Jackson Financial Inc
For the period ended Mar 31, 2024. Filed May 8, 2024.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2024 · Filed May 8, 2024
Extracted filing text, with the paragraph anchors used by the comparison.
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Policy and Contract Liabilities
We establish, and carry as liabilities, actuarially determined amounts that are calculated to meet policy obligations or to provide for future annuity payments. Amounts for actuarial liabilities are computed and reported on the Condensed Consolidated Financial Statements in conformity with U.S. GAAP. For more details on Policyholder Liabilities, see "Management’s Discussion and Analysis of Financial Condition and Results of Operations — Critical Accounting Estimates” included in our 2023 Annual Report.
Our policy and contract liabilities includes separate account liabilities, reserves for future policy benefits and claims payable and other contract holder funds. As of March 31, 2024, 90% of our policy and contract liabilities were in our Retail Annuities segment, 3% were in our Institutional Products segment and 7% were in our Closed Life and Annuity Blocks segment.
The tables below represents a breakdown of our policy and contract liabilities:
| March 31, 2024 | Separate Accounts | Reserves for future policy benefits | Other contract holder funds | Market Risk Benefits | Total |
|---|---|---|---|---|---|
| (in millions) | |||||
| Variable Annuities | $230,479 | $— | $7,991 | $(4,226) | $234,244 |
| RILA (1) | — | — | 6,644 | 3 | 6,647 |
| Fixed Annuities | — | — | 9,350 | 1 | 9,351 |
| Fixed Index Annuities (2) | — | — | 9,923 | 33 | 9,956 |
| Payout Annuities | — | 1,092 | 851 | — | 1,943 |
| Other Annuities | 213 | — | — | — | 213 |
| Total Retail Annuities | 230,692 | 1,092 | 34,759 | (4,189) | 262,354 |
| Total Institutional Products | — | — | 7,825 | — | 7,825 |
| Total Closed Life and Annuity Blocks | 81 | 9,060 | 12,146 | 7 | 21,294 |
| Total Policy and Contract Liabilities | 230,773 | 10,152 | 54,730 | (4,182) | 291,473 |
| Claims payable and other | — | 1,433 | 167 | — | 1,600 |
| Total | $230,773 | $11,585 | $54,897 | $(4,182) | $293,073 |
Item 2 |Management’s Discussion and Analysis | Policy and Contract Liabilities
| December 31, 2023 | Separate Accounts | Reserves for future policy benefits | Other contract holder funds | Market Risk Benefits | Total |
|---|---|---|---|---|---|
| (in millions) | |||||
| Variable Annuities | $219,381 | $— | $8,396 | $(2,000) | $225,777 |
| RILA (1) | — | — | 5,219 | 3 | 5,222 |
| Fixed Annuities | — | — | 9,736 | 1 | 9,737 |
| Fixed Index Annuities (2) | — | — | 10,243 | 37 | 10,280 |
| Payout Annuities | — | 1,090 | 860 | — | 1,950 |
| Other Annuities | 198 | — | — | — | 198 |
| Total Retail Annuities | 219,579 | 1,090 | 34,454 | (1,959) | 253,164 |
| Total Institutional Products | — | — | 8,406 | — | 8,406 |
| Total Closed Life and Annuity Blocks | 77 | 9,362 | 12,291 | 7 | 21,737 |
| Total Policy and Contract Liabilities | 219,656 | 10,452 | 55,151 | (1,952) | 283,307 |
| Claims payable and other | — | 1,446 | 168 | — | 1,614 |
| Total | $219,656 | $11,898 | $55,319 | $(1,952) | $284,921 |
(1) Includes the embedded derivative liabilities in other contract holder funds related to RILA of $1,703 million and $1,224 million at March 31, 2024 and December 31, 2023, respectively.
(2) Includes the embedded derivative liabilities related to fixed index annuity in other contract holder funds of $865 million and $866 million at March 31, 2024 and December 31, 2023, respectively.
As of March 31, 2024:
$230.8 billion or 79% of our policy and contract liabilities were backed by separate account assets. These separate account assets backed reserves primarily related to our variable annuities. Separate account liabilities are fully funded by cash flows from the customer’s corresponding separate account assets and are set equal to the fair value of such invested assets.
$42.9 billion of our policy and contract liabilities were backed by our investment portfolio.
$17.8 billion of our policy and contract liabilities were reinsured by Athene and backed by funds withheld assets.
As of March 31, 2024, 100% of our RILA policy and contract liabilities were subject to surrender charges of at least 5% or at market value in the event of discretionary withdrawal by customers.
As of March 31, 2024, 94% of fixed annuity, fixed-indexed annuity, and the fixed accounts of RILA and variable annuity correspond to crediting rates that are at the guaranteed minimum crediting rate. We have the discretion, subject to contractual limitations and minimums, to reset the crediting terms on the majority of our fixed index annuities and fixed annuities.
See Note 9 - Reserves for Future Policy Benefits and Claims Payable, Note 10 - Other Contract Holder Funds, Note 11 - Separate Account Assets and Liabilities, and Note 12 - Market Risk Benefits of the Notes to Condensed Consolidated Financial Statements for additional discussion on accounting policies around Reserves for future policy benefits and claims payable, Other contract holder funds, Separate account assets and liabilities and MRBs.
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