What changed in this filing

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Item 8. Financial Statements and Supplementary Data

2026-02-24 compared with 2025-02-26 · 597 added, 550 removed, 3002 unchanged (28% of the section changed)

21 unchanged sentences

Share-Based Compensation

Other Related Party Transactions

Statutory Accounting and Regulatory Matters

72 unchanged sentences

Debt Securities, at fair value under fair value option 3,470 3,046

Debt Securities, trading, at fair value — 68

Equity securities, at fair value 172 197

80 unchanged sentences

Net income (loss) attributable to Jackson Financial Inc.

946 934 6,186

Dividends on preferred stock 44 44 35

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Change in equity of noncontrolling interests — — — — — — — ( 588 ) ( 588 )

Dividends on preferred stock — — — — — ( 35 ) ( 35 ) — ( 35 )

Dividends on common stock — — — — — ( 209 ) ( 209 ) — ( 209 )

Purchase of treasury stock — — — ( 306 ) — — ( 306 ) — ( 306 )

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

Share-based compensation — — ( 58 ) 150 — ( 55 ) 37 — 37

7 unchanged sentences

Share-based compensation — — 41 34 — ( 11 ) 64 — 64

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

Balances as of December 31, 2024 $ 533 $ 1 $ 6,046 $ ( 1,007 ) $ ( 3,522 ) $ 7,713 $ 9,764 $ 218 $ 9,982

25 unchanged sentences

Deferred income tax expense (benefit) ( 173 ) 294 ( 207 )

Share-based compensation expense 191 107 131

Share-based compensation 132 191 107

Accrued investment income ( 105 ) ( 17 ) 2

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Withdrawals ( 42,245 ) ( 39,372 ) ( 29,112 )

Net transfers to separate accounts 19,892 10,017 5,685

Net transfers from (to) separate accounts 20,761 19,892 10,017

Proceeds from (payments on) repurchase agreements and securities lending ( 516 ) 1,532 ( 1,025 )

Net proceeds from (payments on) Federal Home Loan Bank notes ( 700 ) 450 250

Proceeds from debt — — 750

Settlements related to deferred premium on derivatives ( 114 ) — —

Payments on debt ( 5 ) ( 5 ) ( 603 )

Debt issuance costs — — ( 7 )

Issuance of debt of consolidated investment entities 736 948 297

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Jackson Financial Inc.

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

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

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

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

public company.

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

Jackson Financial became an independent public company on September 13, 2021.

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

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

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

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

In addition to Jackson, Jackson Financial’s operating subsidiaries include:

• PPM America, Inc.

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

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

PPM also provides investment services to other institutional clients globally;

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

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

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

• Hickory Brooke Reinsurance Company ("Hickory Re"), a direct subsidiary of Brooke Re, was formed as a Michigan captive reinsurance company.

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

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• Registered investment adviser:

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

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

JNAM manages and oversees those sub-advisers.

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Business and Basis of Presentation

Hickory Brooke Reinsurance Company

During the fourth quarter of 2025, Jackson entered into a reinsurance agreement with Hickory Re, on a quota-share coinsurance basis on certain fixed annuities and fixed index annuities issued by Jackson, including the annuitization of these contracts, with all economics of the transaction effective as of December 1, 2025.

Additionally, under the agreement Hickory Re will reinsure the new sales of fixed annuities and fixed index annuities of Jackson.

Jackson and Hickory Re, a subsidiary of Brooke Re, are subsidiaries of Brooke Life and the reinsurance transaction eliminates upon consolidation at JFI.

For regulatory reporting purposes, Hickory Re measures the liabilities for assumed contracts using a modified U.S.

GAAP methodology which is intended to increase alignment between assets and liabilities in response to changes in economic factors.

Hickory Re has been established to serve as a capital-efficient way to accelerate further sales growth of Jackson’s fixed and fixed index annuity products as we grow our spread-based business.

In addition, on January 6, 2026, Jackson announced that it entered a long-term strategic partnership with TPG, Inc.

("TPG"), combining the strength of Jackson’s annuity product expertise and broad distribution network with TPG’s private credit platform.

The partnership aims to expand Jackson’s spread-based product sales.

See Note 25 – Subsequent Events of these Notes to Consolidated Financial Statements for further discussion on this transaction.

Basis of Presentation

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

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

These reclassifications, described below, had no impact on Net Income or our non-GAAP financial measure of Adjusted Operating Earnings.

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

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

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

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

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

Use of Estimates

4 unchanged sentences

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

• Assumptions as to future earnings levels being sufficient to realize deferred tax benefits;

• Estimates related to expectations of credit losses on certain financial assets and off-balance sheet exposures;

• Assumptions and estimates associated with the Company’s tax positions, including an estimate of the dividends received deduction, which impact the amount of recognized tax benefits recorded by the Company, and assumptions as to future earnings levels being sufficient to realize deferred tax benefits;

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

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Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other appropriate factors.

As facts and circumstances dictate, these estimates and assumptions may be adjusted.

As facts and circumstances evolve, these estimates and assumptions may be adjusted.

Since future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates.

Changes in estimates, including those resulting from continuing changes in the economic environment, will be reflected in the Consolidated Financial Statements in the periods the estimates are changed.

The effects of changes in estimates and assumptions, including those resulting from changing expectations with respect to the economic environment, will be reflected in the consolidated financial statements covering the periods in which the estimates are changed.

Summary of Significant Accounting Policies

The following table identifies our significant accounting policies presented in other Notes to Consolidated Financial Statements:

The following table identifies our significant accounting policies presented in these Notes to Consolidated Financial Statements:

Investments Note 4

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PPM receives an investment management fee for services as an asset manager for various entities.

Revenue for these services is measured based on the terms specified in a customer's contract and is recognized when PPM has satisfied a performance obligation.

Revenue for these services is measured based on the terms specified in a customer's contract and is recognized when PPM satisfies a performance obligation.

These investment management fees are recognized ratably over the period that assets are managed, and when the probability of significant revenue reversal is remote.

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These fees are recognized at the end of the specified period, once the fees are fixed, determinable, not subject to further performance metrics, and probability of significant revenue reversal is remote.

Changes in Accounting Principles – Adopted in Current Year

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

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

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

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

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

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

The practical expedient allowed by this standard was elected and applied by the Company.

The contracts modified met the criteria for the practical expedient and, therefore, the transition did not have a material impact on the Company’s Consolidated Financial Statements.

The Company has completed its transition from the London Interbank Offered Rate ("LIBOR").

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

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

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

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

Effective for the annual period ended December 31, 2024, the Company adopted this ASU retrospectively and recast previously reported segment information.

The required disclosures under this ASU are included in Note 3 - Segment Information .

Changes in Accounting Principles – Issued but Not Yet Adopted

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

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

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

New Accounting Pronouncements – Adopted

In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-09, “Improvements to Income Tax Disclosures”, which enhances annual income tax disclosures by requiring disclosure of disaggregated information about a reporting entity’s effective tax rate reconciliation as well as information on income taxes paid.

Effective for the annual period ended December 31, 2025, the Company adopted this ASU retrospectively and restated disclosures for prior periods.

The adoption did not have a material impact on its consolidated financial statements.

The required disclosures under this ASU are included in Note 15 – Income Taxes .

New Accounting Pronouncements – Issued but Not Yet Adopted

In November 2024, the FASB issued ASU 2024-03, “Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40),” which requires disaggregated disclosure of income statement expenses for public business entities.

The ASU requires footnote disclosure about specific types of expenses included in the expense captions presented on the face of the income statement and the total amount of selling expenses on an annual and interim basis.

The ASU requires footnote disclosure about specific types of expenses included in certain expense captions presented on the face of the income statement and the total amount of selling expenses on an annual and interim basis.

The entity is also required to disclose its definition of selling expenses in annual reporting periods.

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

In September 2025, the FASB issued ASU 2025-06, “Intangibles – Goodwill and Other – Internal-use Software (Subtopic 350-40):

Targeted Improvements to the Accounting for Internal-use Software.” Under the new standard, an entity will start capitalizing eligible software costs when management has authorized and committed to funding the software project and it is probable that the project will be completed and the software will be used to perform the function intended (referred to as the “probable-to-complete recognition threshold”).

The amendments in this ASU will be effective for annual reporting periods beginning after December 15, 2027, and interim reporting periods within those annual reporting periods.

Early adoption is permitted as of the beginning of an annual reporting period.

The amendments can be applied on a fully prospective basis, a modified basis for in-process projects, or a fully retrospective basis.

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

In December 2025, the FASB issued ASU 2025-08, “Financial Instruments – Credit Losses (Topic 326):

Purchased Loans,” which requires certain purchased seasoned loans acquired without credit deterioration be accounted for using the gross-up approach in Topic 326 that is currently applied to purchased with credit deterioration (“PCD”) financial assets.

Under the gross-up approach, the initial allowance for credit losses is established by increasing the amortized cost basis of the loan rather than recognizing a charge to credit loss expense.

The amendments in this ASU will be effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods within those annual reporting periods.

Early adoption is permitted in an interim or annual reporting period in which financial statements have not yet been issued or made available for issuance.

The amendments are to be applied prospectively.

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

Part II | Item 8.

Notes to Consolidated Financial Statements | 2.

Segment Information

Summary of Significant Accounting Policies

In December 2025, the FASB issued ASU 2025-11, “Interim Reporting (Topic 270):

Narrow Scope Improvements”, which provides additional guidance on what disclosures should be provided in interim reporting periods including disclosure of events since the end of the last annual reporting period that have a material impact on the entity.

The amendments in this ASU will be effective for interim reporting periods within annual reporting periods beginning after December 15, 2027.

Early adoption is permitted.

The amendments in this ASU can be applied either prospectively or retrospectively to any or all prior periods presented in the financial statements.

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

Segment Information

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The Company reports, in Corporate and Other, certain activities and items that are not included in these reportable segments, including the results of PPM Holdings, Inc., the holding company of PPM, which manages the majority of the Company’s general account investment portfolio.

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

The Company’s chief operating decision maker function is performed jointly by the Chief Executive Officer and the Chief Financial Officer.

For the Retail Annuities, Closed Life and Annuity Blocks, and Institutional Products segments, the chief operating decision maker uses segment pretax adjusted operating earnings to allocate resources for each segment, predominantly through the annual budget and forecasting process, and to assess the performance of each segment, predominantly by comparing the results of each segment with one another, with planned and forecasted results, and with comparative prior period results.

The reportable segments reflect how the Company’s chief operating decision maker (the "CODM") views and manages the business.

The Company’s CODM function is performed jointly by the Chief Executive Officer and the Chief Financial Officer.

For the Retail Annuities, Closed Life and Annuity Blocks, and Institutional Products segments, the CODM uses segment pretax adjusted operating earnings to allocate resources for each segment, predominantly through the annual budget and forecasting process, and to assess the performance of each segment, primarily by comparing the results of each segment with one another, with planned and forecasted results, and with comparative prior period results.

The following is a brief description of the Company’s reportable segments, plus its Corporate and Other segment.

Retail Annuities

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

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

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

2 unchanged sentences

A fixed index annuity is designed for investors who desire principal protection with the opportunity to participate in capped upside investment returns linked to a reference market index.

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

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

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

The financial results of the Company’s fixed annuities, including the fixed option on variable annuities, RILA and fixed index annuities, are largely dependent on the Company’s ability to earn a spread between earned investment rates on general account assets and the interest credited to contract holders.

The financial results of the Company’s fixed annuities, fixed index annuities, RILA and the fixed option on variable annuities, are largely dependent on the Company’s ability to earn a spread between earned investment rates on general account assets and the interest credited to contract holders.

Institutional Products

The Company’s Institutional Products segment consists of traditional Guaranteed Investment Contracts ("GICs"), funding agreements (including agreements issued in conjunction with the Company’s participation in the U.S.

Federal Home Loan Bank ("FHLB") program) and medium-term note funding agreements.

The Company’s Institutional Products segment consists of traditional guaranteed investment contracts ("GICs") and funding agreements.

The Company’s GIC products are marketed to defined contribution pension and profit-sharing retirement plans.

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

Funding agreements are marketed to institutional investors, including corporate cash accounts and securities lending funds, as well as money market funds.

Funding agreements are also issued in conjunction with the Company's participation in the U.S.

Federal Home Loan Bank ("FHLB") program.

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

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The Company’s Corporate and Other segment primarily consists of the operations of its investment management subsidiary, PPM, VIEs, and unallocated corporate income and expenses.

The Corporate and Other segment also includes certain eliminations and consolidation adjustments.

The Corporate and Other segment also includes intersegment eliminations and consolidation adjustments.

Segment Performance Measurement

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

Its primary measure is pretax adjusted operating earnings, which is defined as net income recorded in accordance with U.S.

Its primary measure is pretax adjusted operating earnings, which is defined as net income reported in accordance with U.S.

GAAP, excluding certain items that may be highly variable from period to period due to accounting treatment under U.S.

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

GAAP, or that are non-recurring in nature, as well as certain other revenues and expenses that are not considered drivers of underlying performance.

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

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We believe these exclusions provide investors a better picture of the drivers of our underlying performance.

Net Hedging Results:

Net Hedg ing Results:

Comprised of:

(i) fees attributed to guaranteed benefits;

(ii) net gains (losses) on hedging instruments which includes:

(ii) net gains (losses) on hedging instruments that includes:

(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;

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Amortization of DAC Associated with Non-operating Items at Date of Transition to LDTI:

Amortization of the balance of unamortized deferred acquisition costs, at January 1, 2021, the date of transition to current Long Duration Targeted Improvements ("LDTI") accounting guidance, associated with items excluded from pretax adjusted operating earnings prior to transition;

Amortization of the balance of unamortized deferred acquisition costs ("DAC"), at January 1, 2021, the date of transition to current Long Duration Targeted Improvements ("LDTI") accounting guidance, associated with items excluded from pretax adjusted operating earnings prior to transition.

Actuarial Assumption Updates and Model Enhancements:

The impact on the valuation of MRBs and embedded derivatives arising from our annual actuarial assumption updates and model enhancements review.

The impact on the valuation of market risk benefits and embedded derivatives arising from our annual actuarial assumption updates and model enhancements review.

Part II | Item 8.

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(i) realized investment gains and losses associated with the periodic sales or disposals of securities, excluding those held within our trading portfolio;

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

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

and (iii) foreign currency gain or loss on foreign denominated funding agreements and associated cross-currency swaps.

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

Comprised of:

(i) the change in fair value of funds withheld embedded derivatives;

and (ii) net investment income on funds withheld assets related to funds withheld reinsurance transactions.

(i) the change in fair value of funds withheld embedded derivatives, and (ii) net investment income on funds withheld assets related to funds withheld reinsurance transactions.

Comprised of:

(i) the impact of investments that are consolidated in our financial statements due to U.S.

GAAP accounting requirements, such as our investments in collateralized loan obligations ("CLOs"), but for which the consolidation effects are not consistent with our economic interest or exposure to those entities, and (ii) one-time or other non-recurring items.

Income taxes.

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

(ii) impacts from derivatives not included in Net Hedging Results or Net Realized Investment Gains or Losses (see 1.

above), excluding earned income from periodic settlements and changes in settlement accruals on cross-currency swaps;

and (iii) one-time or other non-recurring items.

Income T axes .

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

For the Year Ended December 31, 2025 Retail Annuities Institutional

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Operating Benefits and Expenses

Death, other policy benefits and change in policy

reserves, net of deferrals 67 — 573 — 640

Death, other policy benefits and change in policy reserves, net of deferrals 111 — 610 — 721

(Gain) loss from updating future policy benefits cash flow assumptions, net ( 20 ) — 64 — 44

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Operating Benefits and Expenses

Death, other policy benefits and change in policy

reserves, net of deferrals 43 — 641 — 684

Death, other policy benefits and change in policy reserves, net of deferrals 67 — 573 — 640

(Gain) loss from updating future policy benefits cash flow assumptions, net ( 54 ) — 104 — 50

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

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

There were no customers that, individually, generated revenues that exceeded 10% of total revenues attributable to the Company.

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

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Net income (loss) attributable to Jackson Financial Inc.

946 934 6,186

Dividends on preferred stock 44 44 35

10 unchanged sentences

The Company generates the majority of its general account deposits from interest-sensitive individual annuity contracts, life insurance products and institutional products on which it has committed to pay a declared rate of interest.

The Company's strategy of investing in fixed-income securities and loans seeks the matching of the asset yield with the amounts credited to the interest-sensitive liabilities and to earn a stable return on its investments.

The Company's strategy of investing in fixed-income securities and loans seeks to match the asset yield with the amounts credited to the interest-sensitive liabilities and to earn a stable return on its investments.

Debt Securities

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Other debt securities included from consolidation of certain VIEs are classified as trading securities and are carried at fair value with the changes in fair value included in net investment income.

The following table sets forth the composition of the fair value of debt securities at December 31, 2024 and 2023, classified by rating categories as assigned by nationally recognized statistical rating organization (a “rating agency”), the NAIC, or if not rated by such organizations, the Company’s investment advisors.

The following table sets forth the composition of the fair value of debt securities at December 31, 2025 and 2024, classified by rating categories as assigned by nationally recognized statistical rating organization (a “rating agency”), National Association of Insurance Commissioners (the “NAIC”) or, if not rated by such organizations, the Company’s investment advisors.

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

18 unchanged sentences

Unrealized losses on debt securities that were below investment grade or not rated were approximately 19 % and 19 % of the aggregate gross unrealized losses on available-for-sale debt securities at December 31, 2025 and 2024, respectively.

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

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

Utility 18 % 17 %

Financial Services 13 % 14 %

Largest unrealized loss related to a single corporate obligor $ 61 $ 50

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

As of December 31, 2025, the industries accounting for the largest percentage of unrealized losses included utility ( 18 % of corporate gross unrealized losses) and healthcare ( 13 %).

The largest unrealized loss related to a single corporate obligor was $ 55 million at December 31, 2025.

As of December 31, 2024, the industries accounting for the largest percentage of unrealized losses included utility ( 18 % of corporate gross unrealized losses) and financial services ( 13 %).

The largest unrealized loss related to a single corporate obligor was $ 61 million at December 31, 2024.

Part II | Item 8.

65 unchanged sentences

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

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

• Alt-A loan-backed securities are collateralized by mortgage loans made to borrowers who lack credit documentation or necessary requirements to obtain prime borrower rates.

• Subprime loan-backed securities are collateralized by mortgage loans made to borrowers that have a FICO score of 660 or lower.

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

• Alt-A loan-backed securities that are collateralized by mortgage loans made to borrowers who lack credit documentation or necessary requirements to obtain prime borrower rates;

• Subprime loan-backed securities that are collateralized by mortgage loans made to borrowers that have a FICO score of 660 or lower.

Unrealized Losses on Debt Securities

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

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

If neither criterion is met, the securities are further evaluated to determine if the cause of the decline in fair value resulted from credit losses or other factors, such as estimates about issuer operations and future earnings potential.

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

The Company’s reviews of net present value and fair value involve several criteria including economic conditions, credit loss experience, other issuer-specific developments and estimated future cash flows.

These assessments are based on the best available information at the time.

Factors such as market liquidity, the widening of bid/ask spreads and a change in the cash flow assumptions can contribute to future price volatility.

If actual experience differs negatively from the assumptions and other considerations used in the Consolidated Financial Statements, unrealized losses currently reported in accumulated other comprehensive income (loss) may be recognized in the consolidated income statements in future periods.

The Company currently has no intent to sell securities with unrealized losses considered to be temporary until they mature or recover in value and believes that it has the ability to do so.

However, if the specific facts and circumstances surrounding an individual security, or the outlook for its industry sector change, the Company may sell the security prior to its maturity or recovery and realize a loss.

Part II | Item 8.

Notes to Consolidated Financial Statements | 4.

When all, or a portion, of a security is deemed uncollectible, the uncollectible portion is written off with an adjustment to amortized cost and a corresponding reduction to the allowance for credit losses.

Accrued interest receivables are presented separate from the amortized cost basis of debt securities.

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

Accrued interest of $ 5 million and $ 1 million was written off during the years ended December 31, 2025 and 2024, respectively.

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

40 unchanged sentences

Debt securities in an unrealized loss position as of December 31, 2025 did not require an impairment recognized in earnings as (i) the Company did not intend to sell these debt securities, (ii) it is not more likely than not that the Company will be required to sell these securities before recovery of their amortized cost basis, and (iii) the difference in the fair value compared to the amortized cost was due to factors other than credit loss.

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

As of December 31, 2025, unrealized losses associated with debt securities are primarily due to widening credit spreads or rising risk-free rates since purchase.

As described below, the Company performed analyses of the financial performance of the underlying issues in an unrealized loss position and believes that recovery of the entire amortized cost of each impaired security is expected.

Evaluation of Available-for-Sale Debt Securities for Credit Loss

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

The credit loss evaluation for a security may consider the following:

The credit loss evaluation for a debt security may consider one or more of the following:

• the extent to which the fair value is below amortized cost;

16 unchanged sentences

Any remaining unrealized loss after recording the allowance for credit loss is the non-credit amount and is recorded to other comprehensive income.

Part II | Item 8.

Notes to Consolidated Financial Statements | 4.

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

These assessments are based on the best available information at the time.

Factors such as market liquidity, the widening of bid/ask spreads and a change in the cash flow assumptions can contribute to future price volatility.

The Company currently has no intent to sell securities with unrealized losses considered to be temporary until they mature or recover in value and believes that it has the ability to do so.

The allowance for credit loss for specific debt securities may be increased or reversed in subsequent periods due to changes in the assessment of the present value of cash flows that are expected to be collected.

Any changes to the allowance for credit loss are recorded as a provision for (or reversal of) credit loss expense in net gains (losses) on derivatives and investments.

When all, or a portion, of a security is deemed uncollectible, the uncollectible portion is written-off with an adjustment to amortized cost and a corresponding reduction to the allowance for credit losses.

Accrued interest receivables are presented separate from the amortized cost basis of debt securities.

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

Accrued interest of $ 1 million and $ 1 million was written off during the years ended December 31, 2024 and 2023, respectively.

Part II | Item 8.

Notes to Consolidated Financial Statements | 4.

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

13 unchanged sentences

$ — $ — $ — $ — $ 4 $ — $ 7 $ 11

Part II | Item 8.

Notes to Consolidated Financial Statements | 4.

December 31, 2024 US

14 unchanged sentences

(2) Accrued interest receivable on debt securities totaled $ 516 million and $ 435 million as of December 31, 2025 and 2024, respectively, and was excluded from the determination of credit losses for the years ended December 31, 2025 and 2024.

Part II | Item 8.

Notes to Consolidated Financial Statements | 4.

Net Investment Income

22 unchanged sentences

Unrealized gains (losses) included in investment income that were recognized on equity securities held were $ 1 million, $ 4 million and $( 20 ) million, for the years ended December 31, 2025, 2024 and 2023, respectively.

Part II | Item 8.

Notes to Consolidated Financial Statements | 4.

Net Gains (Losses) on Derivatives and Investments

8 unchanged sentences

Credit loss income (expense) on mortgage loans ( 21 ) 16 ( 104 )

( 71 ) 87 ( 46 )

Net gains (losses) excluding derivatives and funds withheld assets ( 116 ) ( 11 ) ( 554 )

4 unchanged sentences

(1) Includes the foreign currency gain or loss related to foreign denominated trust instruments supporting funding agreements.

Part II | Item 8.

Notes to Consolidated Financial Statements | 4.

Net gains (losses) on funds withheld reinsurance treaties represents income (loss) from the sale of investments held in segregated funds withheld accounts in support of reinsurance agreements for which Jackson retains legal ownership of the underlying investments.

These gains (losses) are increased or decreased by changes in the embedded derivative liability related to the Athene Life Re Ltd.

("Athene") funds withheld coinsurance agreement and also include (i) changes in the related funds withheld payable, as all economic performance of the investments held in the segregated accounts inure to the benefit of the reinsurers under the respective reinsurance agreements with each reinsurer, and (ii) amortization of the difference between book value and fair value of the investments as of the effective date of the reinsurance agreements with each reinsurer.

These gains (losses) are increased or decreased by:

• changes in the embedded derivative liability related to the Athene Life Re Ltd.

("Athene") funds withheld coinsurance agreement (the “Athene Reinsurance Transaction”),

• changes in the related funds withheld payable, as all economic performance of the investments held in the segregated accounts inure to the benefit of the reinsurers under the respective reinsurance agreements, and

• amortization of the difference between book value and fair value of the investments as of the effective date of the reinsurance agreements.

The aggregate fair value of securities sold at a loss for the years ended December 31, 2025, 2024 and 2023 was $ 1,656 million, $ 2,921 million and $ 5,529 million, which was approximately 95 %, 94 % and 97 % of book value, respectively.

2 unchanged sentences

The Company’s involvement with VIEs is primarily to invest in assets that gain exposure to a broadly diversified portfolio of asset classes.

A VIE is an entity that does not have sufficient equity to finance the activities of the entity without additional subordinated financial support or where equity investors lack certain characteristics of a controlling financial interest.

A VIE is an entity that does not have sufficient equity to finance its activities without additional subordinated financial support or where equity investors lack certain characteristics of a controlling financial interest.

The Company performs ongoing qualitative assessments of variable interests in VIEs to determine whether it has a controlling financial interest and would therefore be considered the primary beneficiary of the VIE.

3 unchanged sentences

Creditors of the consolidated VIEs do not have recourse to the general credit of the Company:

Part II | Item 8.

Notes to Consolidated Financial Statements | 4.

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

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

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

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

Private Equity Fund IX was created in 2024 but is not expected to be funded by the Company until 2025.

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

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

Those entities were deconsolidated as of December 31, 2023.

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

• Private Equity Funds VII – IX and Strategic Opportunity Fund I are limited partnership structures that invest the ownership capital in portfolios of various other limited partnership structures.

Private Equity Fund IX was funded in August 2025 and Strategic Opportunity Fund I was funded in June 2025.

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

These mutual funds ceased operations during the year ended December 31, 2024.

Part II | Item 8.

Notes to Consolidated Financial Statements | 4.

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

Debt securities, at fair value under fair value option $ 2,698 $ 2,429

Debt securities, trading — 68

Equity securities 6 6

6 unchanged sentences

Total other liabilities 2,836 2,622

Securities lending payable — 2

Total liabilities $ 2,836 $ 2,622

Noncontrolling interests $ 389 $ 218

Part II | Item 8.

Notes to Consolidated Financial Statements | 4.

Unconsolidated VIEs

2 unchanged sentences

• The carrying amounts of the Company’s investments in certain LPs and LLCs are recognized in other invested assets on the Consolidated Balance Sheets.

Unfunded capital commitments for these investments are detailed in Note 16 of the Notes to Consolidated Financial Statements.

The Company’s exposure to loss was limited to $ 2,637 million and $ 2,576 million as of December 31, 2024 and 2023, respectively, representing the aggregate capital invested and unfunded capital commitments related to the LPs/LLCs at those dates.

Unfunded capital commitments for these investments are detailed in Note 16 of these Notes to Consolidated Financial Statements.

The Company’s exposure to loss was limited to $ 2,709 million and $ 2,637 million as of December 31, 2025 and 2024, respectively, representing the aggregate capital invested and unfunded capital commitments related to the LPs and LLCs at those dates.

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

9 unchanged sentences

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

Part II | Item 8.

Notes to Consolidated Financial Statements | 4.

Commercial and Residential Mortgage Loans

12 unchanged sentences

At December 31, 2025, commercial mortgage loans were collateralized by properties located in 34 states, the District of Columbia, and Europe, while residential mortgage loans were collateralized by properties located in 49 states, the District of Columbia, Mexico, and Europe.

Part II | Item 8.

Notes to Consolidated Financial Statements | 4.

Evaluation for Credit Losses on Mortgage Loans

13 unchanged sentences

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

Part II | Item 8.

Notes to Consolidated Financial Statements | 4.

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

2 unchanged sentences

Charge offs, net of recoveries — ( 5 ) ( 9 ) — — — — ( 14 )

Reductions for mortgages disposed ( 1 ) — — ( 1 ) — — — ( 2 )

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

5 unchanged sentences

Charge offs, net of recoveries ( 3 ) — — — — — — ( 3 )

Reductions for mortgages disposed — — — — — — — —

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

7 unchanged sentences

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

Part II | Item 8.

Notes to Consolidated Financial Statements | 4.

The following table provides information about our residential mortgage loans in process of foreclosure (in millions):

5 unchanged sentences

(1) At December 31, 2025 and 2024, includes $ 4 million and $ 2 million, respectively, of loans in process of foreclosure, all of which are loans supported with insurance or other guarantees provided by various governmental programs.

Part II | Item 8.

Notes to Consolidated Financial Statements | 4.

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

94 unchanged sentences

Commercial mortgage loans $ 24 0.27 %

As of December 31, 2024, the above modified loans had no unfunded commitment.

As of December 31, 2025, the above modified loans had no unfunded commitments.

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

3 unchanged sentences

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

December 31, 2023

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

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

6 unchanged sentences

Commercial mortgage loans $ 24 $ — $ —

As of December 31, 2025 and 2024, stressed mortgage loans for which the Company is dependent, or expects to be dependent, on the underlying property to satisfy repayment were $ 34 million and $ 27 million, respectively.

Part II | Item 8.

Notes to Consolidated Financial Statements | 4.

As of December 31, 2024 and 2023, stressed mortgage loans for which the Company is dependent, or expects to be dependent, on the underlying property to satisfy repayment were $ 27 million and $ 19 million, respectively.

Equity Securities

5 unchanged sentences

Other Invested Assets

Other invested assets primarily include investments in Federal Home Loan Bank of Indianapolis ("FHLBI") capital stock, limited partnerships (“LPs”), and real estate.

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

Other invested assets primarily include investments in:

• Federal Home Loan Bank of Indianapolis ("FHLBI") capital stock, which is carried at cost and adjusted for any impairment.

At December 31, 2025 and 2024, FHLB capital stock had a carrying value of $ 119 million and $ 127 million, respectively;

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

At December 31, 2024 and 2023, real estate totaling $ 232 million and $ 226 million, respectively, included foreclosed properties with a book value of $ 14 million and $ 6 million, respectively.

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

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

At December 31, 2025 and 2024, investments in LPs had carrying values of $ 2.8 billion and $ 2.5 billion, respectively;

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

At December 31, 2025 and 2024, real estate totaling $ 230 million and $ 232 million, respectively, included foreclosed properties with a book value of $ 20 million and $ 14 million, respectively.

Securities Lending

10 unchanged sentences

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

At December 31, 2024 and 2023, the outstanding repurchase agreement balance was $ 1.5 billion and nil , respectively, having maturities within 30 days, and was included within repurchase agreements and securities lending payable in the Consolidated Balance Sheets.

At December 31, 2025 and 2024, the outstanding repurchase agreement balance was $ 1.0 billion and $ 1.5 billion, respectively, having maturities within 30 days, and was included within repurchase agreements and securities lending payable in the Consolidated Balance Sheets.

These repurchase agreements were collateralized with U.S.

Treasury securities and corporate securities of $ 1.5 billion and nil , respectively, at December 31, 2024 and 2023.

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

Interest expense totaled $ 69 million, $ 45 million and $ 8 million for the years ended December 31, 2024, 2023 and 2022, respectively, and is included within net investment income.

Treasury securities and corporate securities of $ 1.0 billion and $ 1.5 billion, respectively, at December 31, 2025 and 2024.

Part II | Item 8.

Notes to Consolidated Financial Statements | 4.

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

Interest expense totaled $ 45 million, $ 69 million and $ 45 million for the years ended December 31, 2025, 2024 and 2023, respectively, and is included within net investment income.

Collateral Upgrade Transactions

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.

During the first quarter of 2024, Jackson executed certain paired repurchase and reverse repurchase transactions totaling $ 1.5 billion pursuant to master repurchase agreements with participating bank counterparties.

Under these transactions, the Company lends securities ( e.g.

, corporate debt securities) to bank counterparties in exchange for U.S.

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

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

The paired repurchase and reverse repurchase transactions are settled on a net basis.

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

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

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

These transactions are evergreen and require at least 150-days' notice prior to termination.

At December 31, 2025 and 2024, the fair value of the U.S.

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

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

Subsequently, the Company provided these U.S.

1 unchanged sentence

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

Gross interest income of $ 71 million, nil , and nil and gross interest expense of $ 79 million, nil , and nil for the years ended December 31, 2024, 2023 and 2022, respectively, are included within net investment income.

Gross interest income of $ 66 million, $ 71 million, and nil and gross interest expense of $ 75 million, $ 79 million, and nil for the years ended December 31, 2025, 2024 and 2023, respectively, are included within net investment income.

Derivative Instruments

5 unchanged sentences

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

During the third quarter of 2025, the Company began utilizing derivative instruments to economically hedge the equity market exposure related to the Company’s non-qualified voluntary deferred compensation plans.

These derivative instruments are not designated as accounting hedges and are carried at fair value with gains or losses reported as a component of operating costs and other expenses, net of deferrals in the Consolidated Income Statements.

See Note 20 - Benefit Plans of the Notes to Consolidated Financial Statements for further details on our non-qualified deferred compensation plans.

With respect to the Company’s interest rate swaps, total return swaps, and cross-currency swaps, the Company records the income related to periodic interest payment settlements within net gains (losses) on derivatives and investments.

3 unchanged sentences

There were no charges due to nonperformance by derivative counterparties in 2025, 2024 or 2023.

Part II | Item 8.

Notes to Consolidated Financial Statements | 5.

Derivative Instruments

Embedded Derivatives—Product Liabilities

3 unchanged sentences

The results from changes in value of these embedded derivatives are reported in net gains (losses) on derivatives and investments in the Consolidated Income Statements.

Part II | Item 8.

Notes to Consolidated Financial Statements | 5.

Derivative Instruments

See Note 10 - Other Contract Holder Funds of the Notes to Consolidated Financial Statements for additional information on the accounting policies for these embedded derivatives within fixed index and registered index-linked annuities.

See Note 10 - Other Contract Holder Funds of these Notes to Consolidated Financial Statements for additional information on the accounting policies for these embedded derivatives within fixed index and registered index-linked annuities.

Embedded Derivatives—Funds Withheld Reinsurance Agreements

6 unchanged sentences

The Athene Embedded Derivative Liability is included in funds withheld payable under reinsurance treaties in the Consolidated Balance Sheets.

See “Athene Reinsurance” in Note 8 - Reinsurance of the Notes to Consolidated Financial Statements for additional information on the Athene Reinsurance Transaction.

See “Athene Reinsurance” in Note 8 - Reinsurance of these Notes to Consolidated Financial Statements for additional information on the Athene Reinsurance Transaction.

Part II | Item 8.

Notes to Consolidated Financial Statements | 5.

Derivative Instruments

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

7 unchanged sentences

Equity index put options 16,500 114 — 114

Interest rate swaps 5,978 3 177 ( 174 )

Put-swaptions — — — —

Interest rate swaps - cleared (2)

Interest rate futures (2)

33 unchanged sentences

Interest rate swaps 5,978 3 177 ( 174 )

Put-swaptions 23,500 153 905 ( 752 )

Interest rate futures (2)

Total return swaps 2,065 39 — 39

Bond forwards 609 — 21 ( 21 )

Total freestanding derivatives 74,073 240 349 ( 109 )

24 unchanged sentences

2025 2024 2023

Derivatives excluding funds withheld under reinsurance treaties

Derivatives excluding funds withheld under reinsurance treaties and non-qualified voluntary deferred compensation plan

Cross-currency swaps $ 32 $ ( 66 ) $ ( 4 )

17 unchanged sentences

Total net gains (losses) on derivative instruments including derivative instruments related to funds withheld under reinsurance treaties $ ( 3,855 ) $ ( 6,922 ) $ ( 6,037 )

Derivatives related to non-qualified voluntary deferred compensation plan

Equity index futures $ 14 $ — $ —

Total return swaps 7 — —

Total operating costs and other expenses related to non-qualified voluntary deferred compensation plan $ 21 $ — $ —

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

1 unchanged sentence

At December 31, 2025 and 2024, the fair value of the Company’s net non-cleared, over-the-counter derivative liabilities by counterparty were $ 237 million and $ 267 million, respectively, and provided collateral was $ 295 million and $ 302 million, respectively, related to these agreements.

If all of the downgrade provisions had been triggered at December 31, 2024 and 2023, in aggregate, the Company would have had to disburse $ 49 million and $ 910 million, respectively, and would have been allowed to claim $ 35 million and nil , respectively.

If all of the downgrade provisions had been triggered at December 31, 2025 and 2024, in aggregate, the Company would have had to disburse nil and $ 49 million, respectively, and would have been allowed to claim $ 79 million and $ 35 million, respectively.

Part II | Item 8.

Notes to Consolidated Financial Statements | 5.

Derivative Instruments

The Company pledged collateral of $ 1,403 million and $ 1,780 million as of December 31, 2025 and 2024, respectively, for initial margin related to uncleared margin for over-the-counter derivatives and exchange-traded futures.

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

The Company purchases equity options for which option premium payments are deferred (deferred premium options).

The deferred premiums, along with interest incurred thereon, are payable at contract termination.

During 2025, the Company deferred option premiums totaling $ 389 million.

The purchase of these options is a non-cash transaction.

Upon maturity, payment of the deferred premium is reported as a cash flow from financing activities.

Offsetting Assets and Liabilities

2 unchanged sentences

The Company recognizes amounts subject to master netting arrangements on a gross basis within the Consolidated Balance Sheets.

Part II | Item 8.

Notes to Consolidated Financial Statements | 5.

Derivative Instruments

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

14 unchanged sentences

Freestanding derivative liabilities $ 257 $ — $ 257 $ 20 $ 12 $ 221 $ 4

Securities loaned 14 — 14 — 14 — —

Derivative deferred premium payable 277 — 277 277 — — —

Securities lending 35 — 35 — 35 — —

Repurchase agreements 1,001 — 1,001 — — 1,001 —

18 unchanged sentences

Freestanding derivative liabilities $ 361 $ — $ 361 $ 95 $ — $ 215 $ 51

Securities loaned 19 — 19 — 19 — —

Securities lending 14 — 14 — 14 — —

Repurchase agreements 1,540 — 1,540 — — 1,540 —

Repurchase agreements - collateral upgrade 1,476 ( 1,476 ) — — — — —

Total financial liabilities $ 3,391 $ ( 1,476 ) $ 1,915 $ 95 $ 14 $ 1,755 $ 51

1 unchanged sentence

(2) Excludes initial margin amounts for exchange-traded derivatives.

In the above tables, the amounts of assets or liabilities presented in the Company’s Consolidated Balance Sheets are offset first by financial instruments that have the right of offset under master netting or similar arrangements with any remaining amount reduced by the amount of cash and securities collateral.

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

The above tables exclude net embedded derivative liabilities of $ 3,942 million and $ 2,090 million as of December 31, 2024 and 2023, respectively, as these derivatives are not subject to master netting arrangements.

The above tables also exclude the funds withheld embedded derivative asset (liability) of $ 2,314 million and $ 2,468 million at December 31, 2024 and 2023, respectively.

Part II | Item 8.

Notes to Consolidated Financial Statements | 5.

Fair Value Measurements

Derivative Instruments

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

The above tables exclude:

• net embedded derivative liabilities of $ 6,906 million and $ 3,942 million as of December 31, 2025 and 2024, respectively, as these derivatives are not subject to master netting arrangements;

• the funds withheld embedded derivative asset (liability) of $ 1,752 million and $ 2,314 million at December 31, 2025 and 2024, respectively.

Fair Value Measurements

49 unchanged sentences

Market risk benefit liabilities 3,754 3,754 3,774 3,774

Reserves for guaranteed investment contracts (3)

556 546 700 674

Trust instruments supported by funding agreements (3)

5,892 5,825 5,756 5,601

FHLB funding agreements (3)

Guaranteed investment contracts and funding agreements (3)

11,021 11,077 8,384 8,271

8 unchanged sentences

FHLB advances (5)

700 700 250 250

Separate account liabilities 236,496 236,496 229,143 229,143

(1) Includes items carried at fair value under the fair value option and trading securities included as a component of debt securities.

(2) Annuity reserves represent only the components of other contract holder funds and reserves for future policy benefits and claims payable that are considered to be financial instruments.

(2) Annuity reserves exclude contracts classified as insurance contracts.

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

7 unchanged sentences

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

• Independent pricing services:

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

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

Part II | Item 8.

1 unchanged sentence

Fair Value Measurements

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

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

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

• Broker-dealer quotes:

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

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

The majority of these quotes are non-binding.

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

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

Such estimates are derived based on the characteristics of the underlying structure and prepayment assumptions believed to be relevant for the underlying collateral.

Actual prepayment experience may vary from these estimates.

Internally derived estimates may be used to develop a fair value for securities for which the Company is unable to obtain either a reliable price from an independent pricing service or a suitable broker-dealer quote.

• Internally derived estimates:

These fair value estimates may incorporate Level 2 and Level 3 inputs, as defined below, and are generally derived using expected future cash flows, discounted at market interest rates available from market sources based on the credit quality and duration of the instrument.

1 unchanged sentence

These prices are indicative of an exit price, but the assumptions used to establish the fair value may not be observable or corroborated by market observable information and, therefore, represent Level 3 inputs.

For those securities that were internally valued at December 31, 2025 and 2024, the pricing model used by the Company utilizes current spread levels of similarly rated securities to determine the market discount rate for the security.

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

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

The Company performs an analysis on the prices and credit spreads received from third parties to ensure that the prices represent a reasonable estimate of the fair value.

3 unchanged sentences

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

For those securities that were internally valued at December 31, 2024 and 2023, the pricing model used by the Company utilizes current spread levels of similarly rated securities to determine the market discount rate for the security.

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

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

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

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

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

Such estimates are derived based on the characteristics of the underlying structure and prepayment assumptions believed to be relevant for the underlying collateral.

Actual prepayment experience may vary from these estimates.

Limited Partnerships

1 unchanged sentence

No adjustments to these amounts were deemed necessary at December 31, 2025 and 2024.

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

Part II | Item 8.

Notes to Consolidated Financial Statements | 6.

Fair Value Measurements

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

The Company’s limited partnership interests are not redeemable, and distributions received are generally the result of liquidation of the underlying assets of the partnerships.

2 unchanged sentences

Limited partnership interests expected to be sold are classified as Level 2 in the fair value hierarchy.

Part II | Item 8.

Notes to Consolidated Financial Statements | 6.

Fair Value Measurements

In cases when a limited partnership’s financial statements are unavailable and a NAV equivalent is not available or practical, the fair value may be based on an internally developed model or provided by the general partner as determined using private transactions, information obtained from the primary co-investor or underlying company, or financial metrics provided by the lead sponsor.

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

Policy loans are funds provided to policyholders in return for a claim on the policies' values.

They are repaid upon repayment, death or surrender, and there is only one market price at which the loans could be settled – the then current carrying value.

Policy loans are funds provided to policyholders in return for a claim on their policies' values.

They are repaid upon repayment, death or surrender, and there is only one market price at which the loans can be settled – the then current carrying value.

The loans are limited to, and fully collateralized by, the cash surrender value of the underlying policy.

2 unchanged sentences

Due to the collateralized nature of policy loans and unpredictable timing of payments, the Company believes the carrying value of policy loans approximates fair value.

The reinsurance related component of policy loans at fair value under the fair value option have been classified as Level 3 within the fair value hierarchy.

The reinsurance related component of policy loans at fair value under the fair value option has been classified as Level 3 within the fair value hierarchy.

Freestanding Derivative Instruments

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• Level 1 include futures, which are traded on active exchanges.

• Level 2 include interest rate swaps, cross currency swaps, forwards, credit default swaps, total return swaps, bond forwards, put-swaptions and certain equity index call and put options.

• Level 2 include interest rate swaps, cross currency swaps, credit default swaps, total return swaps, bond forwards, put-swaptions and certain equity index call and put options.

These derivative valuations are determined by third-party pricing services using pricing models with inputs that are observable in the market or can be derived principally from, or corroborated by, observable market data.

5 unchanged sentences

Funds Withheld Payable Under Reinsurance Treaties

The funds withheld payable under reinsurance treaties includes both the funds withheld payable that are held at fair value under the fair value option and the funds withheld embedded derivative.

The funds withheld payable under reinsurance treaties includes:

• The funds withheld payable that is held at fair value under the fair value option:

the fair value is equal to the fair value of the assets held as collateral, which primarily consists of policy loans using industry standard valuation techniques.

• The funds withheld embedded derivative:

the fair value is determined based upon a total return swap technique referencing the fair value of the investments held under the reinsurance contract and requires certain significant unobservable inputs.

Both are considered Level 3 in the fair value hierarchy.

• The fair value of the funds withheld payable that is held at fair value under the fair value option is equal to the fair value of the assets held as collateral, which primarily consists of policy loans using industry standard valuation techniques.

Part II | Item 8.

1 unchanged sentence

Fair Value Measurements

• The funds withheld embedded derivative is determined based upon a total return swap technique referencing the fair value of the investments held under the reinsurance contract and requires certain significant unobservable inputs.

Separate Account Assets

1 unchanged sentence

Market Risk Benefits

Variable Annuities

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

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

Our market risk benefits ("MRB") assets and MRB liabilities are reported separately on our Consolidated Balance Sheets.

Increases to an asset or decreases to a liability are described as favorable changes to fair value.

1 unchanged sentence

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

Variable Annuities

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

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

13 unchanged sentences

Estimating these cash flows requires numerous estimates and subjective judgments related to capital market inputs, as well as actuarially determined assumptions related to expectations concerning policyholder behavior.

Capital market inputs include expected market rates of return, market volatility, correlations of market index returns to fund returns, and discount rates, which includes an adjustment for non-performance risk.

Capital market inputs include expected market rates of return, market volatility, correlations of market index returns to fund returns, and discount rates, which include an adjustment for non-performance risk.

The more significant actuarial assumptions include benefit utilization by policyholders, lapse, mortality, and withdrawal rates.

8 unchanged sentences

Estimates of future policyholder behavior are subjective and are based primarily on the Company’s experience.

As markets change, mature and evolve and actual policyholder behavior emerges, management continually evaluates the appropriateness of its assumptions for the fair value model.

As markets change, mature and evolve and actual policyholder behavior emerges, management evaluates the appropriateness of its assumptions for the fair value model.

The use of the models and assumptions described above requires a significant amount of judgment.

1 unchanged sentence

However, the ultimate settlement amount of the asset or liability, which is currently unknown, could likely be significantly different than this fair value.

Fixed Index Annuities

The longevity riders issued on fixed index annuities are classified as MRBs and measured at fair value.

Similar to the variable annuity guaranteed benefit features, these contracts have explicit fees and are measured using the attributed fee method.

The Company attributes a percentage of total projected future fees expected to be assessed against the policyholder to offset the projected future claims over the lifetime of the contract.

If the fees attributed are insufficient to offset the claims at issue, the shortfall is borrowed from the host contract rather than recognizing a loss at inception.

RILA guaranteed benefit features are classified as MRBs and measured at fair value.

The fair value measurement represents the present value of future claims payable by the MRB feature.

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

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

Fixed Index Annuities

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

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

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

Fixed Index Annuities and RILA

Our FIA and RILA contracts may be issued with features that guarantee benefits that are payable upon death (GMDB) or upon depletion of funds (GMWB).

These features are classified as MRBs and measured at fair value.

Where the guaranteed benefit features have explicit fees, the fair value of the MRB is measured as the difference between the present value of projected future guaranteed benefits and the present value of projected attributed fees (the attributed fee method).

At inception of the contract, the Company attributes a percentage of total projected future fees expected to be assessed against the policyholder to offset the projected future guaranteed benefits over the lifetime of the contract.

Where the projected attributed fees are sufficient to offset the projected guaranteed benefits at issue, the MRB has an initial fair value of zero resulting in no gain or loss on issuance of the contract.

If the projected attributed fees are insufficient to offset the projected guaranteed benefits at issue, an MRB liability is recognized and the value of the MRB is deducted from the host contract liability resulting in no gain or loss on issuance of the contract.

If the guaranteed benefits do not have explicit fees, the fair value of the MRB is measured as the present value of projected future guaranteed benefits.

At inception, the initial value of the MRB is deducted from the host contract liability resulting in no gain or loss on issuance of the contract.

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

Indexed-Linked Crediting Derivative Feature in Fixed Index Annuities and RILA

The fair value of the index-linked crediting derivative feature embedded in fixed index annuities and RILA, included in Annuity Reserves in the above tables, is calculated using the closed form Black-Scholes Option Pricing model or Monte Carlo simulations, as appropriate for the type of option.

The calculation incorporates such factors as the volatility of returns, the level of interest rates and the time remaining until the option expires.

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

Part II | Item 8.

Notes to Consolidated Financial Statements | 6.

Fair Value Measurements

Notes Issued by Consolidated VIEs

2 unchanged sentences

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

Part II | Item 8.

Notes to Consolidated Financial Statements | 6.

Fair Value Measurements

Fair Value Option

The Company elected the fair value option for debt securities related to certain consolidated investments totaling $ 2,429 million and $ 2,037 million at December 31, 2024 and 2023, respectively.

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

During the third quarter of 2024, the Company began purchasing certain debt securities for purposes of mitigating components of the Company’s exposure to changes in the value of certain market risk benefits.

The Company elected the fair value option for:

• Debt securities reflected on the Company’s Consolidated Balance Sheets as debt securities related to:

◦ certain consolidated investments totaling $ 2,698 million and $ 2,429 million at December 31, 2025 and 2024, respectively.

◦ certain debt securities the Company began purchasing during the third quarter of 2024, for purposes of mitigating components of exposure to changes in the value of certain market risk benefits.

The Company elected the fair value option on these debt securities, with changes in fair value reflected in net income, to align with the corresponding changes in the value of the market risk benefits recognized through net income.

These debt securities totaling $ 501 million and nil at December 31, 2024 and 2023, respectively, are presented as debt securities, at fair value under the fair value option in the Consolidated Balance Sheets.

The Company has elected the fair value option for certain funds withheld assets, which are held as collateral for reinsurance, totaling $ 4,054 million and $ 4,054 million at December 31, 2024 and 2023, respectively, as discussed above, and includes mortgage loans as discussed below.

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

These debt securities totaled $ 766 million and $ 501 million at December 31, 2025 and 2024, respectively.

• Certain funds withheld assets, which are held as collateral for reinsurance, totaling $ 3,867 million and $ 4,054 million at December 31, 2025 and 2024, respectively, as discussed above, and include mortgage loans as discussed below.

• Certain mortgage loans held under the funds withheld reinsurance agreement with Athene.

The fair value option was elected for these mortgage loans, purchased or funded after December 31, 2021, to mitigate inconsistency in earnings that would otherwise result between these mortgage loan assets and the funds withheld liability, including the associated embedded derivative, and are valued using third-party pricing services.

4 unchanged sentences

As of December 31, 2025, no loans in good standing for which the fair value option was elected were in non-accrual status, and no loans were more than 90 days past due and still accruing interest.

The Company elected the fair value option for notes issued by consolidated VIEs totaling $ 2,343 million and $ 1,988 million at December 31, 2024 and 2023, respectively.

• Notes issued by consolidated VIEs totaling $ 2,578 million and $ 2,343 million at December 31, 2025 and 2024, respectively.

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

32 unchanged sentences

$ 15,466 $ — $ 9,741 $ 5,725

(1) Excludes $ 2,310 million of limited partnership investments measured at NAV.

(1) Excludes $ 2,586 million of limited partnership investments measured at NAV equivalent.

(2) Includes the embedded derivative liabilities of $ 6,043 million related to RILA and $ 863 million of fixed index annuities, both included in other contract holder funds on the Consolidated Balance Sheets.

31 unchanged sentences

$ 11,773 $ — $ 6,646 $ 5,127

(1) Excludes $ 1,997 million of limited partnership investments measured at NAV.

(1) Excludes $ 2,310 million of limited partnership investments measured at NAV equivalent.

(2) Includes the embedded derivative liabilities of $ 3,065 million related to RILA and $ 877 million of fixed index annuities, both included in other contract holder funds on the Consolidated Balance Sheets.

9 unchanged sentences

Debt securities:

Public utilities $ 44 $ 44 $ —

$ 346 $ 31 $ 315

Other asset-backed securities

14 unchanged sentences

Debt securities:

Other government securities $ 150 $ — $ 150

Public utilities $ 44 $ 44 $ —

30 unchanged sentences

Long-term Equity Volatility (6)

17.50 % - 23.50 %

Market risk benefit assets $ 7,867 Discounted cash flow Mortality (1)

8 unchanged sentences

Long-term Equity Volatility (6)

17.50 % - 23.50 %

Market risk benefit liabilities $ 3,754 Discounted cash flow Mortality (1)

8 unchanged sentences

Long-term Equity Volatility (6)

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

17.50 % - 23.50 %

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

The range displayed reflects ages from the minimum issue age for the benefit through age 95, which corresponds to the typical maturity age.

63 unchanged sentences

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

• Investments:

At December 31, 2025 and 2024, $ 117 million and $ 121 million, respectively, of debt securities, equity securities, and limited partnerships are fair valued using techniques incorporating unobservable inputs and are classified in Level 3 of the fair value hierarchy.

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

• Policy Loans:

Policy loans that support funds withheld reinsurance agreements that are held at fair value under the fair value option on the Company’s Consolidated Balance Sheets are excluded from the tables above.

1 unchanged sentence

Due to the collateralized nature of policy loans and unpredictable timing of payments, the Company believes the carrying value of policy loans, which includes accrued investment income, approximates fair value and is classified as Level 3 within the fair value hierarchy.

The fair value of funds withheld payable under the Reassure America Life Insurance Company ("REALIC") reinsurance treaties is determined based upon the fair value of the funds withheld investments held by the Company and is excluded from the tables above.

The funds withheld payable under the Athene reinsurance treaty includes the Athene embedded derivative which is measured at fair value.

The valuation of the embedded derivative utilizes a total return swap technique that incorporates the fair value of the invested assets supporting the reinsurance agreement as a component of the valuation.

As a result, these valuations for the funds withheld payable under the REALIC reinsurance treaties and the Athene embedded derivative require certain significant inputs that are generally not observable and, accordingly, the valuation is considered Level 3 in the fair value hierarchy.

The GMIB reinsurance recoverable fair value calculation is based on the present value of future cash flows comprised of future expected reinsurance benefit receipts, less future attributed premium payments to reinsurers, over the lives of the contracts.

• Funds Withheld Payable:

◦ Under the Reassure America Life Insurance Company reinsurance treaties, fair value is determined based upon the fair value of the funds withheld investments held by the Company and is excluded from the tables above.

◦ Under the Athene reinsurance treaty, the calculation includes the Athene embedded derivative that is measured at fair value.

As a result, these valuations require certain significant inputs that are generally not observable and, accordingly, the valuation is considered Level 3 in the fair value hierarchy.

• GMIB reinsurance recoverable:

fair value calculation is based on the present value of future cash flows comprised of future expected reinsurance benefit receipts, less future attributed premium payments to reinsurers, over the lives of the contracts.

Estimating these cash flows requires actuarially determined assumptions related to expectations concerning policyholder behavior and long-term market volatility.

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

The MRB asset and liability fair value calculation is based on the present value of future cash flows comprised of future expected benefit payments, less future attributed fees (if applicable), over the lives of the contracts.

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

• MRB asset and liability:

fair value calculation is based on the present value of future cash flows comprised of future expected benefit payments, less future attributed fees (if applicable), over the lives of the contracts.

11 unchanged sentences

Fair Value Sales, Transfers Fair Value

as of Other Issuances in and/or as of

January 1, Net Comprehensive and (out of) December 31,

December 31, 2024 2024 Income Income Settlements Level 3 2024

as of Net Other Issuances in and/or as of

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

December 31, 2025 2025 (Loss) Income (Loss) Settlements Level 3 2025

Debt securities

Other government securities $ 150 $ — $ 6 $ ( 156 ) $ — $ —

Public utilities $ 44 $ — $ — $ ( 44 ) $ — $ —

14 unchanged sentences

Fair Value Sales, Transfers Fair Value

as of Other Issuances in and/or as of

January 1, Net Comprehensive and (out of) December 31,

December 31, 2023 2023 Income Income Settlements Level 3 2023

as of Net Other Issuances in and/or as of

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

December 31, 2024 2024 (Loss) Income (Loss) Settlements Level 3 2024

Debt securities

17 unchanged sentences

Debt securities

Other government securities $ — $ ( 156 ) $ — $ — $ ( 156 )

Public utilities $ — $ ( 44 ) $ — $ — $ ( 44 )

Corporate securities 232 ( 199 ) — — 33

Residential mortgage-backed 4 ( 4 ) — — —

Other asset-backed securities 524 ( 436 ) — — 88

4 unchanged sentences

Funds withheld payable under reinsurance treaties — — ( 1,180 ) 1,135 ( 45 )

Market risk benefit liabilities — — ( 77 ) — ( 77 )

Total $ — $ — $ ( 1,257 ) $ 1,135 $ ( 122 )

December 31, 2024 Purchases Sales Issuances Settlements Total

Debt securities

Other government securities $ — $ ( 156 ) $ — $ — $ ( 156 )

Public utilities 4 ( 45 ) — — ( 41 )

Corporate securities 230 ( 77 ) — — 153

Other asset-backed securities 250 ( 563 ) — — ( 313 )

Equity securities — ( 78 ) — — ( 78 )

Mortgage loans 227 ( 254 ) — — ( 27 )

4 unchanged sentences

In 2025, transfers from Level 3 to Level 2 of the fair value hierarchy were $ 388 million and transfers from Level 2 to Level 3 were $ 139 million.

There were $ 14 million transfers from Level 3 to NAV and no transfers from NAV to Level 3.

In 2024, transfers from Level 3 to Level 2 of the fair value hierarchy were $ 13 million, transfers from Level 2 to Level 3 were $ 102 million.

There were no transfers from Level 3 to NAV or transfers from NAV to Level 3.

In 2023, transfers from Level 3 to Level 2 of the fair value hierarchy were $ 57 million, transfers from Level 2 to Level 3 were $ 1,331 million, transfers from Level 3 to NAV were $ 7 million, and transfers from NAV to Level 3 were $ 18 million.

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

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

The 2023 Fair Value on a Recurring Basis table, Level 3 Assets and Liabilities by Price Source table, Level 3 Rollforward table, and Level 3 Purchases, Sales, Issuances and Settlements table reflect this change in classification.

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

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

Part II | Item 8.

6 unchanged sentences

Debt securities

Other government securities $ — $ — $ — $ ( 9 )

Public utilities $ — $ — $ ( 1 ) $ 1

21 unchanged sentences

$ 39,059 $ 38,552 $ — $ — $ 38,552

Reserves for guaranteed investment contracts (2)

556 546 — — 546

Trust instruments supported by funding agreements (2)

5,892 5,825 — — 5,825

FHLB funding agreements (2)

Guaranteed investment contracts and funding agreements (2)

11,021 11,077 — — 11,077

4 unchanged sentences

1,001 1,001 — 1,001 —

FHLB advances (4)

700 700 — 700 —

Separate account liabilities (5)

7 unchanged sentences

$ 34,698 $ 32,580 $ — $ — $ 32,580

Reserves for guaranteed investment contracts (2)

700 674 — — 674

Trust instruments supported by funding agreements (2)

5,756 5,601 — — 5,601

FHLB funding agreements (2)

Guaranteed investment contracts and funding agreements (2)

8,384 8,271 — — 8,271

2 unchanged sentences

Securities lending payable (3)

Repurchase agreements (3)

1,540 1,540 — 1,540 —

FHLB advances (4)

16 unchanged sentences

As a result, these investments have been classified as Level 3 within the fair value hierarchy.

Mortgage loans held under the funds withheld reinsurance agreement are valued using third-party pricing services, which may use economic inputs, geographical information, and property specific assumptions in deriving the fair value price.

Mortgage loans held under a funds withheld reinsurance agreement are valued using third-party pricing services, which may use economic inputs, geographical information, and property specific assumptions in deriving the fair value price.

The Company reviews the valuations from these pricing providers to ensure they are reasonable.

Due to lack of observable inputs, these investments have been classified as Level 3 within the fair value hierarchy.

As described under “Policy Loans” in Note 4 – Investments of Notes to Consolidated Financial Statements, due to the collateralized nature of policy loans and unpredictable timing of payments, the Company believes the carrying value of policy loans approximates fair value.

• Policy Loans:

As described under “Policy Loans” in Note 4 – Investments of these Notes to Consolidated Financial Statements, due to the collateralized nature of policy loans and unpredictable timing of payments, the Company believes the carrying value of policy loans approximates fair value.

The non-reinsurance related component of policy loans has been classified as Level 3 within the fair value hierarchy.

5 unchanged sentences

Fair values for deferred annuities, including the fixed option on variable annuities, fixed annuities, fixed index annuities and RILAs, are determined using projected future cash flows discounted at current market interest rates.

Fair values for guaranteed investment contracts, trust instruments supported by funding agreements and FHLB funding agreements are based on the present value of future cash flows discounted at current market interest rates.

Fair values for guaranteed investment contracts and funding agreements are based on the present value of future cash flows discounted at current market interest rates.

• Funds Withheld Payable Under Reinsurance Treaties:

7 unchanged sentences

Due to the short-term nature of the loans, carrying value is a reasonable estimate of fair value and is classified as Level 2.

Part II | Item 8.

Notes to Consolidated Financial Statements | 6.

Fair Value Measurements

• FHLB Advances:

4 unchanged sentences

The values of separate account liabilities are set equal to the values of separate account assets, which are comprised of investments in mutual funds that transact regularly, but do not trade in active markets as they are not publicly available and are categorized as Level 2.

Part II | Item 8.

Notes to Consolidated Financial Statements | 7.

Deferred Acquisition Costs

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

13 unchanged sentences

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

Part II | Item 8.

Notes to Consolidated Financial Statements | 7.

Deferred Acquisition Costs

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

5 unchanged sentences

Balance, beginning of period $ 11,314 $ 11,967 $ 12,699

Change in accounting principle — — —

Deferrals of acquisition costs 526 411 394

1 unchanged sentence

Variable Annuities balance, end of period $ 10,810 $ 11,314 $ 11,967

Balance, beginning of period $ 399 $ 185 $ 73

Deferrals of acquisition costs 294 244 124

Amortization ( 56 ) ( 30 ) ( 12 )

RILA balance, end of period $ 637 $ 399 $ 185

Reconciliation of total DAC

Variable Annuities balance, end of period $ 10,810 $ 11,314 $ 11,967

RILA balance, end of period 637 399 185

Other product lines, end of period 213 174 150

2 unchanged sentences

We have undertaken a comprehensive review of the assumptions used in the amortization of deferred acquisition costs, and there was no significant impact during the periods presented from changes to the mortality or persistency assumptions.

Part II | Item 8.

Notes to Consolidated Financial Statements | 8.

The Company, through its subsidiary insurance companies, assumes and cedes reinsurance from and to other insurance companies as a means of managing capital and risk exposures.

6 unchanged sentences

While the economic benefits of the investments flow to Athene, Jackson retains physical possession and legal ownership of the investments supporting the reserve.

Upon closing of the transaction, Jackson placed investments into the segregated account with a statutory book value of $ 25.6 billion.

Pursuant to the Athene coinsurance agreement, the Company holds certain assets as collateral.

At December 31, 2025 and 2024, assets held as collateral in the segregated custody account were $ 11.2 billion and $ 13.1 billion, respectively.

The investments maintained in the segregated account are valued at statutory carrying value for purposes of determining periodic settlement amounts under the Athene coinsurance agreement.

2 unchanged sentences

To further support its obligations under the coinsurance agreement, Athene procured $ 1.1 billion in letters of credit for Jackson’s benefit and established a trust account for Jackson’s benefit, which had a book value of approximately $ 110 million at December 31, 2025.

Pursuant to the Athene coinsurance agreement, the Company holds certain assets as collateral.

At December 31, 2024 and 2023, assets held as collateral in the segregated custody account were $ 13.1 billion and $ 16.3 billion, respectively.

Swiss Re Reinsurance

2 unchanged sentences

As a result of the reinsurance agreements with SRZ, Jackson withholds certain assets, primarily in the form of policy loans and debt securities, as collateral for the reinsurance recoverable.

Part II | Item 8.

Notes to Consolidated Financial Statements | 8.

The Company has also acquired certain blocks of business that are closed to new business and wholly ceded to non-affiliates.

8 unchanged sentences

Premium income and benefit expenses are reported net of reinsurance assumed and ceded.

Part II | Item 8.

Notes to Consolidated Financial Statements | 8.

The effect of reinsurance on premiums and benefits was as follows (in millions):

17 unchanged sentences

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

Part II | Item 8.

Notes to Consolidated Financial Statements | 8.

For reinsurance recoverables that are collateralized, the amount of collateral is expected to be adjusted as necessary as a result of fair value changes in that collateral.

7 unchanged sentences

The fees used to determine the fair value of the reinsurance recoverable on market risk benefits are those defined in the reinsurance contract.

Part II | Item 8.

Notes to Consolidated Financial Statements | 8.

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

20 unchanged sentences

The return earned on the assets is subject to the credit risk of the original issuer of the instrument rather than Jackson’s own creditworthiness, which results in an embedded derivative (total return swap).

Part II | Item 8.

Notes to Consolidated Financial Statements | 8.

Funds withheld under reinsurance agreement with Athene

The Company recognizes a liability for the embedded derivative related to the funds withheld under the reinsurance agreement with Athene within funds withheld payable under reinsurance treaties in the Consolidated Balance Sheets.

The Company recognizes a liability for the embedded derivative related to the funds withheld under the Athene reinsurance agreement within funds withheld payable under reinsurance treaties on the Consolidated Balance Sheets.

The embedded derivative is measured at fair value with changes in fair value reported in net gains (losses) on derivatives and investments in the Consolidated Income Statements.

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

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

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

Funds withheld under reinsurance agreements with SRZ

3 unchanged sentences

The fair value of the funds withheld payable is equal to the fair value of the assets held as collateral.

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

Part II | Item 8.

Notes to Consolidated Financial Statements | 8.

Debt securities, available-for-sale $ 7,947 $ 9,058

16 unchanged sentences

(2) Includes funds withheld embedded derivative asset (liability) of $ 1,752 million and $ 2,314 million at December 31, 2025 and 2024, respectively.

Part II | Item 8.

Notes to Consolidated Financial Statements | 8.

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

15 unchanged sentences

(3) Includes management fees.

Part II | Item 8.

Notes to Consolidated Financial Statements | 8.

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

13 unchanged sentences

(1) Includes the Athene embedded derivative gain (loss) of $( 562 ) million, $( 154 ) million and $( 690 ) million for the years ended December 31, 2025, 2024 and 2023, respectively.

Part II | Item 8.

Notes to Consolidated Financial Statements | 9.

Reserves for Future Policy Benefits and Claims Payable

Reserves for Future Policy Benefits

5 unchanged sentences

Expense assumptions are updated based on estimates of expected non-level costs, such as termination or settlement costs, and costs after the premium-paying period and exclude acquisition costs or any costs that are required to be charged to expenses as incurred.

Updates to assumptions are applied on a retrospective basis, and the change in the reserve for future policy benefits resulting from updates to assumptions is reported separately on the Consolidated Income Statements within the (gain) loss from updating future policy benefits cash flow assumptions, net.

Updates to assumptions are applied on a retrospective basis, and the change in the reserve for future policy benefits resulting from updates to assumptions is reported separately in the Consolidated Income Statements within the (gain) loss from updating future policy benefits cash flow assumptions, net.

Each reporting period the reserve for future policy benefits is updated to reflect actual experience to date.

The Company establishes cohorts, which are groupings used to measure reserves for future policy benefits.

In determining cohorts, the Company considered both qualitative and quantitative factors, including the issue year, type of product, product features, and legal entity.

In determining cohorts, the Company considers both qualitative and quantitative factors, including the issue year, type of product, product features, and legal entity.

The discount rate used to estimate reserves for future policy benefits is consistent with an upper-medium grade (low-credit risk) fixed-income corporate instrument yield, which has been interpreted to represent a single-A corporate instrument yield.

1 unchanged sentence

The discount rate used to recognize interest accretion on the reserves for future policy benefits is locked at the initial measurement of the cohort.

Each reporting period, the reserve for future policy benefits is remeasured using the current discount rate.

Each reporting period thereafter, the reserve for future policy benefits is remeasured using the current discount rate.

The difference between the reserve calculated using the current discount rate and the reserve calculated using the locked-in discount rate is recorded in OCI.

Part II | Item 8.

Notes to Consolidated Financial Statements | 9.

Reserves for Future Policy Benefits and Claims Payable

For limited-payment insurance contracts, premiums are paid over a period shorter than the period over which benefits are provided.

5 unchanged sentences

Additional Liabilities – Universal Life-type

For universal life-type insurance contracts, a liability is recognized for the policyholder’s account value as discussed further in Note 10 of the Notes to Consolidated Financial Statements .

For universal life-type insurance contracts, a liability is recognized for the policyholder’s account value as discussed further in Note 10 of these Notes to Consolidated Financial Statements .

Where these contracts provide additional benefits beyond the account balance or base insurance coverage that are not market risk benefits or embedded derivatives, liabilities in addition to the policyholder’s account value are recognized.

6 unchanged sentences

This adjustment, along with the change in net unrealized gains (losses) on available-for-sale debt securities, net of applicable tax, is credited or charged directly to equity as a component of OCI.

Part II | Item 8.

Notes to Consolidated Financial Statements | 9.

Reserves for Future Policy Benefits and Claims Payable

See Note 10 - Other Contract Holder Funds of the Notes to Consolidated Financial Statements for more information regarding other contract holder funds.

See Note 10 - Other Contract Holder Funds of these Notes to Consolidated Financial Statements for more information regarding other contract holder funds.

Other Future Policy Benefits and Claims Payable

In conjunction with a prior acquisition, the Company recorded a fair value adjustment at acquisition related to certain annuity and interest-sensitive liability blocks of business to reflect the cost of the interest guarantees within the in-force liabilities, based on the difference between the guaranteed interest rate and an assumed new money guaranteed interest rate at acquisition.

In conjunction with a prior acquisition, the Company recorded a fair value adjustment at acquisition related to certain annuity and interest-sensitive liability blocks of business to reflect the cost of the interest guarantees within the in-force liabilities, based on the difference between the guaranteed interest rate and at purchase assumed new money guaranteed interest rate.

This adjustment is included in other future policy benefits and claims payable as disclosed in the table below.

12 unchanged sentences

Reserves for future policy benefits and claims payable $ 10,896 $ 11,072

Part II | Item 8.

Notes to Consolidated Financial Statements | 9.

Reserves for Future Policy Benefits and Claims Payable

The following tables present the roll-forward of components of reserves for future policy benefits (in millions):

15 unchanged sentences

Balance, end of period $ — $ 998 $ — $ — $ 847 $ —

For the year-ended December 31, 2025, the effect of actual variances from expected experience of $ 33 million was mainly attributed to slightly lower actual premiums versus expected premiums related to our closed block products, which are mostly reinsured, resulting in an immaterial net impact to the reserve balance.

Part II | Item 8.

32 unchanged sentences

We undertook a comprehensive review of the significant assumptions used in the liability for future policy benefits calculation during 2025.

Assumptions were unlocked with the most significant impact from an update to a more recent mortality table on the life insurance business and an increase in mortality on the payout annuities.

The same mortality table update was made for the additional liabilities - universal life-type insurance contracts.

Assumptions were unlocked with the most significant impact from an update to mortality.

An update to mortality and lapse was made for the additional liabilities - universal life-type insurance contracts.

The discount rate assumption related to the single-A corporate instrument yield was updated based on current market data.

Discount rates increased in 2024 compared to 2023, based on the duration of the liability.

This resulted in a decrease in the liability.

Discount rates decreased in 2025 compared to 2024, based on the duration of the liability.

This resulted in a increase in the liability.

Refer to the roll-forward above for further details.

22 unchanged sentences

Total $ 360 $ 367 $ 331 $ 351

The following table presents the weighted average interest rate for the reserves for future policy benefits at the cohort's level for the locked-in discount rate (interest accretion rate), and current discount rate, weighted by the cohort's benefit reserve amount:

The following table presents the weighted average interest rate for the reserves for future policy benefits at the cohort level for the locked-in discount rate (interest accretion rate), and current discount rate, weighted by the cohort's benefit reserve amount:

Payout Annuities

26 unchanged sentences

The significant assumptions used in the additional liability for annuitization, death and other insurance benefits calculation consist of mortality, persistency, investment returns, and crediting rate.

We have undertaken a comprehensive review of the significant assumptions used in the additional liability for annuitization, death, and other insurance benefit calculations and updated to a more recent mortality table within the calculation.

We have undertaken a comprehensive review of the significant assumptions used in the additional liability for annuitization, death, and other insurance benefit calculations.

An update to mortality and lapse was made for the additional liabilities.

The following table presents assessments and interest expense of Closed Block Life additional liabilities for annuitization, death and other insurance benefits recognized in the Consolidated Income Statements (in millions):

5 unchanged sentences

Weighted average current discount rate 5.00 % 4.99 %

Other Contract Holder Funds

Other contract holder funds represent the policyholder account balance on our universal life-type products, investment contracts, and the fair value of the embedded derivatives associated with the indexed crediting features on our fixed index annuities and registered index-linked annuities.

Universal life type contracts have, as a principal component, an account balance in which interest is credited to policyholders and assessments are deducted for mortality risk and contract administration.

The account balance is recognized as a liability within other contract holder funds, and the liability is updated each period for fee and assessment deductions and increased for interest or returns credited to the account balance.

Part II | Item 8.

1 unchanged sentence

Other Contract Holder Funds

• Universal life-type products :

Universal life-type contracts have, as a principal component, an account balance in which interest is credited to policyholders and assessments are deducted for mortality risk and contract administration.

Certain of our universal life-type contracts contain features that are not classified as market risk benefits or embedded derivatives but provide additional benefits beyond the account balance or base insurance coverage for which a liability in addition to the account balance is necessary.

These additional liabilities for death or other insurance benefits are reported as a component of reserves for future policy benefits and claims payable in the Consolidated Balance Sheets.

See Note 9 - Reserves for Future Policy Benefits and Claims Payable of the Notes to Consolidated Financial Statements for more information regarding these additional liabilities.

See Note 9 - Reserves for Future Policy Benefits and Claims Payable of these Notes to the Consolidated Financial Statements for more information regarding these additional liabilities.

• Investment contracts :

Certain contracts without significant mortality or morbidity risk and certain annuities that lack insurance risk are treated as investment contracts.

For investment contracts, payments received are reported as liabilities and accounted for in a manner consistent with the accounting for interest-bearing or other financial instruments, within other contract holder funds.

The Company issues a variety of annuity products including variable annuities, registered index linked annuities, fixed index annuities, fixed annuities and payout annuities.

The Company issues a variety of annuity products including variable annuities, registered index linked annuities, fixed annuities, fixed index annuities, and payout annuities.

For annuity contracts that are classified as investment contracts, the liability is the account balance as of the reporting date, reported within the other contract holder funds.

For the variable annuity products, only the allocations to fixed fund options are reported in other contract holder funds.

For our fixed index annuities and registered index-linked annuities, the equity-linked option issued by the Company is accounted for as an embedded derivative measured at fair value and reported as a component of other contract holder funds on the Consolidated Balance Sheets with changes in fair value recorded in net income within net gains (losses) on derivatives and investments.

The fair value is determined using an option-budget method with capital market inputs of market index returns and discount rates as well as actuarial assumptions including lapse, mortality and withdrawal rates.

Favorable equity market movements cause increases in future contract holder benefits, resulting in an increase in the fair value of the embedded derivative liability (and vice versa).

The Company also establishes a host contract reserve to support the underlying guaranteed account value growth.

This host contract liability is included as a component of other contract holder funds on the Consolidated Balance Sheets.

Interest is accreted to the host contract liability using an effective yield method.

• Embedded derivatives - product liabilities :

For our RILA and fixed index annuities, the equity-linked option issued by the Company is accounted for at fair value as an embedded derivative on the Company's Consolidated Balance Sheets as a component of other contract holder funds, with changes in fair value recorded in net income.

The fair value of the embedded derivative for the FIA and RILA products is determined using an option-budget method with capital market inputs of market index returns and discount rates as well as actuarial assumptions including lapse, mortality and withdrawal rates.

We typically update our actuarial assumptions annually, unless a material change is observed in an interim period that we feel is indicative of a long-term trend.

Our annuity products may contain certain features or guarantees that are classified as MRBs.

These market risk benefits are a component of the market risk benefits line items in the Consolidated Balance Sheet.

See Note 12 - Market Risk Benefits of the Notes to Consolidated Financial Statements for more information regarding market risk benefits.

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

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

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

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

The carrying values at December 31, 2024 and 2023 totaled $ 5.9 billion and $ 5.8 billion, respectively.

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

The unrealized foreign currency gains and losses on those Medium-Term Note instruments are included in the carrying value of the trust instruments supported by funding agreements.

Trust instrument liabilities are adjusted to reflect the effects of foreign currency translation gains and losses using exchange rates as of the reporting date.

Foreign currency translation gains and losses are included in net gains (losses) on derivatives and investments.

Jackson is a member of the FHLBI primarily for the purpose of participating in the bank’s mortgage-collateralized loan advance program with long-term funding facilities.

Advances are in the form of funding agreements, short-term and long-term borrowings issued to FHLBI.

At December 31, 2024 and 2023, the Company held $ 127 million and $ 108 million of FHLBI capital stock, respectively, supporting $ 2.7 billion and $ 2.3 billion in funding agreements and short-term and long-term borrowings at December 31, 2024 and 2023, respectively.

At December 31, 2024 and 2023, the funding agreements and short-term and long-term borrowings were collateralized by mortgage-related securities and commercial mortgage loans with a carrying value of $ 4.2 billion and $ 3.5 billion, respectively.

See Note 12 - Market Risk Benefits of these Notes to Consolidated Financial Statements for more information regarding market risk benefits.

The Company’s institutional products business is comprised of the guaranteed investment contracts, funding agreements backed by medium-term notes ("FABN funding agreements"), funding agreements backed by commercial paper ("FABCP funding agreements"), and funding agreements issued in conjunction with the Company's participation in the U.S.

Federal Home Loan Bank ("FHLB") program ("FHLB funding agreements") described below.

• FABN funding agreements:

Jackson has established a funding agreement-backed note (“FABN”) program, pursuant to which a special purpose statutory business trust may issue up to $ 32 billion aggregate principal amount of medium-term notes and deposit the proceeds with Jackson pursuant to a FABN funding agreement issued by Jackson to the special purpose statutory trust.

The carrying values of the FABN funding agreements at December 31, 2025 and 2024 totaled $ 8.0 billion and $ 5.9 billion, respectively.

Part II | Item 8.

1 unchanged sentence

Other Contract Holder Funds

Liabilities for foreign currency denominated FABN funding agreements are adjusted to reflect the effects of foreign currency translation gains and losses using exchange rates as of the reporting date.

Foreign currency translation gains and losses are included in net gains (losses) on derivatives and investments.

FABN funding agreements issued in a foreign currency have been hedged for changes in exchange rates using cross-currency swaps.

• FABCP funding agreements:

In the second quarter of 2025, Jackson established a FABCP funding agreement program, pursuant to which a special purpose limited liability company may issue commercial paper and deposit the proceeds with Jackson under FABCP funding agreements issued by Jackson to the special purpose limited liability company.

The current maximum aggregate principal amount permitted to be outstanding at any one time under the program is $ 3.0 billion.

As of December 31, 2025, the Company had $ 626 million outstanding under the program.

• FHLB funding agreements:

Jackson is a member of the FHLBI primarily for the purpose of participating in the bank’s mortgage-collateralized loan advance program with long-term funding facilities.

Advances are in the form of funding agreements issued to, and short-term and long-term borrowings from, FHLBI.

At December 31, 2025 and 2024, the Company held $ 119 million and $ 127 million of FHLBI capital stock, respectively, supporting $ 1.9 billion and $ 2.7 billion in FHLB funding agreements and short-term and long-term borrowings at December 31, 2025 and 2024, respectively.

At December 31, 2025 and 2024, the FHLB funding agreements and short-term and long-term borrowings were collateralized by mortgage-related securities and commercial mortgage loans with a carrying value of $ 2.8 billion and $ 4.2 billion, respectively.

The following table presents the liabilities for other contract holder funds (in millions):

1 unchanged sentence

RILA 20,282 11,685

Fixed Index Annuities 8,515 10,243

Fixed Annuity 9,494 9,615

Fixed Index Annuities 7,946 8,515

Payout Annuity 854 844

4 unchanged sentences

Total other contract holder funds $ 67,663 $ 58,312

Part II | Item 8.

Notes to Consolidated Financial Statements | 10.

Other Contract Holder Funds

The following table presents a roll-forward of other contract holder funds, gross of reinsurance (in millions):

Fixed Closed Closed

Variable Index Fixed Payout Block Block

Annuity RILA Annuities Annuity Annuity Life Annuity Total

Variable Fixed Indexed Payout Block Block

Annuity RILA Annuity Annuities Annuity Life Annuity Total

Balance as of January 1, 2025 $ 7,206 $ 11,685 $ 9,615 $ 8,515 $ 844 $ 10,750 $ 1,149 $ 49,764

7 unchanged sentences

Fixed Closed Closed

Variable Index Fixed Payout Block Block

Annuity RILA Annuities Annuity Annuity Life Annuity Total

Variable Fixed Indexed Payout Block Block

Annuity RILA Annuity Annuities Annuity Life Annuity Total

Balance as of January 1, 2024 $ 8,396 $ 5,219 $ 9,736 $ 10,243 $ 860 $ 11,039 $ 1,252 $ 46,745

6 unchanged sentences

Balance as of December 31, 2024 $ 7,206 $ 11,685 $ 9,615 $ 8,515 $ 844 $ 10,750 $ 1,149 $ 49,764

Part II | Item 8.

Notes to Consolidated Financial Statements | 10.

Other Contract Holder Funds

The following table presents weighted average crediting rate, net amount at risk, and cash surrender value of contract holder account balances (dollars in millions):

Fixed Closed Closed

Variable Index Fixed Payout Block Block

Annuity RILA Annuities Annuity Annuity Life Annuity

Variable Fixed Indexed Payout Block Block

Annuity RILA Annuity Annuities Annuity Life Annuity

December 31, 2025

14 unchanged sentences

(2) Net amount at risk represents the standard excess benefit base for guaranteed death benefits on universal life type products.

The net amount at risk associated with market risk benefits are presented within Note 12 - Market Risk Benefits of the Notes to Consolidated Financial Statements.

The net amount at risk associated with market risk benefits are presented within Note 12 - Market Risk Benefits of these Notes to Consolidated Financial Statements.

(3) Cash surrender value represents the amount of the contract holder’s account balance distributable at the balance sheet date less the applicable surrender charges.

19 unchanged sentences

1.51 %- 2.50 %

$ — $ — $ — $ — —

Greater than 2.50 %

136 93 — — 229

Total $ 141 $ 93 $ 3 $ 3 $ 240

Fixed Index Annuities

Fixed Annuities

0.00 %- 1.50 %

4 unchanged sentences

Total $ 3,042 $ 71 $ 13 $ 306 $ 3,432

Fixed Annuities

Fixed Index Annuities

0.00 %- 1.50 %

37 unchanged sentences

Total $ 95 $ 10 $ 3 $ 4 $ 112

Fixed Index Annuities

Fixed Annuities

0.00 %- 1.50 %

4 unchanged sentences

Total $ 2,133 $ 86 $ 30 $ 266 $ 2,515

Fixed Annuities

Fixed Index Annuities

0.00 %- 1.50 %

23 unchanged sentences

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

The Company also issues variable annuity and life contracts through separate accounts where the Company contractually guarantees to the contract holder (variable contracts with guarantees) either a) return of no less than total deposits made to the account adjusted for any partial withdrawals, b) total deposits made to the account adjusted for any partial withdrawals plus a minimum return, or c) the highest account value on a specified anniversary date adjusted for any withdrawals following the contract anniversary.

The Company also issues variable contracts through separate accounts where the Company contractually guarantees to the contract holder (variable contracts with guarantees) the following:

a) return of no less than total deposits made to the account adjusted for any partial withdrawals, b) total deposits made to the account adjusted for any partial withdrawals plus a minimum return, or c) the highest account value on a specified anniversary date adjusted for any withdrawals following the contract anniversary.

These guarantees include benefits that are payable in the event of death (guaranteed minimum death benefits, or "GMDB"), at annuitization (guaranteed minimum income benefits, or "GMIB"), upon the depletion of funds (guaranteed minimum withdrawal benefits, or "GMWB") or at the end of a specified period (guaranteed minimum accumulation benefits, or "GMAB").

These guarantees are classified as market risk benefits.

See Note 12 - Market Risk Benefits of the Notes to Consolidated Financial Statements for more information regarding market risk benefits.

See Note 12 - Market Risk Benefits of these Notes to Consolidated Financial Statements for more information regarding market risk benefits.

The separate account assets supporting the variable portion of both traditional variable annuities and variable contracts with guarantees are carried at fair value and reported as summary total separate account assets with an equivalent summary total reported for separate account liabilities.

3 unchanged sentences

Amounts assessed against the contract holders for mortality, variable annuity benefit guarantees, administrative, and other services are reported in revenue as fee income.

Included in the separate account assets and liabilities described above is a Jackson issued group variable annuity contract designed for use in connection with and issued to the Company’s Defined Contribution Retirement Plan.

These deposits are allocated to the Jackson National Separate Account - II, which had balances of $ 208 million and $ 198 million at December 31, 2024 and 2023, respectively.

The Company receives administrative fees for managing the funds.

These fees are recorded as earned and included in fee income in the Consolidated Income Statements.

The following table presents the roll-forward of the separate account balance for variable annuities (in millions):

1 unchanged sentence

Balance as of beginning of period $ 228,851 $ 219,381

Deposits 9,839 8,545

Surrenders, withdrawals and benefits (1)

( 27,633 ) ( 27,016 )

Net transfer from (to) general account ( 372 ) ( 94 )

4 unchanged sentences

$ 231,711 $ 224,157

(1) Excludes certain internal exchanges.

(2) Cash surrender value represents the amount of the contract holder’s account balances distributable at the balance sheet date less applicable surrender charges.

Part II | Item 8.

Notes to Consolidated Financial Statements | 11.

Separate Account Assets and Liabilities

The following table presents the reconciliation of the separate account balance in the Consolidated Balance Sheets (in millions):

The following table presents the reconciliation of the separate account balance on the Consolidated Balance Sheets (in millions):

Variable Annuities $ 236,406 $ 228,851

1 unchanged sentence

Total $ 236,496 $ 229,143

Part II | Item 8.

Notes to Consolidated Financial Statements | 11.

Separate Account Assets and Liabilities

Included in the separate account balance of Other Product Lines above are separate account assets related to a Jackson-issued group variable annuity contract designed for use in connection with and issued to the Company’s Defined Contribution Retirement Plan ("the Plan").

As of December 31, 2024, these separate account assets, and the related separate account liabilities, totalled $ 208 million.

During 2025, the Plan withdrew all assets held under this variable annuity contract and transferred them to other investment options under the Plan.

As of December 31, 2025, separate account assets and separate account liabilities related to this variable annuity contract are nil .

The following table presents aggregate fair value of assets, by major investment asset category, supporting separate accounts (in millions):

13 unchanged sentences

Market risk benefit assets and Market risk benefit liabilities are reported separately on the Consolidated Balance Sheets.

Changes in fair value are reported in Net (gains) losses on market risk benefits on the Consolidated Income Statements.

Changes in fair value are reported in Net (gains) losses on market risk benefits in the Consolidated Income Statements.

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

A description of the items effecting the change in fair value by category is as follows:

A description of the items affecting the change in fair value by category is as follows:

• Changes in interest rates — movement in risk free rates (impacts both assumed future separate account returns and discounting of cash flows)

4 unchanged sentences

• Time — effect of passage of time including reduction to separate account balances from fees, the change in proximity of future cash flows, and impacts to policy features such as bonus credits

• Change in assumptions — changes in assumptions resulting from our periodic review

• Change in assumptions — effect of actuarial assumption updates and model enhancements

• Change in non-performance risk — changes in Jackson’s non-performance risk

See Note 6 - Fair Value Measurements of the Notes to Consolidated Financial Statements for more information regarding fair value measurements.

See Note 6 - Fair Value Measurements of these Notes to Consolidated Financial Statements for more information regarding fair value measurements.

Additionally, when an annuitization occurs (for annuitization benefits) or upon extinguishment of the account balance (for withdrawal benefits), the balance related to the MRB is derecognized and the amount deducted (after derecognition of any related amount included in accumulated other comprehensive income) is used in the calculation of the liability for future policy benefits for the resulting payout annuity.

Part II | Item 8.

1 unchanged sentence

Market Risk Benefits

Variable Annuities

9 unchanged sentences

As the Company may issue contracts that have projected future liabilities greater than the projected future guaranteed benefit fees at issue, the Company may also attribute mortality and expense charges when performing this calculation.

In subsequent valuations, both the present value of future projected liabilities and the present value of projected attributed fees are remeasured based on current market conditions and policyholder behavior assumptions.

Fixed Index Annuities

The longevity riders issued on fixed index annuities are classified as MRBs and measured at fair value.

Similar to the variable annuity guaranteed benefits features, these contracts have explicit fees and are measured using the attributed fee method.

The Company attributes a percentage of total projected future fees expected to be assessed against the policyholder to offset the projected future claims over the lifetime of the contract.

If the fees attributed are insufficient to offset the claims at issue, the shortfall is borrowed from the host contract rather than recognizing a loss at inception.

RILA guaranteed benefit features are classified as MRBs and measured at fair value.

The fair value measurement represents the present value of future claims payable by the MRB feature.

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

The following table presents the reconciliation of the market risk benefits balance in the Consolidated Balance Sheets (in millions):

In subsequent valuations, the present value of both future projected liabilities and projected attributed fees are remeasured based on current market conditions and policyholder behavior assumptions.

Fixed Index Annuities and RILA

Our FIA and RILA contracts may be issued with features that guarantee benefits that are payable upon death (GMDB) or upon depletion of funds (GMWB).

These features are classified as MRBs and measured at fair value.

If the projected attributed fees are insufficient to offset the projected guaranteed benefits at issue, an MRB liability is recognized at issuance and the value of the MRB is deducted from the host contract liability resulting in no gain or loss on issuance of the contract.

If the guaranteed benefits do not have explicit fees, the fair value of the MRB is measured as the present value of projected future guaranteed benefits.

At inception, the initial value of the MRB is deducted from the host contract liability resulting in no gain or loss on issuance of the contract.

The following table presents the reconciliation of the market risk benefits balance on the Consolidated Balance Sheets (in millions):

December 31, 2025 December 31, 2024

30 unchanged sentences

At each reporting date, the Company regularly evaluates the inputs and assumptions to be used to measure the fair value of the MRB assets and MRB liabilities.

In prior periods, the non-performance risk adjustment was determined based on credit spreads indicated by a blend of yields on similarly rated peer debt and yields on Company debt.

Starting June 30, 2023, non-performance risk is incorporated into the calculation through the adjustment of the risk-free rate curve based only on credit spreads for debt and debt-like instruments issued by the Company or its insurance operating subsidiaries, adjusted, as necessary, to reflect the financial strength ratings of the issuing insurance subsidiaries.

Since June 30, 2023, non-performance risk is incorporated into the calculation through the adjustment of the risk-free rate curve based only on credit spreads for debt and debt-like instruments issued by the Company or its insurance operating subsidiaries, adjusted, as necessary, to reflect the financial strength ratings of the issuing insurance subsidiaries.

Prior thereto, the non-performance risk adjustment was determined based on credit spreads indicated by a blend of yields on similarly rated peer debt and yields on Company debt.

The change was made as a result of management’s determination that the reliability of credit spreads on debt and debt-like instruments issued by the Company as a measure of company-specific credit risk has increased due to sustained levels of market trading volume of these instruments.

The significant assumptions used in the MRB fair value calculations are discussed in Note 6 - Fair Value Measurements of the Notes to Consolidated Financial Statements.

The use of models and assumptions used to determine fair value of MRBs requires a significant amount of judgement.

The significant assumptions used in the MRB fair value calculations are discussed in Note 6 - Fair Value Measurements of these Notes to Consolidated Financial Statements.

The use of models and assumptions used to determine fair value of MRBs requires a significant amount of judgment.

As such, we have undertaken a comprehensive review of the significant assumptions used.

During 2025, the following notable changes were made to the inputs and assumptions used in the fair value estimates of the MRB calculations:

• Increases in interest rates led to higher assumed separate account returns and higher discount rates, which resulted in a decrease to the MRB reserve.

• Decreases in short-term interest rates and slight increases in long-term interest rates led to lower assumed separate account returns, but also lower discount rates on primarily fee cashflows and higher discount rates on primarily claim cashflows.

The combination of these effects resulted in a decrease to the MRB reserve.

• Increases in equity markets led to higher separate account fund performance and a decrease in future projected benefits, which resulted in a decrease in the MRB reserve.

• Impacts of our annual assumption review resulted in an increase in the MRB reserve.

This reserve increase was primarily related to data enhancements and assumption updates for withdrawal utilization on policies with GMWBs.

• Decreases in equity index volatility led to higher assumed separate account returns, which resulted in a decrease in the MRB reserve.

• The non-performance risk adjustment decreased as a result of decreasing spreads on the short end of the curve, which resulted in an increase in the MRB reserve that was recorded within OCI.

This reserve increase was primarily related to updated policyholder behavior assumptions such as lapse and partially offset by updated mortality assumptions and model enhancements.

• Increases in equity index volatility led to lower assumed separate account returns, which resulted in an increase in the MRB reserve.

Part II | Item 8.

1 unchanged sentence

Market Risk Benefits

• The non-performance risk adjustment decreased as a result of decreasing spreads which resulted in an increase in the MRB reserve that was recorded within OCI.

During 2024, the following notable changes were made to the inputs and assumptions used in the fair value estimates of the MRB calculations:

• Increases in equity markets led to higher separate account fund performance and a decrease in future projected benefits, which resulted in a decrease in the MRB reserve.

• Decreases in equity index volatility led to higher assumed separate account returns, which resulted in a decrease in the MRB reserve.

• Increases in interest rates led to higher assumed separate account returns and higher discount rates, which resulted in a decrease to the MRB reserve.

• Increases in equity markets led to higher separate account fund performance and a decrease in future projected benefits, which resulted in a decrease in the MRB reserve.

• Impacts of our annual assumption review resulted in an increase in the MRB reserve.

This reserve increase was primarily related to assumption updates to lapse rates and GMWB withdrawal utilization.

• The non-performance risk adjustment decreased as a result of decreasing credit spreads, which resulted in an increase in the MRB reserve that was recorded within OCI.

This reserve increase was primarily related to data enhancements and assumption updates for withdrawal utilization on policies with GMWBs.

• Decreases in equity index volatility led to higher assumed separate account returns, which resulted in a decrease in the MRB reserve.

• The non-performance risk adjustment decreased as a result of decreasing spreads on the short end of the curve, which resulted in an increase in the MRB reserve that was recorded within OCI.

Long-Term Debt

14 unchanged sentences

Long-term debt $ — $ 649 $ — $ — $ 1,381 $ 2,030

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

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

Revolving Credit Facility

On February 24, 2023, the Company replaced the 2021 Revolving Credit Facility that was due to expire in February 2024 and entered into a revolving credit facility (the "2023 Revolving Credit Facility") with a syndicate of banks and Bank of America, N.A., as Administrative Agent.

On February 24, 2023, the Company replaced its prior revolving credit facility that was scheduled to expire in February 2024, with a new revolving credit facility (the "2023 Revolving Credit Facility ") with a syndicate of banks and Bank of America, N.A., as Administrative Agent.

The 2023 Revolving Credit Facility provides for borrowings for working capital and other general corporate purposes under aggregate commitments of $ 1.0 billion, with a sub-limit of $ 500 million available for letters of credit.

3 unchanged sentences

Long-Term Debt

The credit agreement for the 2023 Revolving Credit Facility 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 %.

The credit agreement for the 2023 Revolving Credit Facility 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 the 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 %.

Commitments under the 2023 Revolving Credit Facility terminate on February 24, 2028.

5 unchanged sentences

Interest is payable semi-annually on March 15th and September 15th of each year.

Interest expense on the notes was $ 20 million, $ 20 million, and $ 20 million for the years ended December 31, 2024, 2023 and 2022, respectively.

Interest expense on the notes was $ 20 million in each of the years ended December 31, 2025, 2024 and 2023.

The Company received loans of $ 50 million from the FHLBI under its community investment program in both 2015 and 2014, which amortize on a straight-line basis over the loan term.

1 unchanged sentence

The outstanding balance on these loans was $ 47 million and $ 52 million at December 31, 2025 and 2024, respectively.

See Note 10 - Other Contract Holder Funds of the Notes to Consolidated Financial Statements for the carrying value of our collateralization of our FHLB obligations .

See Note 10 - Other Contract Holder Funds of these Notes to Consolidated Financial Statements for the carrying value of our collateralization of our FHLB obligations .

Line of Credit Agreement

6 unchanged sentences

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

Advances of $ 700 million and $ 250 million were outstanding at December 31, 2024 and 2023, respectively, and were recorded in other liabilities.

Interest expense on such advances was $ 6 million, $ 7 million, and nil for the years ended December 31, 2024, 2023 and 2022, respectively.

See Note 10 - Other Contract Holder Funds of the Notes to Consolidated Financial Statements for the carrying value of our collateralization of our FHLB obligations .

Advances of nil and $ 700 million were outstanding at December 31, 2025 and 2024, respectively, and were recorded in other liabilities.

Interest expense on such advances was $ 6 million, $ 6 million, and $ 7 million for the years ended December 31, 2025, 2024 and 2023, respectively.

See Note 10 - Other Contract Holder Funds of these Notes to Consolidated Financial Statements for the carrying value of securities pledged as collateral for our FHLB obligations .

Part II | Item 8.

1 unchanged sentence

Tax Law Changes

On September 12, 2024, the U.S.

Treasury Department and the Internal Revenue Service released proposed regulations addressing the application of the corporate alternative minimum tax (“CAMT”) that was enacted as part of the Inflation Reduction Act of 2022 (“IRA”).

On December 23, 2024, the U.S.

Treasury Department and the Internal Revenue Service released technical corrections to those proposed regulations.

The proposed regulations reflecting the technical corrections are generally applicable to tax years ending after September 12, 2024 and consistent with many of the provisions provided in prior CAMT guidance.

In 2024, the Company did not elect to early adopt the proposed regulations for the 2023 tax returns and relied on reasonable interpretations of previously published guidance resulting in a reduction of $ 263 million to the estimated CAMT liability and the related CAMT deferred tax asset previously recorded as of December 31, 2023.

The Company recorded nil at December 31, 2024 of estimated CAMT liability and the related CAMT deferred tax asset for the 2024 tax year based on carryover impacts from the 2023 tax return and consideration of the applicability of the proposed regulations.

Treasury Department is expected to issue Final Regulations after the year ended December 31, 2024, which may materially change the estimated provision of the CAMT.

The One Big Beautiful Bill Act ("OBBBA") was enacted on July 4, 2025 and includes a broad range of tax reform provisions that impact corporations which are effective for the 2025 tax year.

As of December 31, 2025, the corporate income tax provision effective for the 2025 tax year did not impact the Company's current income tax liability.

As of December 31, 2025, the Company recorded a $ 2 million valuation allowance expense related to the provision in the law that impacted the Company's ability to utilize the deferred tax asset for the charitable contributions carryover.

Effective Tax Rate

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2025 2024 2023

Current tax expense (benefit)

Income (Loss) from continuing operations before income tax (benefit) expense $ ( 159 ) $ 992 $ 938

Income tax (benefit) expense from continuing operations:

Current tax (benefit) expense

Federal $ ( 15 ) $ ( 250 ) $ 213

State and local 2 2 ( 2 )

Total current tax expense (benefit) ( 248 ) 211 ( 42 )

Deferred tax expense (benefit)

Total current tax (benefit) expense ( 13 ) ( 248 ) 211

Deferred tax (benefit) expense

Federal ( 172 ) 275 ( 205 )

State and local ( 1 ) 19 ( 2 )

Total deferred tax expense (benefit) 294 ( 207 ) 1,547

Total income taxes $ 46 $ 4 $ 1,505

Total deferred tax (benefit) expense ( 173 ) 294 ( 207 )

Total income tax (benefit) expense

Federal ( 187 ) 25 8

State and local 1 21 ( 4 )

Total income tax (benefit) expense $ ( 186 ) $ 46 $ 4

The federal income tax provisions differ from the amounts determined by multiplying pretax income attributable to the Company by the statutory federal income tax rate of 21% as follows (in millions):

1 unchanged sentence

2025 2024 2023

Income taxes at statutory rate $ 208 $ 197 $ 1,615

State income taxes 17 ( 1 ) 47

Amount Percentage Amount Percentage Amount Percentage

Federal Income taxes at statutory rate $ ( 33 ) 21.0 % $ 208 21.0 % $ 197 21.0 %

Domestic Federal

Foreign tax credits ("FTC") (1)

( 64 ) 40.0 % ( 37 ) ( 3.7 ) % ( 48 ) ( 5.1 ) %

Nontaxable and nondeductible items

Dividends received deduction ( 121 ) 75.7 % ( 134 ) ( 13.5 ) % ( 133 ) ( 14.2 ) %

Valuation allowance ( 6 ) ( 7 ) 2

Foreign and other tax credits (1)

Nondeductible compensation (2)

9 ( 5.8 ) % 11 1.1 % 5 0.5 %

2 ( 0.6 ) % ( 4 ) ( 0.5 ) % ( 8 ) ( 0.8 ) %

Income tax (benefit) expense $ 46 $ 4 $ 1,505

Effective tax rate 4.6 % 0.5 % 19.6 %

(1) For the years ended December 31, 2024, 2023 and 2022, this primarily represents the benefit from foreign tax credits generated by the fund investments of the variable life and annuity contracts.

(2) Aggregation of insignificant reconciling items that are less than 5% of the computed income tax expense (benefit).

Net tax refund interest (benefit) (2)

( 11 ) 7.2 % ( 9 ) ( 0.9 ) % ( 1 ) ( 0.1 ) %

Valuation allowance 31 ( 19.7 ) % ( 5 ) ( 0.5 ) % ( 5 ) ( 0.5 ) %

Domestic state and local income taxes, net of federal effect (4)

1 ( 0.8 ) % 16 1.6 % ( 3 ) ( 0.3 ) %

Total Income tax (benefit) expense $ ( 186 ) 117.0 % $ 46 4.6 % $ 4 0.5 %

Reconciling items recorded in the current year to adjust prior year income taxes for items such as for the return-to-provision true-ups are included in the

reconciling item category in which they would have been included in the prior year.

(1) For the years ended December 31, 2025, 2024 and 2023, this represents the net benefit from foreign tax credits generated by the fund investments of the variable life and annuity contracts.

Part II | Item 8.

Notes to Consolidated Financial Statements | 15.

(2) For the year ending December 31, 2025, the Company has determined this meets the 5% disclosure threshold.

As a result, comparative amounts are

presented for the years ending December 31, 2024 and December 31, 2023.

(3) Aggregation of insignificant reconciling items that are less than the 5% of the computed income tax expense (benefit) threshold in each year presented.

(4) For the year ending December 31, 2025, state and local income taxes in Florida and Illinois comprise the majority of the state and local income taxes, net of federal category.

For the year ending December 31, 2024, state and local income taxes in Florida comprise the majority of the state and local income taxes net of federal category.

For the year ending December 31, 2023, state and local income taxes in New York comprise the majority of the state and local income taxes net of federal category.

The dividends received deduction (“DRD”) reduces the amount of income subject to tax.

1 unchanged sentence

The actual current year DRD can vary based on factors such as changes in the amount of dividends received that are eligible for the DRD, changes in the amount of distributions received from fund investments, changes in the account balances of variable life and annuity contracts, and the Company’s taxable income before the DRD.

Income Taxes Paid

Income taxes paid (refunded) were $( 8 ) million, $( 21 ) million, and $( 5 ) million in 2024, 2023 and 2022, respectively.

The income taxes refunded in 2024 include $( 12 ) million of net IRS interest.

Income Taxes Paid (Refunded)

Years Ended December 31,

2025 2024 2023

$ ( 98 ) $ ( 10 ) $ ( 21 )

State and Local (2)

Total $ ( 97 ) $ ( 8 ) $ ( 21 )

(1) The income taxes refunded in 2025, 2024, and 2023 include $( 11 ), $( 12 ), and $( 2 ) million of net IRS interest, respectively.

(2) For the year ending December 31, 2025 and December 31, 2024 payments to Florida comprise the majority of the state and local income taxes paid (refunded).

Deferred Taxes and Assessment of Valuation Allowance

19 unchanged sentences

Net deferred tax asset $ 719 $ 480

Deferred income taxes arise from the recognition of temporary differences between the basis of assets and liabilities determined for financial reporting purposes and the basis determined for income tax purposes.

Such temporary differences are principally related to the effects of recording certain invested assets at market value, the deferral of acquisition costs and sales inducements, the provisions for future policy benefits and expenses, and net operating losses.

Deferred tax assets and liabilities are measured using the tax rates expected to be in effect when such benefits are realized.

In 2016, the Company reached an agreement with the IRS regarding the taxation of hedging activities.

This agreement requires the current taxation of all unrealized gains and losses on hedge-related investments, but then defers two-thirds of the amount ratably over the following two years .

Accordingly, there is an acceleration of taxes incurred currently and a related offset to the taxes being deferred.

Part II | Item 8.

20 unchanged sentences

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

As of December 31, 2024, based on all available evidence, the Company concluded that a valuation allowance should be established on a portion of the deferred tax asset related to unrealized losses that are not more likely than not to be realized.

For the year ended December 31, 2024, the Company recorded an increase of $ 45 million to the valuation allowance associated with the realized capital losses and the unrealized tax losses in the Company’s available for sale securities portfolio.

The $ 45 million increase for the twelve months ending December 31, 2024 to the valuation allowance consists of $ 51 million tax expense recorded to other comprehensive income and $ 6 million tax benefit recorded in the income tax expense.

At December 31, 2024 and 2023, the Company has recorded a total valuation allowance of $ 734 million and $ 689 million, respectively, primarily associated with the unrealized tax losses in the Life Companies’ available for sale securities portfolio where it is not more likely than not that the full tax benefit of the losses will be realized.

As of December 31, 2025, based on all available evidence, the Company concluded that a valuation allowance should be established on a portion of the deferred tax asset related to unrealized losses and charitable contributions carryover, which was impacted by the OBBBA, that are not more likely than not to be realized.

For the year ended December 31, 2025, the Company recorded an decrease of $ 250 million to the valuation allowance associated with the realized capital losses and the unrealized tax losses in the Company’s available for sale securities portfolio, and recorded an increase of $ 2 million for the charitable contributions carryover.

The $ 248 million decrease for the twelve months ending December 31, 2025 to the valuation allowance consists of $ 280 million tax benefit recorded to other comprehensive income and $ 32 million tax expense recorded in the income tax expense.

At December 31, 2025 and 2024, the Company has recorded a total valuation allowance of $ 486 million and $ 734 million, respectively, primarily associated with the unrealized tax losses in the Life Companies’ available for sale securities portfolio and charitable contributions carryover where it is not more likely than not that the full tax benefit of the losses will be realized.

Part II | Item 8.

13 unchanged sentences

Alternative Minimum Credit (6)

Other Tax Credits (7)

Total $ 10,881 $ 9,153

(1) Unlimited carryforward.

(2) Begins to expire in 2026.

Annual limitation is approximately $ 21 million.

(3) For the year ended December 31, 2024, $ 399 million expires in 0 - 20 years and $ 195 million unlimited carryforward.

(4) For the year ended December 31, 2024, $ 14 million expires in 2028 and $ 102 million expires in 2029.

(2) Subject to annual limitation.

$ 126 million can be used in 2026.

$ 126 million expires in 2026 and $ 11 million expires in 2027.

(3) For the year ended December 31, 2025, includes $ 497 million expires in 0 - 20 years and $ 319 million unlimited carryforward.

(4) For the year ended December 31, 2025, includes $ 11 million expires in 2028, $ 89 million expires in 2029, and $ 64 million expires in 2030.

(5) 10 year carryforward and begin to expire in 2031.

(6) Subject to 383 limitations

(6) Subject to Section 383 limitations.

(7) 20 year carryforward and begin to expire in 2041.

Accounting for Uncertainty in Income Taxes

4 unchanged sentences

The Company recognizes interest and penalties accrued, if any, related to unrecognized tax benefits as a component of income tax (benefit) expense.

The Company did not recognize any material interest and penalty expense in 2024, 2023 or 2022.

For 2024 and 2023, the Company had accrued total interest expense of nil and an immaterial amount, respectively.

For 2024 and 2023, the Company did not accrue any amounts for penalties.

Based on information available as of December 31, 2024, the Company believes that, in the next 12 months, there are no positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly increase or decrease.

The Company did no t recognize any interest and penalty expense in 2025, 2024 or 2023.

For 2025 and 2024, the Company did no t accrue any amounts for interest expense or penalties.

Tax Examinations and Litigation

The Company is no longer subject to U.S.

federal tax examinations by tax authorities for years prior to 2019.

The Company is subject to examination by the Internal Revenue Service and other tax authorities in jurisdictions in which the Company operates.

The Company is not currently subject to federal, state or local income tax examination.

The IRS completed an examination of the 2019-2023 Brooke Life Insurance Company and Subsidiaries federal consolidated returns during 2025 that resulted in no changes.

Tax years from 2022 to 2025 remain open under the statute of limitations.

The 2019 to 2023 Brooke Life consolidated life insurance federal income tax returns are under examination by the Internal Revenue Service.

The 2018 IRS exam of the JFI non-life federal consolidated return closed during 2022 with no material impact to the Company.

Certain of the Company’s subsidiaries’ state income tax returns are currently under examination by various jurisdictions for years ranging from 2018 to 2022.

The Company does not anticipate any material changes from any of these audits.

Part II | Item 8.

Notes to Consolidated Financial Statements | 15.

Organization and Tax Sharing Agreements

2 unchanged sentences

federal government and various state and local jurisdictions, as well as certain foreign jurisdictions.

Part II | Item 8.

Notes to Consolidated Financial Statements | 15.

Jackson Financial and its non-life insurance subsidiaries, Jackson Holdings, LLC and PPM, file a consolidated non-life federal income tax return.

Brooke Life files a consolidated life insurance company tax return with Jackson, JNY, Squire Re II and Brooke Re.

Jackson National Life (Bermuda) LTD, which was dissolved in November 2024, and VFL International Life Company SPC, LTD are taxed as controlled foreign corporations of Jackson.

Brooke Life files a consolidated life insurance company tax return with Jackson, JNY, Squire Re II, Brooke Re, and Hickory Re.

VFL International Life Company SPC, LTD is taxed as a controlled foreign corporation of Jackson.

With the exception of several insignificant wholly-owned subsidiaries that are not included in the Brooke Life consolidated tax return, all other subsidiaries of Jackson are limited liability companies with all of their interests owned by Jackson.

3 unchanged sentences

These tax sharing agreements are generally based on a separate return basis with benefits for credits and losses.

Brooke Life, Jackson, JNY, Squire RE II, and Brooke Re have entered into written tax sharing agreements.

Brooke Life, Jackson, JNY, Squire RE II, Brooke Re and Hickory Re have entered into written tax sharing agreements.

These tax sharing agreements are generally based on a separate return basis with benefits for credits and losses.

6 unchanged sentences

However, it is the opinion of management that the ultimate disposition of contingent liabilities is unlikely to have a material adverse effect on the Company’s financial position.

Jackson has been named in civil litigation proceedings, which appear to be substantially similar to other class action litigation brought against many life insurers including allegations of misconduct in the sale of insurance products.

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

10 unchanged sentences

The Company elected the practical expedient to combine lease and non-lease components for certain real estate leases.

Part II | Item 8.

Notes to Consolidated Financial Statements | 17.

Variable lease expenses may include changes in index-linked lease payments and certain variable operating expenses associated with real estate leases.

2 unchanged sentences

Net lease expense was $ 57 million, $ 53 million, and $ 43 million in 2025, 2024 and 2023, respectively, including expenses associated with software leases.

Part II | Item 8.

Notes to Consolidated Financial Statements | 17.

The following table summarizes the components of operating lease costs and other information related to operating leases recorded within operating costs and other expenses, net of deferrals (dollars in millions):

12 unchanged sentences

At December 31, 2025, the maturities of operating lease liabilities were as follows (in millions):

Thereafter 37

Present value of lease liabilities $ 56

1 unchanged sentence

2021 Omnibus Incentive Plan

In April 2021, the Company’s Board of Directors adopted, and the Company’s shareholders approved, Jackson Financial Inc.’s 2021 Omnibus Incentive Plan (the “Incentive Plan”).

This Incentive Plan became effective following the completion of the Demerger and replaced the Prudential share plans.

The outstanding unvested awards previously issued under the Prudential share plans were exchanged for equivalent awards of shares of JFI’s Common Stock under the Incentive Plan, with a grant date of October 4, 2021.

The performance conditions of the awards were modified to be based on U.S.

GAAP based metrics.

The incremental compensation cost resulting from the modifications is being recognized ratably over the remaining requisite service period of each award.

In April 2021, the Company’s Board of Directors adopted, and the Company’s shareholders approved, Jackson Financial Inc.’s 2021 Omnibus Incentive Plan (the “2021 OIP”).

The 2021 OIP became effective upon the Company becoming an independent public company.

The 2021 OIP allows for stock-based awards including stock options, stock appreciation rights, restricted share awards, restricted share unit awards, performance share awards, and deferred share units.

The 2021 OIP has a ten-year term, expiring in September 2031.

The Company currently has restricted share unit and performance share unit equity-based compensation awards outstanding.

Dividend equivalents generally accrue on restricted share units and performance share units outstanding as of the dividend record date.

These dividend equivalents are accrued and are paid out only upon vesting of the related restricted share units and performance share units.

Generally, the requisite service period is the vesting period.

In the case of retirement (eligibility is based on the associate's age and years of service as provided in the relevant award agreement), awards vest in full but are subject to the satisfaction of any applicable performance criteria and paid in line with the original vesting date.

The number of shares of the Company’s common stock that may be issued pursuant to awards under the 2021 OIP shall not exceed 11,000,000 shares paid out in cash, including shares withheld to cover associate payroll taxes, as well as shares that expire, terminate, or are canceled or forfeited, may be awarded or granted again under the 2021 OIP.

The Company reflects the cash settled awards under the 2021 OIP as a liability classified plan and, therefore, reports the accrued compensation expense and the value of the cash settled awards within other liabilities.

At December 31, 2025 and 2024, the Company had $ 132 million and $ 139 million, respectively, accrued for future payments under the 2021 OIP.

Part II | Item 8.

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Share-Based Compensation

The Incentive Plan allows for stock-based awards including stock options, stock appreciation rights, restricted share awards, performance share awards, and deferred share units.

The Incentive Plan has a ten-year term, expiring in September 2031.

The Company currently has Restricted Share Unit and Performance Share Unit equity-based compensation awards outstanding.

Dividend equivalents are generally accrued on restricted share units and performance share units outstanding as of the record date.

These dividend equivalents are paid only on restricted share units and performance share units that ultimately vest.

Generally, the requisite service period is the vesting period.

In the case of retirement (eligibility for which is based on the associate's age and years of service as provided in the relevant award agreement), awards vest in full but are subject to the satisfaction of any applicable performance criteria and paid in line with the original vesting date.

The maximum aggregate number of shares of the Company’s common stock that may be issued pursuant to awards under the Incentive Plan shall not exceed 11,000,000 shares.

Shares for which payment is in cash, including the shares withheld to cover associate payroll taxes, as well as shares that expire, terminate, or are canceled or forfeited, may be awarded or granted again under the Incentive Plan.

The Company reflects the cash settled awards under the Incentive Plan as a liability classified plan and, therefore, reports the accrued compensation expense and the value of the cash settled awards within other liabilities.

At December 31, 2024 and 2023, the Company had $ 139 million and $ 85 million accrued for future payments under the Incentive Plan, respectively.

Restricted Share Units ("RSUs")

JFI grants RSUs to certain associates and non-employee directors.

The majority of associate RSUs are expected to vest in three equal installments on the first through third anniversaries of the grant date over a 3-year service period, subject to forfeiture and transfer restrictions, and are payable in cash or shares at the Company’s discretion.

The associate awards granted in 2021 had a shortened, 30-month vesting period.

In addition, 1 - and 2-year awards were issued in connection with the Company’s Demerger.

RSUs have immediate dividend rights and voting rights upon issuance of underlying shares when the share units vest.

In lieu of cash dividend payments, the dividends on unvested RSUs are awarded in additional units equal to the value of the dividends and are subject to the same vesting and distribution conditions as the underlying RSU.

Outstanding non-vested RSUs granted to associates were as follows:

The majority of associate RSUs are expected to vest annually in three equal installments on the first through third anniversaries of the grant date, subject to forfeiture and transfer restrictions, and are payable in cash or shares at the Company’s discretion.

For senior vice presidents and above, the awards are distributed only in shares.

RSUs paid out in shares have immediate dividend rights and voting rights upon issuance of underlying shares when the share units vest.

In lieu of cash dividend payments, the dividend equivalents on unvested RSUs are awarded in additional share units equal to the value of the dividends and are subject to the same vesting and distribution terms as the underlying RSU.

Outstanding unvested RSUs granted to associates were as follows:

Year Ended December 31, 2025 Share-Settled Cash-Settled

RSUs Weighted-Average Grant Date Fair Value per Share RSUs Weighted-Average Grant Date Fair Value per Share

Non-vested at beginning of period

Unvested at beginning of period

558,991 $ 52.18 1,825,349 $ 51.44

2 unchanged sentences

( 6,741 ) $ 69.30 ( 21,643 ) $ 65.16

Non-vested at end of period

Unvested at end of period

454,158 $ 67.70 1,422,953 $ 66.14

(1) Includes dividend equivalents granted in the current period on awards outstanding

(1) Includes dividend equivalents units granted in the current period on awards outstanding

Year Ended December 31, 2024 Share-Settled Cash-Settled

RSUs Weighted-Average Grant Date Fair Value per Share RSUs Weighted-Average Grant Date Fair Value per Share

Nonvested at beginning of period 1,178,009 $ 30.38 2,156,773 $ 32.89

Unvested at beginning of period 604,577 $ 36.93 2,122,780 $ 36.85

311,851 $ 61.47 920,951 $ 61.62

1 unchanged sentence

Forfeited ( 14,252 ) $ 53.85 ( 46,221 ) $ 50.05

Nonvested at end of period 604,577 $ 36.93 2,122,780 $ 36.85

(1) Includes dividend equivalents granted in the current period on awards outstanding

Part II | Item 8.

Notes to Consolidated Financial Statements | 18.

Share-Based Compensation

Unvested at end of period 558,991 $ 52.18 1,825,349 $ 51.44

(1) Includes dividend equivalents units granted in the current period on awards outstanding

Performance Share Units ("PSUs")

JFI grants PSUs to certain associates.

PSU awards entitle recipients to receive, upon vesting, a number of units that ranges from 0 % to 200 % of the number of PSUs awarded, depending on the level of achievement of specified performance conditions.

PSU awards entitle recipients to receive, upon vesting, on a one -for-one basis, a number of shares ranging from 0 % to 200 % of the number of PSUs awarded, depending on the level of achievement of specified performance conditions.

For PSUs granted in 2025 and 2024, the awards also include a vesting modifier based on the Company's performance relative to a defined peer group.

The awards generally are expected to vest after a period of three years , subject to forfeiture and transfer restrictions, and are payable in cash or shares at the Company’s discretion;

and, for senior vice presidents and above, the awards are distributed only in shares.

The awards granted in 2021 had a shortened, 30-month vesting period.

Award recipients have immediate dividend rights and voting rights upon issuance of underlying shares when the share units vest.

The dividends on unvested PSUs are awarded in additional units equal to the value of the dividends and are subject to the same vesting and distribution conditions as the underlying PSUs.

Outstanding non-vested PSUs granted were as follows:

The awards generally are expected to cliff vest after a period of three years , subject to forfeiture and transfer restrictions, and are payable in cash or shares at the Company’s discretion.

For senior vice presidents and above, the awards are distributed only in shares.

PSU award recipients have immediate dividend rights and voting rights upon issuance of underlying shares when the share units vest.

The dividends on unvested PSUs are awarded in additional share units equal to the value of the dividends and are subject to the same vesting and distribution terms as the underlying PSUs.

Part II | Item 8.

Notes to Consolidated Financial Statements | 18.

Share-Based Compensation

Outstanding unvested PSUs granted were as follows:

Year Ended December 31, 2025 Share-Settled Cash-Settled

PSUs Weighted-Average Grant Date Fair Value per Share PSUs Weighted-Average Grant Date Fair Value per Share

Non-vested at beginning of period

Unvested at beginning of period

1,154,861 $ 48.55 395,163 $ 44.92

2 unchanged sentences

( 3,699 ) $ 73.04 ( 2,794 ) $ 50.80

Non-vested at end of period

Unvested at end of period

838,155 $ 60.64 188,834 $ 49.64

(1) Includes dividend equivalents granted in the current period on awards outstanding

(1) Includes dividend equivalent units granted in the current period on awards outstanding

Year Ended December 31, 2024 Share-Settled Cash-Settled

PSUs Weighted-Average Grant Date Fair Value per Share PSUs Weighted-Average Grant Date Fair Value per Share

Nonvested at beginning of period 4,075,330 $ 28.59 1,487,453 $ 28.73

Unvested at beginning of period 1,477,574 $ 35.59 687,751 $ 35.34

300,747 $ 62.98 16,747 $ 75.93

1 unchanged sentence

Forfeited ( 96,459 ) $ 34.35 ( 50,367 ) $ 34.15

Nonvested at end of period 1,477,574 $ 35.59 687,751 $ 35.34

(1) Includes dividend equivalents granted in the current period on awards outstanding

Unvested at end of period 1,154,861 $ 48.55 395,163 $ 44.92

(1) Includes dividend equivalent units granted in the current period on awards outstanding

Compensation Cost

JFI charges the fair value of the restricted share units and performance share units to expense over the requisite service period.

JFI charges the fair value of the RSUs and PSUs to expense over the requisite service period.

For performance-based awards, JFI estimates the number of shares expected to vest at the end of the performance period based on the probable achievement of the performance objectives.

2 unchanged sentences

For most of the equity-classified RSUs and PSUs, the fair value is based on the price of JFI’s common stock on the grant date.

For PSU equity awards granted in 2024 and 2023, the Company measures fair value using a Monte Carlo simulation that considers the Company’s projected total shareholder return (“TSR”) relative to a defined group of peers as well as other inputs to estimate the grant date fair value of awards.

For PSU equity awards granted in 2025 and 2024, the Company measures fair value using a Monte Carlo simulation that considers the Company’s projected total shareholder return (“TSR”) relative to a defined group of peers as well as other inputs to estimate the grant date fair value of the awards.

For liability-classified RSUs and most liability-classified PSUs, the fair value is based on the price of JFI’s common stock as of the reporting date.

For PSU liability awards granted in 2023, the Company uses a Monte Carlo simulation that considers the Company’s projected TSR relative to a defined group of peers as well as other inputs to estimate the grant date fair value of awards.

Part II | Item 8.

Notes to Consolidated Financial Statements | 18.

Share-Based Compensation

Total expense related to these share-based plans was as follows (in millions):

4 unchanged sentences

Unrecognized compensation cost for RSUs and PSUs under the Incentive Plan as of December 31, 2025 was $ 61 million with a weighted average recognition period of 1.01 years.

The shares issued under the Incentive Plan may be authorized and unissued, or reacquired treasury shares.

Other Related Party Transactions

The Company's investment management operation, PPM, provides investment services to entities affiliated with the Company's former parent.

As of June 30, 2023, the former parent had no remaining equity interest in the Company and therefore its affiliated entities are no longer designated as related parties.

The Company recognized $ 18 million and $ 33 million of revenue during the years ended December 31, 2023 and 2022, associated with these investment services.

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

The shares issued under the OIP may be authorized and unissued, or reacquired treasury shares.

Part II | Item 8.

Notes to Consolidated Financial Statements | 19.

Statutory Accounting and Regulatory Matters

The Company’s insurance subsidiaries are required to prepare statutory financial statements in accordance with statutory accounting practices prescribed or permitted by the insurance department of the state of domicile.

7 unchanged sentences

The Company’s consolidated assets are primarily those of its life insurance subsidiary, Jackson.

Under the Michigan Insurance Code of 1956, Jackson must notify the Michigan Director of Insurance prior to payment of any dividend.

Under the Michigan Insurance Code, Jackson must notify the Michigan Director of Insurance prior to payment of any dividend.

Ordinary dividends on capital stock are subject to a capacity calculation and may only be distributed out of earned surplus.

4 unchanged sentences

The Company’s insurance subsidiaries have received approval in the past for payments of extraordinary dividends.

Part II | Item 8.

Notes to Consolidated Financial Statements | 20.

Statutory Accounting and Regulatory Matters

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.

2 unchanged sentences

In subsequent quarters of 2024, Jackson paid cumulative extraordinary dividends of $ 830 million to Brooke Life.

In the first quarter of 2023, Jackson paid an ordinary dividend of $ 450 million and a return of capital of $ 150 million to Brooke Life.

Brooke Life paid cumulative returns of capital of $ 785 million in 2024 and an ordinary dividend of $ 360 million and a return of capital of $ 150 million in the first quarter of 2023 which were up streamed to its ultimate parent, Jackson Financial.

In connection with the formation of Hickory Re in 2025, Jackson Financial remitted a $ 150 million capital contribution which was down streamed to its subsidiary, Hickory Re.

Brooke Life paid cumulative returns of capital of $ 1,025 million and $ 785 million in 2025 and 2024, which were up streamed to its ultimate parent, Jackson Financial.

The NAIC has developed certain risk-based capital (“RBC”) requirements for life insurance companies.

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A usual range of results for each ratio is used as a benchmark and departure from the usual range on four or more of the ratios can lead to inquiries from individual state insurance departments.

In 2024 and 2023, there were no significant exceptions with any ratios.

In 2025 and 2024, there were no significant exceptions to any ratios.

Part II | Item 8.

Notes to Consolidated Financial Statements | 20.

Benefit Plans

Jackson has a defined contribution retirement plan covering substantially all associates and certain affiliates.

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The expense (income) related to these plans, including a match of elective deferrals for the agents’ deferred compensation plan and the change in value of participant elective deferrals, was $ 23 million, $ 48 million, and $ 58 million in 2025, 2024 and 2023, respectively.

Operating Costs and Other Expenses

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General and administrative expenses (1)

1,067 1,120 1,007

Deferral of acquisition costs ( 876 ) ( 686 ) ( 511 )

Total operating costs and other expenses $ 2,797 $ 2,825 $ 2,549

(1) Includes gains (losses) on derivative instruments economically hedging liabilities related to the non-qualified voluntary deferred compensation plan beginning in the third quarter 2025.

Part II | Item 8.

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Reclassified from AOCI Affected Line Item in the

Consolidated Income Statement

Consolidated Income Statements

Years Ended December 31,

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After underwriting discounts and expenses, we received net proceeds of approximately $ 533 million.

The Series A Preferred Stock carries i) an initial dividend rate of 8.000 % per annum to but excluding, March 30, 2028;

The Series A Preferred Stock carries a dividend rate equal to i) from issuance to but excluding March 30, 2028, 8.000 % per annum;

and ii) from, and including, March 30, 2028, during each reset period, at a rate per annum equal to the Five-year U.S.

12 unchanged sentences

Quarter Ended

03/31/2025 February 17, 2025 March 11, 2025 March 31, 2025 $ 500 $ 0.50

06/30/2025 May 2, 2025 June 12, 2025 June 30, 2025 $ 500 $ 0.50

09/30/2025 August 1, 2025 September 15, 2025 September 30, 2025 $ 500 $ 0.50

12/31/2025 October 30, 2025 December 4, 2025 December 30, 2025 $ 500 $ 0.50

Quarter Ended

03/31/2024 February 20, 2024 March 12, 2024 April 1, 2024 $ 500 $ 0.50

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12/31/2024 November 1, 2024 December 5, 2024 December 30, 2024 $ 500 $ 0.50

Quarter Ended

06/30/2023 May 8, 2023 June 1, 2023 June 30, 2023 $ 594.44 $ 0.59444

09/30/2023 August 7, 2023 August 31, 2023 October 2, 2023 $ 500.00 $ 0.50000

12/31/2023 November 6, 2023 November 30, 2023 January 2, 2024 $ 500.00 $ 0.50000

At December 31, 2025 and 2024, the Company was authorized to issue up to 1 billion shares of common stock with a par value of $ 0.01 per share.

1 unchanged sentence

Notes to Consolidated Financial Statements | 23.

TPG Transaction

On February 11, 2026, Jackson Financial and TPG completed the transaction announced on January 6, 2026, resulting in TPG acquiring a $ 500 million equity stake in Jackson Financial.

See Note 25 – Subsequent Events for more information.

Share Repurchase Program

On February 27, 2023 and August 1, 2024, our Board of Directors authorized increases of $ 450 million and $ 750 million, respectively, in our existing authorization to repurchase shares of our outstanding common stock as part of the Company's share repurchase program.

On September 18, 2025, our Board of Directors authorized an increase of $ 1 billion in our existing authorization to repurchase shares of our outstanding common stock as part of the Company's share repurchase program.

As of February 18, 2026, the Company had remaining authorization to purchase $ 903 million of its common shares.

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The following table presents changes in the number of shares of common stock outstanding:

Common Stock Treasury Stock Total Common Stock Outstanding

Common Stock Issued Treasury Stock Total Common Stock Outstanding

Shares at December 31, 2023 94,481,006 ( 15,820,785 ) 78,660,221

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09/30/2025 August 1, 2025 September 15, 2025 September 25, 2025 $ 0.80

12/31/2024 November 1, 2024 December 5, 2024 December 19, 2024 $ 0.70

12/31/2025 October 30, 2025 December 4, 2025 December 18, 2025 $ 0.80

Quarter Ended

1 unchanged sentence

06/30/2024 May 2, 2024 June 6, 2024 June 20, 2024 $ 0.70

09/30/2023 August 7, 2023 August 31, 2023 September 14, 2023 $ 0.62

12/31/2023 November 6, 2023 November 30, 2023 December 14, 2023 $ 0.62

09/30/2024 August 1, 2024 September 5, 2024 September 19, 2024 $ 0.70

12/31/2024 November 1, 2024 December 5, 2024 December 19, 2024 $ 0.70

Quarter Ended

1 unchanged sentence

06/30/2023 May 8, 2023 June 1, 2023 June 15, 2023 $ 0.62

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

12/31/2022 November 7, 2022 December 1, 2022 December 15, 2022 $ 0.55

Dividend equivalents are generally accrued on restricted share units and performance share units outstanding as of the record date.

Dividend equivalents on restricted share units and performance share units that are ultimately payable in cash are recognized as compensation expense while those that are ultimately payable in shares are recognized as dividends.

09/30/2023 August 7, 2023 August 31, 2023 September 14, 2023 $ 0.62

12/31/2023 November 6, 2023 November 30, 2023 December 14, 2023 $ 0.62

Dividend equivalents are generally accrued on RSUs and PSUs outstanding as of the record date.

Dividend equivalents on RSUs and PSUs that are paid out in cash are recognized as compensation expense while those that are distributed in shares are recognized as dividends.

Earnings Per Share

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The Company grants share-based awards subject to vesting provisions of the 2021 Omnibus Incentive Plan, which can have a dilutive effect.

See Note 18 - Share-Based Compensation of the Notes to Consolidated Financial Statements for further description of our share-based awards.

See Note 18 - Share-Based Compensation of these Notes to Consolidated Financial Statements for further description of our share-based awards.

Part II | Item 8.

20 unchanged sentences

On February 16, 2026, our Board of Directors approved a first quarter cash dividend on JFI's common stock, $ 0.90 per common share, payable on March 26, 2026, to shareholders of record on March 16, 2026.

The Company also declared a cash dividend of $ 0.50 per depositary share (the "Depositary Shares"), each representing a 1/1,000th interest in a share of Fixed-Rate Reset Noncumulative Perpetual Preferred Stock, Series A.

The Company also declared a cash dividend of $ 0.50 per depositary share, each representing a 1/1,000th interest in a share of Fixed-Rate Reset Noncumulative Perpetual Preferred Stock, Series A.

The dividend will be payable on March 30, 2026, to depositary shares shareholders of record at the close of business on March 16, 2026.

Long-term Strategic Partnership with TPG

On January 6, 2026, Jackson announced that it entered a long-term strategic partnership with TPG, combining the strength of Jackson’s annuity product expertise and broad distribution network with TPG’s private credit platform.

The partnership aims to expand Jackson’s spread-based product sales.

The transaction closed on February 11, 2026.

At the closing, subsidiaries and affiliates of Jackson Financial and TPG entered into a non-exclusive investment management arrangements with a 10 -year initial term with automatic 1 -year renewals through year 15 , with TPG providing Investment Grade Asset Based Finance and Direct Lending investment capabilities to complement the asset management capabilities of PPM America, Inc.

("PPM"), a Jackson subsidiary.

Under the agreement, PPM will continue to manage the majority of Jackson’s general account and both Jackson and PPM will retain oversight of Jackson’s investment portfolio.

TPG acquired a $ 500 million equity stake in Jackson Financial consisting of 4,715,554 shares of Jackson Financial common stock, representing an approximately 6.5 % common equity stake.

Additionally, TPG issued to a wholly owned, indirect subsidiary of Jackson $ 150 million in TPG common shares, equating to 2,279,109 shares of its common stock.

Under the terms of the transaction, TPG and Jackson have agreed to certain limitations on their ability to divest their respective ownership stakes over time.

Jackson Financial Inc.

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(In millions, except share data)

Debt securities, available-for-sale (amortized cost:

Other invested assets 11 —

Investment in subsidiaries 8,975 8,756

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22,000 shares issued and outstanding at December 31, 2025 and December 31, 2024;

liquidation preference $ 25,000 per share (See Note 24 to Consolidated Financial Statements)

liquidation preference $ 25,000 per share (See Note 23 - Equity to Consolidated Financial Statements)

Common stock;

1,000,000,000 shares authorized, $ 0.01 par value per share and 73,380,643 and 78,660,221 shares issued and outstanding at December 31, 2024 and December 31, 2023, respectively (See Note 24 to Consolidated Financial Statements)

1,000,000,000 shares authorized, $ 0.01 par value per share and 66,825,632 and 73,380,643 shares issued and outstanding at December 31, 2025 and December 31, 2024, respectively (See Note 23 - Equity to Consolidated Financial Statements)

Additional paid-in capital 6,063 6,046

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Cash flows from financing activities:

Proceeds from debt — — 750

Payments on debt — — ( 598 )

Debt issuance costs — — ( 7 )

Capital distribution from subsidiary 1,025 785 150

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Issuance of preferred stock — — 533

Other financing activities 41 — —

Net cash provided by (used in) financing activities ( 25 ) 63 ( 472 )

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Total $ 147 $ 2,854 $ 1,145 $ 1,152 $ 2,549

(1) See Note 3- Segment Information for further details on the non-operating items.

(1) See Note 3- Segment Information to our Consolidated Financial Statements for further details on the non-operating items.

See the accompanying Report of Independent Registered Public Accounting Firm

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(1) Represents reductions for securities disposed.

(2) Represents provision (release) of allowance for write-offs.

(2) Represents provision (release) of allowance for write-offs and reductions for mortgages disposed.

(3) Includes increase (decrease) of $( 248 ) million and $ 46 million valuation allowance during the years ended December 31, 2025 and 2024, respectively, associated with the unrealized tax losses in the companies' available for sale securities portfolio, see Note 15.

Income Taxes for further information.

Income Taxes of the Notes to Consolidated Financial Statements for further information.

See the accompanying Report of Independent Registered Public Accounting Firm

3 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.

What changed 10-K

Item 8. Financial Statements and Supplementary Data