Segment Information (Tables)

9 Months Ended

Sep. 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 September 30, 2024	Retail Annuities		Institutional Products		Closed Life and Annuity Blocks		Corporate and Other		Total Consolidated
Operating Revenues
Fee income	$	1,128	$	—	$	111	$	12	$	1,251
Premiums	12		—		22		—		34
Net investment income	196		101		155		—		452

Other income (loss)	8		—		7		(1)		14
Total Operating Revenues	1,344		101		295		11		1,751

Operating Benefits and Expenses
Death, other policy benefits and change in policy reserves, net of deferrals	26		—		131		—		157
(Gain) loss from updating future policy benefits cash flow assumptions, net	(12)		—		11		—		(1)
Interest credited on other contract holder funds, net of deferrals and amortization	88		83		104		—		275
Interest expense	6		—		—		19		25
Operating costs and other expenses, net of deferrals	638		1		40		63		742
Amortization of deferred acquisition costs	140		—		2		—		142
Total Operating Benefits and Expenses	886		84		288		82		1,340

Pretax Adjusted Operating Earnings	$	458	$	17	$	7	$	(71)	$	411


Three Months Ended September 30, 2023	Retail Annuities		Institutional Products		Closed Life and Annuity Blocks		Corporate and Other		Total Consolidated
Operating Revenues
Fee income	$	1,038	$	—	$	112	$	11	$	1,161
Premiums	6		—		30		—		36
Net investment income	110		109		161		14		394

Other income	9		—		8		1		18
Total Operating Revenues	1,163		109		311		26		1,609

Operating Benefits and Expenses
Death, other policy benefits and change in policy reserves, net of deferrals	24		—		150		—		174
(Gain) loss from updating future policy benefits cash flow assumptions, net	(4)		—		4		—		—
Interest credited on other contract holder funds, net of deferrals and amortization	90		87		107		—		284
Interest expense	6		—		—		22		28
Operating costs and other expenses, net of deferrals	554		1		41		30		626
Amortization of deferred acquisition costs	139		—		3		—		142
Total Operating Benefits and Expenses	809		88		305		52		1,254

Pretax Adjusted Operating Earnings	$	354	$	21	$	6	$	(26)	$	355


Nine Months Ended September 30, 2024	Retail Annuities		Institutional Products		Closed Life and Annuity Blocks		Corporate and Other		Total Consolidated
Operating Revenues
Fee income	$	3,313	$	—	$	335	$	36	$	3,684
Premiums	34		—		80		—		114
Net investment income	514		332		486		3		1,335

Other income (loss)	25		—		21		(21)		25
Total Operating Revenues	3,886		332		922		18		5,158

Operating Benefits and Expenses
Death, other policy benefits and change in policy reserves, net of deferrals	51		—		419		—		470
(Gain) loss from updating future policy benefits cash flow assumptions, net	(26)		—		17		—		(9)
Interest credited on other contract holder funds, net of deferrals and amortization	260		252		309		—		821
Interest expense	18		—		—		58		76
Operating costs and other expenses, net of deferrals	1,825		3		110		167		2,105
Amortization of deferred acquisition costs	416		—		6		—		422
Total Operating Benefits and Expenses	2,544		255		861		225		3,885

Pretax Adjusted Operating Earnings	$	1,342	$	77	$	61	$	(207)	$	1,273


Nine Months Ended September 30, 2023	Retail Annuities		Institutional Products		Closed Life and Annuity Blocks		Corporate and Other		Total Consolidated
Operating Revenues
Fee income	$	3,015	$	—	$	345	$	37	$	3,397
Premiums	16		—		102		—		118
Net investment income	317		297		489		39		1,142

Other income	28		—		18		6		52
Total Operating Revenues	3,376		297		954		82		4,709

Operating Benefits and Expenses
Death, other policy benefits and change in policy reserves, net of deferrals	21		—		467		—		488
(Gain) loss from updating future policy benefits cash flow assumptions, net	(6)		—		31		—		25
Interest credited on other contract holder funds, net of deferrals and amortization	284		247		333		—		864
Interest expense	18		—		—		66		84
Operating costs and other expenses, net of deferrals	1,605		3		122		132		1,862
Amortization of deferred acquisition costs	416		—		8		—		424
Total Operating Benefits and Expenses	2,338		250		961		198		3,747

Pretax Adjusted Operating Earnings	$	1,038	$	47	$	(7)	$	(116)	$	962

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 September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Total operating revenues	$	1,751	$	1,609	$	5,158	$	4,709
Fees attributed to guarantee benefit reserves	779		784		2,347		2,345
Net gains (losses) on hedging instruments and investments	(678)		(137)		(5,313)		(5,704)
Net investment income (loss) related to noncontrolling interests	3		17		17		21
Consolidated investments	(3)		9		13		(32)
Net investment income on funds withheld assets	269		303		824		862
Total revenues (1)	$	2,121	$	2,585	$	3,046	$	2,201

(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 September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Total operating benefits and expenses	$	1,340	$	1,254	$	3,885	$	3,747
Net (gain) loss on market risk benefits	1,172		(2,376)		(2,062)		(5,120)

Benefits attributed to guaranteed benefit features	53		57		171		211
Amortization of DAC related to non-operating revenues and expenses	135		148		410		450

Total benefits and expenses	$	2,700	$	(917)	$	2,404	$	(712)

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 September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Pretax adjusted operating earnings	$	411	$	355	$	1,273	$	962
Pre-tax reconciling items from adjusted operating income to net income (loss) attributable to Jackson Financial Inc.:
Fees attributable to guarantee benefit reserves	779		784		2,347		2,345
Net gains (losses) on hedging instruments	591		(271)		(3,068)		(4,694)
Market risk benefits gains (losses), net	(1,172)		2,376		2,062		5,120
Net reserve and embedded derivative movements	(493)		45		(1,135)		(338)
Amortization of DAC associated with non-operating items at date of transition to LDTI	(135)		(148)		(410)		(450)

Total Guaranteed benefits and net hedging results	(430)		2,786		(204)		1,983
Net realized investment gains (losses)	(45)		(127)		(82)		(235)
Net realized investment gains (losses) on funds withheld assets	(784)		159		(1,199)		(648)
Net investment income on funds withheld assets	269		303		824		862
Other items	(3)		9		13		(32)
Pretax income (loss) attributable to Jackson Financial Inc.	(582)		3,485		625		2,892
Income tax expense (benefit)	(113)		712		24		399
Net income (loss) attributable to Jackson Financial Inc.	(469)		2,773		601		2,493
Dividends on preferred stock	11		11		33		24
Net income (loss) attributable to Jackson Financial Inc. common shareholders	$	(480)	$	2,762	$	568	$	2,469