Jackson Financial Inc.

We manage our business through three reportable segments: Retail Annuities, Institutional Products, and Closed Life and Annuity Blocks. We report certain activities and items that are not included in these segments, including the results of PPM Holdings, Inc., the holding company of PPM, within Corporate and Other. The following tables and discussion represent an overall view of our results of operations for each segment.

Pretax Adjusted Operating Earnings by Segment

The following table summarizes pretax adjusted operating earnings (non-GAAP) from the Company's business segment operations and also provides a reconciliation of the segment measure to net income on a consolidated U.S. GAAP basis. As part of the Company’s asset liability management program, management monitors the allocation of invested assets supporting the Company’s contractual liabilities. During the first quarter of 2025, that monitoring resulted in the reallocation of certain invested assets across reportable segments and Corporate and Other. The results of this reallocation are reflected in the net investment income reported for the second quarter of 2025. The impact of the reallocation was not material to the prior period financial results and prior period financial figures were not recast to reflect the reallocated basis. Also, see Note 3 - Segment Information of the Notes to Condensed Consolidated Financial Statements for further information regarding the calculation of pretax adjusted operating earnings:

Retail Annuities

The following table sets forth, for the periods presented, certain data underlying the pretax adjusted operating earnings results for our Retail Annuities segment. The information contained in the table below should be read in conjunction with our Condensed Consolidated Financial Statements and the related notes appearing elsewhere in this report:

The following table summarizes a roll-forward of activity affecting account value for our Retail Annuities segment for the periods indicated:

Pretax adjusted operating earnings decreased $48 million to $417 million for the three months ended June 30, 2025, from $465 million for the three months ended June 30, 2024, primarily due to:

•$43 million decrease in fee income attributable to lower average separate account values during the three months ended June 30, 2025, compared to the prior year; and

•$38 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 attributable to higher other policyholder benefits during the three months ended June 30, 2025.

•$21 million increase in spread income due to $38 million higher investment income, partially offset by $17 million higher interest credited on contract holder funds, compared to the prior year. Investment income was driven by higher invested asset balances. Increased interest credited on contract holder funds was primarily due to higher fixed annuity and RILA new business; and

•$11 million decrease in commissions and general expenses, net of deferrals, reflecting lower non-deferrable asset-based commissions expense of $6 million and lower sub-advisor expenses of $6 million, primarily driven by lower account values during the three months ended June 30, 2025.

Pretax adjusted operating earnings decreased $47 million to $837 million for the six months ended June 30, 2025, from $884 million for the six months ended June 30, 2024, primarily due to:

•$47 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 attributable to higher other policyholder benefits during the six months ended June 30, 2025;

•$31 million decrease in fee income primarily due to lower average separate account values, compared to the prior year; and

•$15 million increase in commissions and general expenses, net of deferrals, reflecting higher general and administrative expenses of $19 million during the six months ended June 30, 2025.

•$50 million increase in spread income primarily due to $73 million higher investment income and $23 million higher interest credited on contract holder funds compared to the prior year period. Investment income was driven by higher invested asset balances. Increased interest credited on contract holder funds was primarily due to higher fixed annuity and RILA new business.

Retail annuities account value, net of reinsurance, increased $11 billion over the prior year period primarily due to positive variable annuity separate account returns driven by favorable market performance in 2025, as well as positive RILA and fixed annuity net flows over the period.

Institutional Products

The following table sets forth, for the periods presented, certain data underlying the pretax adjusted operating earnings results for our Institutional Products segment. The information contained in the table below should be read in conjunction with our Condensed Consolidated Financial Statements and the related notes appearing elsewhere in this report:

The following table summarizes a roll-forward of activity affecting account value for our Institutional Products segment for the periods indicated:

(1) Includes net deposit and withdrawal activity for FABCP funding agreements.

Pretax adjusted operating earnings decreased $10 million to $19 million for the three months ended June 30, 2025, from $29 million for the three months ended June 30, 2024, reflecting a $9 million decrease in spread income primarily due to a $16 million increase in interest credited on contract holder funds, due to increased account values, partially offset by a $7 million increase in investment income.

Pretax adjusted operating earnings decreased $23 million to $37 million for the six months ended June 30, 2025, from $60 million for the six months ended June 30, 2024, reflecting a $22 million decrease in spread income primarily due to a $32 million increase in interest credited on contract holder funds, due to increased account values, partially offset by a $10 million increase in investment income.

Institutional product account value increased from $7,299 million at June 30, 2024, to $10,354 million at June 30, 2025. The increase in account value was primarily driven by an increased amount of FABN funding agreements and FABCP funding agreement in 2025.

Closed Life and Annuity Blocks

The following table sets forth, for the periods presented, certain data underlying the pretax adjusted operating earnings results for our Closed Life and Annuity Blocks segment. The information contained in the table below should be read in conjunction with our Condensed Consolidated Financial Statements and the related notes appearing elsewhere in this report:

Pretax adjusted operating earnings decreased $13 million to $22 million for the three months ended June 30, 2025, from $35 million for the three months ended June 30, 2024, primarily due to:

•$23 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

•$7 million decrease in premiums resulting from the continued run off of the closed block of life business.

•$13 million increase in net investment income; and

•$11 million decrease in interest credited on other contract holder funds, net of deferrals and amortization, resulting from the continued run off of the closed block of life business.

Pretax adjusted operating earnings decreased $4 million to $50 million for the six months ended June 30, 2025, from $54 million for the six months ended June 30, 2024, primarily due to:

•$39 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, partially offset by lower other policyholder benefits; and

•$8 million decrease in premium resulting from the continued run off of the closed block of life business.

•$37 million increase in net investment income; and

•$18 million decrease in interest credited on contract holder funds, net of deferrals and amortization, resulting from the continued run off of the closed block of life business.

Corporate and Other

Corporate and Other includes the operations of PPM Holdings, Inc., the parent holding company of PPM, and unallocated corporate revenue and expenses, as well as certain eliminations and consolidation adjustments. The following table sets forth, for the periods presented, certain data underlying the pretax adjusted operating earnings results for Corporate and Other. The information contained in the table below should be read in conjunction with our Condensed Consolidated Financial Statements and the related notes appearing elsewhere in this report:

Pretax adjusted operating earnings improved $4 million to $(52) million for the three months ended June 30, 2025, from $(56) million for the three months ended June 30, 2024, primarily driven by a $10 million increase in other income, and a $9 million increase in net investment income, partially offset by a $13 million increase in general and administrative expenses, due to increased deferred compensation expenses during the three months ended June 30, 2025.

Pretax adjusted operating earnings improved $60 million to $(76) million for the six months ended June 30, 2025, from $(136) million for the six months ended June 30, 2024, primarily driven by a $25 million increase in other income primarily due to a one-time reinsurance related adjustment in 2024, a $21 million decrease in general and administrative expenses, due to decreased deferred compensation expenses, and a $16 million increase in net investment income.

Item 2 |Management’s Discussion and Analysis |Investments