Jackson Financial Inc.

Good day everyone. Welcome to the Jackson Financial's second quarter 2026 earnings conference call. All participants will be in listen-only mode until the question and answer session begins. Following the presentation, we will conduct a question and answer session. This call is being recorded. If you have any objections, please disconnect at this time. I would now like to turn the call over to Liz Werner, Head of Investor Relations. Please go ahead.

Good morning everyone and welcome to Jackson's 2026 second 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. 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. 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 Prieskorn and CFO Don Cummings. Joining us in the room are our President of PPM America, our Investment Management Subsidiary, Chris Raub, our Head of Planning and Asset Liability Management, Brian Walta, and our Head of Distribution of Jackson National Life Distributors, Allison Reed. At this time, I'll turn the call over to our CEO, Laura Prieskorn.

Thank you, Liz. Good morning, everyone. I appreciate you joining us for Jackson Financial's second quarter 2026 earnings call. I'll start by highlighting the quarter's strong operating results, continued capital generation, and a robust free cash flow. Following my remarks, Don Cummings, our CFO, will discuss our financial results in greater detail. Lastly, Prior to Q&A, I'll share comments on our upcoming executive management transitions we recently announced and my confidence in the leadership guiding Jackson forward. Beginning at a high level, our performance in the first half of 2026 positions Jackson to achieve our financial targets for the year and sets a foundation for anticipated long-term profitability. Turning to the financial metrics on slide 3, in the second quarter, operating earnings benefited from strong fee income and significant spread-based income growth. We reached a new quarterly record for adjusted operating earnings of $7.30 per diluted share. The combined total account value for retail annuities and institutional exceeded $295 billion, representing a 10% increase from the prior quarter, and included a greater percentage of spread-based account growth. In addition, through the first half of the year, our adjusted operating earnings grew more than 20%. We expect our sizable, healthy, in-force business, our increasing diversification, and our continued sales momentum to provide sustainable earnings and cash flows for the foreseeable future. Jackson's growth is supported by a strong capital position and continued capital generation. At the end of the quarter, total adjusted capital was $5.8 billion, up nearly 9% from the second quarter a year ago. Despite the strong growth in new business, our ability to generate free cash flow and return capital to shareholders has continued to improve. For the first half of 2026, free cash flow was $575 million, a 14% increase from last year. During this same time, we returned $547 million to shareholders in the form of common shareholder dividends and share repurchases. We remain focused on our balanced approach to capital management that has allowed us to maintain financial strength while supporting new business and capital return. Turning to retail annuity sales, we saw sales accelerate in the second quarter and approach $6 billion, a 34% increase from a year ago. Importantly, sales across all our products were up from the first quarter as well as from the second quarter a year ago. We remain an industry leader with more than $26 billion in RILA assets and $2.3 billion in second quarter RILA sales. This was a record sales quarter and the fourth consecutive quarter of more than $2 billion in Ryla sales. We anticipate continued Ryla sales growth resulting from our June launch of MarketLink Pro 4 and MarketLink Pro Advisory 4. This latest addition to our Ryla product suite is the first in the industry to reflect a Dow Jones Industrial Average Index option. We believe these enhancements provide valued options for our advisors and their clients and add to Ryla's attractive product features of growth potential with downside protection. Further adding to our spread-based business and diversification are fixed and fixed index annuity products whose account values increased 28% to $6.3 billion in the first half of 2026. Our income-focused FIA product, Jackson Income Assurance, delivered another quarter of solid sales, bringing FIA sales for the first six months to $1.3 billion. Our FIA offers a highly valued income benefit that allows advisors to offer an income protection solution that their clients can depend upon. Looking forward, we expect the combination of our investment expertise at PPM and our TPG investment partnership will continue to support Jackson's ability to offer competitive, spread-based products. Our partnership with TPG and the collaboration with PPM have already produced attractive new investment opportunities and enhanced investment yields. Importantly, we saw total retail annuity net outflows decline for the second quarter in a row and improved by 20% through the first half of the year compared to the prior year period. While the strong equity market drove variable annuity surrenders this quarter, increasing net inflows for RILA, fixed annuities, and fixed index annuities all contributed to the quarter's improving net flow trend. We anticipate that policyholders with mature variable annuities will continue to take advantage of the high growth in their funds and their valued benefits and believe the impact on total net flows should recede over time. Our broader range of annuity products continue to drive growth by expanding distribution and increasing the use of annuities in client portfolios. During the quarter, more advisors sold multiple products, helping build stronger distribution relationships. We also remain a leader in the advisory channel where RILA, FIA, and Elite Access, our investment-only variable annuity, made up nearly 80% of first half advisory annuity sales. This reflects the strength of our product diversification strategy. In addition, our RILA offerings continue to expand our distribution network. Since 2025, we've added nearly 1,500 new advisors and reactivated 2,300 advisors who had not recently sold a Jackson product. Our recently launched FIA product is also helping grow our distribution footprint. Approximately 60% of the producers selling this product are either new or reactivated Jackson producers. In addition to our innovative annuity products, we offer advisors a solutions-based approach supported by advanced digital capabilities and ongoing industry-leading service. Jackson was recently named Investment News 2026 Annuity Provider of the Year. This award illustrates the strength of the organization, the trusted relationships we've built with our distribution partners, and the dedication of our associates, whose hard work helps drive meaningful outcomes for the customers we serve every day. Jackson has a long history of supporting our distribution partners and advisors as they help their clients reach their retirement goals. We are proud of this recognition and remain focused on our mission of helping Americans secure their financial futures. Turning to slide 4, the shift in our business mix since separation highlights the diversification benefit resulting from Jackson's broad product portfolio. We ended the quarter with nearly 40% of our in-force book comprised of spread-based and investment-only variable annuities reflecting the growth across all our products this quarter. Jackson's focus remains clear, and we continue to drive growth through product innovation and an expanded distribution reach, which we believe leads to sales diversification and a more balanced, enforced book of business. Turning to slide five and looking ahead to the full year, as I said earlier, we are pleased with our first half accomplishments and the momentum we have built going into the second half of the year. We remain confident in our ability to achieve our free capital generation target of $1.2 billion and deliver on our capital return to common shareholders target of $900 million to $1.1 billion. In addition, our holding company liquidity is well above our minimum buffer, excluding the recent proceeds from our senior debt issuance. Importantly, we believe Jackson's market presence, operating strength, and capital position provide the foundation for long-term value creation. At this time, I'll turn the call over to Don.