Jackson Financial (NYSE:JXN) reported record adjusted operating earnings in the second quarter of 2026, supported by higher fee income, growth in spread-based products and strong equity-market performance. The company also said it remains on track to meet its full-year free capital generation and shareholder-return targets.
Adjusted operating earnings were $7.30 per diluted share for the quarter, a company record. Pre-tax adjusted operating earnings totaled $618 million, or $648 million excluding notable items. On that basis, earnings increased 50% from a year earlier, Chief Financial Officer Don Cummings said, citing expanding spread-based assets, growth in fee-based assets under management and higher net investment income.
Retail annuity sales accelerate
Retail annuity sales approached $6 billion in the second quarter, up 34% from a year earlier and higher than the first quarter. President and CEO Laura Prieskorn said sales increased across all product categories.
Registered index-linked annuity, or RILA, sales exceeded $2.3 billion, rising 69% from the prior-year period and marking a quarterly record. RILA assets under management surpassed $26 billion. Jackson launched Market Link Pro 4 and Market Link Pro Advisory 4 in June, products that include an index option linked to the Dow Jones Industrial Average.
Spread-based products represented 54% of total sales during the quarter, Cummings said. Fixed and fixed-index annuity sales totaled $812 million, up 73% from a year earlier, aided by the company’s Jackson Income Assurance product. For the first half, fixed-index annuity sales reached $1.3 billion.
Non-variable annuity net inflows were $2.9 billion, an increase of 65% from the prior-year quarter and 16% sequentially. Total retail annuity net outflows declined for a second consecutive quarter and improved 20% in the first half compared with the same period in 2025, Prieskorn said.
Variable annuity surrenders were influenced by equity-market gains, with separate-account returns of 12.9% during the quarter contributing more than $27 billion of investment gains in variable annuity assets under management. Those gains exceeded variable annuity net outflows by more than $22 billion, according to Cummings.
Combined retail annuity and institutional account value exceeded $295 billion at quarter end, up 10% sequentially. Nearly 40% of Jackson’s in-force book consisted of spread-based and investment-only variable annuity products, reflecting the company’s diversification efforts.
Capital generation, liquidity and investment strategy
Jackson generated $575 million in free cash flow during the first half, up 14% from a year earlier, and returned $547 million to common shareholders through dividends and share repurchases. Second-quarter capital returns totaled $290 million.
After-tax statutory capital generation was $656 million in the second quarter, while free capital generation was $304 million. Cummings said free capital generation reflected higher required capital associated with new business production, equity-market effects and sales patterns under the risk-based capital framework.
The company maintained its full-year targets of at least $1.2 billion in free capital generation and $900 million to $1.1 billion in capital returns to common shareholders. Total adjusted capital ended the quarter at $5.8 billion, with an estimated risk-based capital ratio of 538%, above the company’s 425% risk-appetite level.
- Holding-company cash and investments totaled nearly $1.4 billion at quarter end.
- Jackson issued $750 million of senior debt during the quarter, pre-funding $650 million of debt maturities due in 2027 and adding $100 million of holding-company liquidity.
- The company expanded its revolving credit facility to $1.25 billion from $1 billion and extended its maturity to 2031 from 2028.
- Total available liquidity at Jackson Financial Inc. was about $4 billion, including cash, highly liquid securities and the undrawn credit facility.
Cummings said new money was invested at rates above the existing portfolio yield, with new-money yield about 100 basis points above the overall portfolio yield during the quarter. PPM America, Jackson’s investment management subsidiary, surpassed $100 billion in assets under management. The company said its partnership with TPG is expanding investment sourcing capabilities, including in direct lending and asset-backed finance.
Hedging and leadership transition
Jackson reported an overall net hedge gain of $2 million after isolating implied-volatility effects on market risk benefits. Gains in RILA and fixed-index annuity businesses were largely offset by losses in variable annuities. Brian Walta, head of planning and asset liability management, said the company manages the RILA and variable annuity liabilities independently and seeks economic and statutory outcomes rather than GAAP accounting results alone.
Prieskorn also confirmed that she will retire at the end of 2026 after nearly 40 years with Jackson. Cummings will become president and CEO on Oct. 1, while Walta will succeed him as chief financial officer.
“This transition reflects the strength of Jackson’s organization and the thoughtful succession planning process in place to ensure continuity, stability, and long-term success,” Prieskorn said.
About Jackson Financial (NYSE:JXN)
Jackson Financial Inc is a U.S.-based financial services holding company headquartered in Lansing, Michigan. The company operates primarily through its principal subsidiary, Jackson National Life Insurance Company, and specializes in designing and distributing retirement products. Jackson Financial has been publicly traded on the New York Stock Exchange under the ticker JXN since its initial public offering in May 2022.
The company’s core offerings include a broad range of fixed, variable and indexed annuity products aimed at helping individuals preserve and grow retirement assets.
