Jackson Financial Inc.

Hello, everyone, and welcome to the Jackson Financial Inc. 4Q25 earnings call. My name is Charlie, and I'll be coordinating the call today. You will have the opportunity to ask a question at the end of the presentation. If you'd like to register a question, please press star, followed by one on your telephone keypad. I'll now hand over to our host, Liz Werner, head of investor relations. Again, Liz, please go ahead.

Good morning, everyone, and welcome to Jackson's 2025 fourth quarter and full year 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 provides 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 also refer to 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. Presenting on today's call are Jackson CEO Laura Prescorn and CFO Don Cummings. Joining us in the room are our President of Jackson National Life Insurance Company, Chris Robb, our Head of Asset Liability Management, Brian Walta, our Chief Actuary, Lynn Soon, and our Treasurer and Head of Corporate Development, Dean Scott. At this time, I'll turn the call over to our CEO, Laura Preeskorn.

Thank you, Liz. Good morning, and thank you for joining our 2025 fourth quarter in full year earnings call. I'll begin with a review of our recently announced strategic actions, followed by a discussion of our 2025 accomplishments, our progress since separation, and our 2026 financial targets. 2025 was an exceptional year as we surpassed our financial targets and set records for sales and distribution. We delivered another year of over $1 billion in free capital generation and grew free cash flow while providing initial funding for our new captive reinsurer, Hickory Re. Following my remarks, our CFO, Don Cummings, will discuss our financial performance in further detail. Beginning on slide three, Jackson's execution focus and core capabilities have been steadfast and are evident in both our success as a leading provider of retirement solutions and our performance as a public company. As an important next step in Jackson's growth, we recently closed on our previously announced strategic partnership agreement with TPG. This long term partnership will support accelerated growth of our spread based business and future flexibility. TPG's unique investment capabilities and collaborative culture align well with Jackson and our teams have already been working closely together. Our partnership with TPG, combined with the capital efficiency from our captive strategy, positions us well for fixed and fixed index annuity sales momentum. Turning to slide four, our strong full-year operating results drove nearly 12% growth in our adjusted operating earnings supported by stable fee income and increased investment spread earnings. Our commitment to shareholder capital return and the benefit of share repurchases resulted in over 20% growth in adjusted operating earnings per share for the full year. As a reminder, our net income includes the impact of our annual assumption review and net hedge results, which Don will discuss. Over the course of 2025, our sustained profitability and disciplined capital management resulted in well over $800 million in free cash flow and capital return. Importantly, we expect to maintain our balanced approach to capital management, focusing on financial strength, future growth, and capital return to shareholders. We achieved the highest quarterly and annual retail annuity sales since going public in the fourth quarter and full year 2025. Continued growth in RILA combined with accelerated growth in our recently introduced fixed index annuity have deepened our distribution relationships and diversified our business. For the full year, retail annuity sales of nearly $20 billion are at their highest level since 2019, and net flows improved for the quarter and full year. While the strong equity market continues to impact net flows in our Healthy Variable Annuity book, our RILA and FIA sales are an increasing offset to VA lapses. These strong sales and a favorable market contributed to the 7 percent increase in total retail annuity account values to $269 billion at 2025 year end. Turning to slide five, We exceeded all our 2025 financial targets, surpassing the high end of our capital return target range with over $860 million return to common shareholders. We also ended the year with over $650 million in holding company liquidity and an RBC ratio of 567%. Free capital generation was over $1 billion for the second year in a row. As a result, we distributed over $1 billion from our operating company, Jackson National Life, to our holding company, a 27% increase from 2024. We expect our strong capital generation to both support growth and continued capital return, and we have established a new financial target for free capital generation, reflecting our view of future profitability. Our accomplishments last year are significant not only on a single year basis, but also as they reflect Jackson's continued progress over more than four years. Slide six highlights the significant growth in capital returns since separation due to our strong cash flows and prudent capital management. Beginning in 2021, when we launched as a public company and each subsequent year, Jackson increased its common shareholder dividend and raised its targets for capital return to common shareholders. During this time, we managed through periods of external market volatility and formed the captive, Brook Re, that allows for more economic hedging and has significantly improved capital stability. Furthermore, Jackson's commitment to investing in our business supports our continued track record of capital returns. Turning to slide seven, our ongoing product innovation has resulted in sales growth and greater business diversification. This year was no exception, and we saw the benefits from our second quarter launch of Jackson's MarketLink Pro 3 and MarketLink Pro Advisory 3, which we refer to as RILA 3.0. In the fourth quarter, RILA sales set a record at nearly $2.3 billion And for the 2025 full year, RILA sales rose 22%. RILA account value at 2025 year end was $20 billion, a 14% increase from third quarter 2025 and a 74% increase from 2024. We expect RILA to remain a valuable offering for our advisors and their clients and RILA 3.0 offers a broad range of index and crediting options along with valuable protection benefits. In addition to RILA, our recently launched fixed index annuity, Jackson Income Assurance, was a significant contributor to fourth quarter sales. And looking ahead, we expect this offering to provide further diversification in our new business mix. Importantly, RILA and FIA have broadened our distribution reach resulting in expanded broker-dealer partnerships and deeper relationships with advisors selling multiple Jackson product lines. We also see momentum in the fee-based advisory business, where 2025 sales reached a record $1.5 billion. The growth was broad-based as our investment-only variable annuity, Elite Access, and our RILA offering accounted for over two-thirds of advisory sales. while our traditional variable annuity accounted for nearly all of the remainder. Jackson's expanding annuity product portfolio allows advisors to best meet their clients' individual retirement planning goals. In our fifth year as an independent public company, we are well positioned with a more diverse product suite and broader distribution than at separation. Turning to slide eight, as we look ahead to 2026, we expect our partnership with TPG and our captive strategy will contribute to stronger and more stable capital generation. As a result, we believe free capital generation will reach or exceed $1.2 billion given our healthy book of business and outlook for profitable growth. We are also raising our capital return targets for the fifth time setting a 2026 target of $900 million to $1.1 billion, a 16% increase from our 2025 actual capital return of $862 million. Jackson's free capital generation provides greater visibility into potential free cash flow and sustainable capital return to shareholders. To that end, Our board approved our fifth increase in our quarterly dividend to 90 cents per share, a nearly 13% increase over our prior quarterly dividend. We believe Jackson's approach to capital management, balancing investment in our business, maintaining financial strength, and returning capital to shareholders will continue to serve all stakeholders. At this time, I'll turn the call over to Don.