Best Fitch Moody’s S&P
38 unchanged sentences
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.