Segment Information (Tables)

6 Months Ended

Jun. 30, 2024

Certain Information with Respect to Segments

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


Three Months Ended June 30, 2024	Retail Annuities		Institutional Products		Closed Life and Annuity Blocks		Corporate and Other		Total Consolidated
Operating Revenues
Fee income	$	1,102	$	—	$	112	$	12	$	1,226
Premiums	12		—		28		—		40
Net investment income	166		118		168		(1)		451

Other income	9		—		7		(6)		10
Total Operating Revenues	1,289		118		315		5		1,727

Operating Benefits and Expenses
Death, other policy benefits and change in policy reserves, net of deferrals	9		—		144		—		153
(Gain) loss from updating future policy benefits cash flow assumptions, net	(15)		—		(2)		—		(17)
Interest credited on other contract holder funds, net of deferrals and amortization	84		88		101		—		273
Interest expense	6		—		—		20		26
Operating costs and other expenses, net of deferrals	601		1		35		41		678
Amortization of deferred acquisition costs	139		—		2		—		141
Total Operating Benefits and Expenses	824		89		280		61		1,254

Pretax Adjusted Operating Earnings	$	465	$	29	$	35	$	(56)	$	473


Three Months Ended June 30, 2023	Retail Annuities		Institutional Products		Closed Life and Annuity Blocks		Corporate and Other		Total Consolidated
Operating Revenues
Fee income	$	1,002	$	—	$	116	$	13	$	1,131
Premiums	6		—		49		—		55
Net investment income	92		102		161		7		362

Other income	10		—		6		3		19
Total Operating Revenues	1,110		102		332		23		1,567

Operating Benefits and Expenses
Death, other policy benefits and change in policy reserves, net of deferrals	12		—		154		—		166
(Gain) loss from updating future policy benefits cash flow assumptions, net	—		—		11		—		11
Interest credited on other contract holder funds, net of deferrals and amortization	96		84		115		—		295
Interest expense	6		—		—		22		28
Operating costs and other expenses, net of deferrals	529		1		42		48		620
Amortization of deferred acquisition costs	139		—		3		—		142
Total Operating Benefits and Expenses	782		85		325		70		1,262

Pretax Adjusted Operating Earnings	$	328	$	17	$	7	$	(47)	$	305


Six Months Ended June 30, 2024	Retail Annuities		Institutional Products		Closed Life and Annuity Blocks		Corporate and Other		Total Consolidated
Operating Revenues
Fee income	$	2,185	$	—	$	224	$	24	$	2,433
Premiums	22		—		58		—		80
Net investment income	318		231		331		3		883

Other income	17		—		14		(20)		11
Total Operating Revenues	2,542		231		627		7		3,407

Operating Benefits and Expenses
Death, other policy benefits and change in policy reserves, net of deferrals	25		—		288		—		313
(Gain) loss from updating future policy benefits cash flow assumptions, net	(14)		—		6		—		(8)
Interest credited on other contract holder funds, net of deferrals and amortization	172		169		205		—		546
Interest expense	12		—		—		39		51
Operating costs and other expenses, net of deferrals	1,187		2		70		104		1,363
Amortization of deferred acquisition costs	276		—		4		—		280
Total Operating Benefits and Expenses	1,658		171		573		143		2,545

Pretax Adjusted Operating Earnings	$	884	$	60	$	54	$	(136)	$	862


Six Months Ended June 30, 2023	Retail Annuities		Institutional Products		Closed Life and Annuity Blocks		Corporate and Other		Total Consolidated
Operating Revenues
Fee income	$	1,977	$	—	$	233	$	26	$	2,236
Premiums	10		—		72		—		82
Net investment income	207		188		328		25		748

Other income	19		—		10		5		34
Total Operating Revenues	2,213		188		643		56		3,100

Operating Benefits and Expenses
Death, other policy benefits and change in policy reserves, net of deferrals	(3)		—		317		—		314
(Gain) loss from updating future policy benefits cash flow assumptions, net	(2)		—		27		—		25
Interest credited on other contract holder funds, net of deferrals and amortization	194		160		226		—		580
Interest expense	12		—		—		44		56
Operating costs and other expenses, net of deferrals	1,051		2		81		102		1,236
Amortization of deferred acquisition costs	277		—		5		—		282
Total Operating Benefits and Expenses	1,529		162		656		146		2,493

Pretax Adjusted Operating Earnings	$	684	$	26	$	(13)	$	(90)	$	607

Reconciliation of Segment Operating Revenues to Total Revenues

The following table summarizes the reconciling items from the non-GAAP measure of total operating revenues to the U.S. GAAP measure of total revenues attributable to the Company (in millions):


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Total operating revenues	$	1,727	$	1,567	$	3,407	$	3,100
Fees attributed to guarantee benefit reserves	780		781		1,568		1,561
Net gains (losses) on derivatives and investments	(1,550)		(2,205)		(4,635)		(5,567)
Net investment income (loss) related to noncontrolling interests	7		3		14		4
Consolidated investments	(2)		(18)		16		(41)
Net investment income on funds withheld assets	285		252		555		559
Total revenues (1)	$	1,247	$	380	$	925	$	(384)

(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.

Reconciliation of Segment Operating Benefits and Expenses to Total Benefits and Expenses

The following table summarizes the reconciling items from the non-GAAP measure of total operating benefits and expenses to the U.S. GAAP measure of total benefits and expenses attributable to the Company (in millions):


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Total operating benefits and expenses	$	1,254	$	1,262	$	2,545	$	2,493
Net (gain) loss on market risk benefits	(516)		(2,570)		(3,234)		(2,744)

Benefits attributed to guaranteed benefit features	55		74		118		154
Amortization of DAC related to non-operating revenues and expenses	136		149		275		302

Total benefits and expenses	$	929	$	(1,085)	$	(296)	$	205

Reconciliation of Segment Pretax Adjusted Operating Earnings to Net Income

The following table summarizes the reconciling items, from the non-GAAP measure of pretax adjusted operating earnings to the U.S. GAAP measure of net income attributable to the Company (in millions):


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Pretax adjusted operating earnings	$	473	$	305	$	862	$	607
Pre-tax reconciling items from adjusted operating income to net income (loss) attributable to Jackson Financial Inc.:
Fees attributable to guarantee benefit reserves	780		781		1,568		1,561
Net movement in freestanding derivatives	(1,083)		(1,911)		(3,659)		(4,423)
Market risk benefits gains (losses), net	516		2,570		3,234		2,744
Net reserve and embedded derivative movements	(278)		(194)		(642)		(383)
Amortization of DAC associated with non-operating items at date of transition to LDTI	(136)		(149)		(275)		(302)

Total Guaranteed benefits and net hedging results	(201)		1,097		226		(803)
Net realized investment gains (losses)	(30)		(40)		(37)		(108)
Net realized investment gains (losses) on funds withheld assets	(214)		(134)		(415)		(807)
Net investment income on funds withheld assets	285		252		555		559
Other items	(2)		(18)		16		(41)
Pretax income (loss) attributable to Jackson Financial Inc.	311		1,462		1,207		(593)
Income tax expense (benefit)	36		245		137		(313)
Net income (loss) attributable to Jackson Financial Inc.	275		1,217		1,070		(280)
Dividends on preferred stock	11		13		22		13
Net income (loss) attributable to Jackson Financial Inc. common shareholders	$	264	$	1,204	$	1,048	$	(293)