Jackson Financial Inc.

Good morning everyone and welcome to the Jackson Financial Incorporated third quarter 2023 earnings call. All lines have been placed on mute during the presentation portion of the call with an opportunity for question and answer at the end. If you would like to ask a question, please press start followed by one on your telephone keypad. I would now like to turn a conference call over to our host, Liz Warner, head of investor relations. Please go ahead.

Good morning everyone and welcome to Jackson's third quarter earnings call. Today's remarks may contain forward-looking statements which are subject to risks and uncertainties. These statements are not guarantees of future performance or events and are based upon management's current expectations. Jackson's filings with the SEC provide details on important factors that may cause actual results or events to differ materially. Except as required by law, Jackson is under no obligation to update any forward-looking statements if circumstances or management's estimates or opinions should change. Today's remarks may also contain certain non-GAAP financial measures. The reconciliation of those measures to the most comparable U.S. GAAP figures is included in our earnings release, financial supplement, and earnings presentation, all of which are available on the Investor Relations page of our website at investors.jackson.com. Joining us today are our CEO, Laura Prescorn, our CFO, Marcia Watson, our Head of Asset Liability Management and Chief Actuary, Steve Ben-Yuris, our President of Jackson National Life Distributors, Scott Romine, and President and Chief Investment Officer of PPM, Craig Smith. At this time, I'll turn the call over to our CEO, Laura Prescorn.

Thank you, Liz. Good morning, everyone, and welcome to our third quarter 2023 earnings call. In today's call, we'll provide an update on our strong capital position, our product and distribution initiatives, and our solid third quarter operating results. In our two years as an independent public company, we have consistently delivered on our commitments to shareholders. We continue to build on this momentum in the third quarter with total capital return to shareholders exceeding $120 million through share repurchases and common dividends and ending the quarter with an RBC above our target range. As we enter the fourth quarter, we look forward to furthering our track record of execution by achieving our 2023 financial targets. Since our separation in September of 2021, Jackson's cumulative capital return has surpassed $1 billion in combined shareholder dividends and share buybacks. We have repurchased common shares for eight consecutive quarters. As of the end of the third quarter, our cumulative share repurchases represent 19% of our common shares outstanding at the time of separation. We view dividends as an important component of sustained return to shareholders and paid our first dividend within four months of becoming an independent public company. Alongside this morning's earnings release, we are pleased to also announce our board's approval for a fourth quarter common dividend of 62 cents per share. Maintaining a strong capital position at Jackson and its operating companies is a priority for Jackson's leadership. We ended the third quarter with an estimated RBC ratio above our target range of 425 to 500% and our total adjusted statutory capital increased to $4.5 billion. We have consistently reported estimated RBC within or above our target range and consistently above rating agency requirements each quarter since separation. Our capital flexibility is further supported by liquidity at the holding company level, which was nearly $1.4 billion in liquid assets, taking into account the cash proceeds from the sale of limited partnership assets in October. We announced our plans to sell these assets last quarter, and the sale was successfully completed last month. As previously stated, we are retiring $600 million in senior debt later this month and will enter 2024 with a strong level of liquidity within the holding company. At the end of the third quarter, year-to-date capital return totaled nearly $350 million. When combined with our fourth quarter dividend and expected share repurchases, This total offers us confidence in our ability to achieve our 2023 return target of $450 to $550 million. Our remaining share repurchase authorization of approximately $360 million provides flexibility for continued execution. As discussed earlier this year, statutory reserving and capital requirements are subject to flooring at the cash surrender value, or CSV, which has led to volatility in our statutory results. We remain highly engaged with regulators to deliver a CSV4 solution to better represent the economic value of our business. We have had positive engagement with our regulators over the past few months and are targeting early 2024 for a CSV4 solution. While the specific timing is difficult to predict, Our work is in pursuit of a comprehensive and enduring solution that recognizes the financial strength of Jackson and positions us for greater RBC stability. We look forward to providing a more detailed update in the coming months. Turning to our third quarter results, net income totaled $2.8 billion, primarily due to the gain on market risk benefits resulting from higher interest rates. Adjusted operating earnings were $3.80 per share, an increase from the second quarter of 2023 due to fee income growth and lower corporate expense. Retail annuity sales increased 6% from the second quarter of 2023 to $3.3 billion, driven by continued momentum in RILA sales. Variable annuity sales and net flows were consistent with market trends and the expected aging of our in-force book. Positive fund performance has resulted in a 3% increase in variable annuity account values for the year, which more than offsets the impact of net outflows. Like prior quarters, our fixed and fixed index annuity sales remained relatively modest as pricing reflects our prudent investment approach. Our ability to meet the needs of advisors and their clients positions Jackson well for further growth and diversification through our product offerings and expertise. Our enhanced Ryla product has been embraced by the market with sales exceeding 800 million in the third quarter and reaching record sales levels in the month of September. In less than two years, we've reached an annualized sales run rate of over $3 billion and 26% of our Ryla producers were either new or reactivated producers. Our enhanced Ryla product and focus on digital marketing have made for a powerful combination in the market. Our innovative Ryla digital experience ensures that financial professionals can more easily educate their clients on the benefits of a Ryla and how it fits into their specific goals for growth and protection with flexibility. The tool was built to be intuitive, simple, and action-oriented, and to allow for customized experiences in which financial professionals and clients are able to model various scenarios to better understand outcomes. Designing this unique interface resulted in significantly increased year-over-year engagement on our website, Jackson.com. More than one-third of our sales came from producers utilizing our RILA digital experience, clearly demonstrating that financial professionals are relying on our industry-leading technology to provide clients with better information and service. In late August, we refined our Perspective 2 flagship variable annuity benefit suite with the goal to simplify and customize the consumer experience. Perspective 2 offers a streamlined menu of benefit options that enables financial professionals and their clients to easily navigate living benefit alternatives while maintaining focus on asset growth and protection. Over time, as traditional pension plans have phased out, annuities are filling the gap, helping retirees to create their own stream of guaranteed lifetime income. When proposed regulations may limit a retirement investor's access to annuities or worsen the retirement savings gap Americans are experiencing, we engage with regulators, agencies, and legislators to advocate for fair regulations that do not impede a retirement investor's access to valuable retirement solutions. The Department of Labor's latest fiduciary proposal was just released, and we are still reviewing the proposal. Our initial reaction is that the DOL may not have fully considered the regulations developed by the National Association of Insurance Commissioners and the safeguards these rules provide to retirement investors. We will continue to work with our trade associations to better understand how the proposed rule will impact Americans saving for retirement. Jackson is fully accustomed to operating in the highly regulated industry and has a track record of successfully adapting to new and updated regulations. If the rule becomes effective, Jackson will work through our change management process to implement the final requirements. Overall, I remain pleased with our momentum towards our strategic and operational goals during the third quarter. We look forward to achieving our 2023 key financial targets and continuing to deliver long-term value to our shareholders, distribution partners, and policyholders. I'll now turn it over to Marcia to review our financials for the quarter in greater detail.