Jackson Financial Inc.

hello and welcome to the jackson financial inc third quarter 2022 earnings call my name is alex i'll be coordinating the call today if you'd like to ask a question at the end of the presentation you can press star 1 on your telephone keypad if you'd like to draw your question you may press star 2. i'll now hand over to your host liz weiner head of investor relations liz please go ahead good morning everyone before we begin we remind you that today's presentation may include forward-looking statements

which are not guarantees of future performance or outcomes. A number of important factors, including risks, uncertainties, and assumptions, discussed in Risk Factors and Management's Discussion and Analysis of Financial Condition in the company's 2021 Form 10-K and 2022 Second Quarter 10-Q could cause actual results to differ materially from those reflected in the forward-looking statements. In this presentation, management will refer to certain non-GAAP measures which management believes provide useful information in measuring the financial performance of the business. A reconciliation of non-GAAP financial measures to the most comparable GAAP measures is contained in the appendix to the presentation. With us today are Jackson CEO, Laura Prescorn, our CFO, Marcia Wadston, our Vice Chair, Chad Myers, the President of Jackson National Life Distributors, Scott Romine, our Head of ALM and Chief Actuary, Steve Ben-Yorris, and the President and CEO of PPM, Craig Smith. At this time, I'll turn the call over to Laura. Thank you, Liz.

Good morning, and welcome to our third quarter earnings call. Today, we will discuss our results, our continued capital return to shareholders, and our recent sales and distribution initiatives. Overall, our third quarter results continue to demonstrate Jackson's resiliency through periods of market stress. Through the first nine months of the year, we navigated ongoing volatility across markets and a decline in the broader equity markets of approximately 25%, building on our track record of effective risk management and operating profitability. Looking toward the end of the year, we remain confident in delivering on our 2022 capital return targets and in the long-term profitability of the business. Net income for the third quarter of 2022 was $1.5 billion, driven largely by the positive impact of rising interest rates. This contributed to growth in book value. It also further reduced our financial leverage, which remained well below our target range of 20 to 25% over the past two quarters. For the nine-month period, net income was $6.4 billion and adjusted book value reached $12.4 billion. We reported solid underlying operating results this quarter. Pre-tax adjusted operating earnings, excluding notable items, were $480 million. This is in line with the second quarter, despite market pressure on annuity account values. Jackson's operating efficiency remains a key contributor to profitability and reflects our culture of expense discipline. During the third quarter, our discipline risk management approach and our healthy in-force book drove solid capital generation at our operating company. As anticipated, rising interest rates were a benefit and our operating RBC increased significantly from the second quarter of 2022. The value of our hedging strategy is even more visible in volatile market environments, preserving the economics of our book as well as statutory capital. We remain balanced in our approach to capital management, maintaining a strong capital position and investing in our business while deliberately and consistently returning capital to shareholders. We're well positioned to meet our financial targets for 2022. Through the first nine months of the year, we've returned approximately $400 million to shareholders through dividends and share repurchases. Our long-term confidence and the sustainability of our capital generation is reflected in our quarterly shareholder dividend, which will be 55 cents per share for the fourth quarter. We view our dividend as a differentiator and an important component of our capital return strategy. Market volatility has also impacted the dynamics of annuity activity. Excluding the business reinsured to Athene, our annuity net flows for the third quarter were flat as variable annuity net outflows were largely offset by the combined positive flows on RILA, fixed annuities, and fixed indexed annuities. Net flows were positive for the first nine months of the year at $400 million. Our third quarter RILA sales were $562 million, up from $490 million in the second quarter. Jackson continues to see RILA contributing to new and reengaged advisor relationships. As we mentioned last quarter, Jackson is well positioned during this period of market uncertainty thanks to our mix of retirement product solutions and award-winning service. We recently took pricing actions across our full annuity product spectrum as a result of rising interest rates and Jackson's focus on providing consumer value. We seek to provide flexibility in the solutions we structure for our policyholders with a prudent approach to pricing and product design. This approach has served us well over the long term, leading to an overall sustainable value proposition for our policyholders and a healthy, profitable book of business for our shareholders. Our product and channel diversification provides solutions that serve advisors and their clients through a range of market conditions. Jackson's variable annuity sales of $2.9 billion represent a quarterly decline that is consistent with industry trends. we remain committed to traditional variable annuities as a valuable consumer option that provides choice and customization. Our fixed and fixed index annuity sales are growing while continuing to reflect our pricing discipline. With our launch last October, our RILA product adds to the array of product offerings that address the needs of consumers. In October, we announced our growing distribution relationship with Halo, a technology platform serving the Registered Investment Advisor or RIA market. After a successful first year of offering fee-based FIA and RILA through HALO, we expanded RIA access to retirement solutions by adding variable annuities to the HALO platform. RIAs remain an underserved channel and annuities provide a long-term retirement income and savings solution that can complement existing portfolios. Beyond our initiatives to develop differentiated products and expand distribution, we are actively engaged with our peers and industry trade groups to support legislation like the RILA Act and Secure 2.0 to increase access to valuable retirement solutions for all Americans. Jackson's role as an industry leader is consistent with our long-term commitment to the market. Annuities are our primary business, and our strong culture of execution has positioned us well for navigating future change and evolving markets. As I mentioned earlier, we are confident in comfortably reaching our 2022 financial targets. We expect to be at or above the midpoint of the targeted capital return range and maintain one of the lowest levels of financial leverage among our peers. Our holding company cash position was nearly $800 million at the end of the quarter, and we are above our 500 to 525% targeted range for adjusted RBC under normal market conditions. In October, our commitment to maintaining a strong capital position was recognized by AMBEST when they changed Jackson's long-term issuer credit rating outlook from stable to positive. At this time, I'll turn the call over to Marcia to review our financial results in more detail.