Jackson Financial Inc.

The following table sets forth, for the periods presented, certain data from our Condensed Consolidated Income Statements. The information contained in the table below should be read in conjunction with our Condensed Consolidated Financial Statements and the related notes elsewhere in this report:

Pretax Income (Loss)

Our pretax income (loss) decreased by $129 million to $189 million for the three months ended June 30, 2025, from $318 million for the three months ended June 30, 2024, primarily due to:

•$1,631 million decrease in total net gains (losses) on derivatives and investments as shown in the table below and driven by:

◦Volumes of freestanding derivatives can vary significantly period over period and movements in those derivatives are subject to interest rate or market movements. The movements in interest rate hedges during the three months ended June 30, 2025 reflected relatively stable interest rates whereas the movements in interest rate hedges during the three months ended June 30, 2024 were primarily driven by an increase in interest rates. The movements in equity hedges during the three months ended June 30, 2025 were primarily driven by larger increases in equity markets compared to smaller increases during the three months ended June 30, 2024;

◦Embedded derivative movements were unfavorable largely due to equity market increase impacts on our growing RILA block during the three months ended June 30, 2025, compared to the prior year;

•$77 million increase in death, other policy benefits, and change in policy reserves, net of (gain) loss from updating future policy benefits cash flow assumptions, primarily due to changes in mortality and higher other policyholder benefits during the three months ended June 30, 2025, compared to the prior year;

•$66 million decrease in fee income primarily due to decreases in variable fee income, due to lower average separate account values, and decreases in benefit-based guarantee fee income during the three months ended June 30, 2025, compared to the prior year;

•$30 million decrease in net investment income as a result of lower income on limited partnerships, which are recorded on a one quarter lag, and lower income on funds withheld assets, partially offset by higher income on bonds and lower expenses during the three months ended June 30, 2025; and

•$22 million increase in interest credited on other contract holder funds, net of deferrals and amortization, primarily due to higher average institutional account balances and fixed annuity and RILA new business during the three months ended June 30, 2025, compared to the prior year.

These movements were partially offset by:

•$1,687 million favorable movements in market risk benefits (gains) losses, largely due to favorable movements in fund performance during the three months ended June 30, 2025, compared to the prior year.

Income Taxes

Income tax expense decreased $32 million to an expense of $4 million for the three months ended June 30, 2025, from an expense of $36 million for the three months ended June 30, 2024. The provision for income tax in the current period led to an effective income tax rate ("ETR") of 2% for the three months ended June 30, 2025, compared to the ETR of 11% for the three months ended June 30, 2024. The change in the ETR during the three months ended June 30, 2025, compared to the three months ended June 30, 2024, was due to the relationship of the taxable income to the consolidated pre-tax income (loss) and the valuation allowance. The ETR differs from the statutory rate of 21% primarily due to the dividends received deduction, utilization of foreign tax credits, and the valuation allowance. See Note 15 - Income Taxes of the Notes to Consolidated Financial Statements in our 2024 Annual Report and Note 15 - Income Taxes of the Notes to Condensed Consolidated Financial Statements in this report for more information.

Pretax Income (Loss)

Our pretax income (loss) decreased by $1,049 million to $172 million for the six months ended June 30, 2025, from $1,221 million for the six months ended June 30, 2024, primarily due to:

•$3,277 million in unfavorable movements in market risk benefits (gains) losses, net, primarily due to less favorable movements in interest rates and fund performance, as well as unfavorable volatility movements in 2025, compared to the prior year;

•$101 million increase in death, other policy benefits, and change in policy reserves, net of (gain) loss from updating future policy benefits cash flow assumptions, primarily due to changes in mortality and higher other policyholder benefits;

•$78 million decrease in fee income primarily due to decreases in variable fee income, due to lower average separate account values, and decreases in benefit-based guarantee fee income during 2025, compared to the prior year; and

•$37 million increase in interest credited on contract holder funds, net of deferrals and amortization, primarily due to higher average institutional account balances in 2025 and fixed annuity and RILA new business, compared to the prior year.

These movements were partially offset by:

•$2,417 million improvement in total net gains (losses) on derivatives and investments as shown in the table below and driven by:

◦Volumes of freestanding derivatives can vary significantly period over period and movements in those derivatives are subject to interest rate or market movements. The movements in interest rate hedges during the six months ended June 30, 2025 were primarily driven by a decrease in interest rates as opposed to an increase in interest rates during the prior year. The movements in equity hedges during the six months ended June 30, 2025 were primarily driven by smaller increases in equity markets compared to larger increases in equity markets during the six months ended June 30, 2024; and

◦Higher losses recognized on funds withheld reinsurance were driven by the decrease in interest rates impacting the value of the embedded derivative during 2025, compared to an increase in interest rates in 2024.

Income Taxes

Income tax expense decreased $132 million to an expense of $5 million for the six months ended June 30, 2025, from an expense of $137 million for the six months ended June 30, 2024. The provision for income tax in the current period led to an ETR of 3% for the six months ended June 30, 2025 compared to the ETR of 11% the six months ended June 30, 2024. The change in the ETR during the six months ended June 30, 2025 compared to the six months ended June 30, 2024 was due to the relationship of the taxable income to the consolidated pre-tax income. Our ETR differs from the statutory rate of 21% primarily due to the dividends received deduction, utilization of foreign tax credits and valuation allowance. See Note 15 - Income Taxes of the Notes to Consolidated Financial Statements in our 2024 Annual Report and Note 15 - Income Taxes of the Notes to Condensed Consolidated Financial Statements in this report for more information.