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 $383 million to $(400) million for the three months ended March 31, 2026, from $(17) million for the three months ended March 31, 2025, primarily due to:

•$831 million unfavorable change in total net gains (losses) on derivatives and investments as discussed below:

◦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 March 31, 2026 reflected a slight increase in interest rates whereas the movements in interest rate hedges during the three months ended March 31, 2025 were primarily driven by a decrease in interest rates. The movements in equity hedges were primarily driven by losses on longer duration futures for the three months ended March 31, 2026.

◦Embedded derivative movements were favorable largely due to equity market decrease impacts on our growing RILA block during the three months ended March 31, 2026, compared to the prior year; and

◦Lower losses recognized on funds withheld reinsurance were driven by a slight increase in interest rates impacting the value of the embedded derivative during the three months ended March 31, 2026, compared to a decrease in interest rates during the three months ended March 31, 2025.

•$58 million increase in operating costs and other expenses, net of deferrals, primarily due to higher incentive and deferred compensation expenses during the three months ended March 31, 2026, and higher other commissions, net of deferrals, driven by increased RILA and fixed index annuity sales compared to the prior year;

•$27 million increase in interest credited on other contract holder funds, net of deferrals and amortization, primarily due to higher average institutional account balances and increased retail new business during the three months ended March 31, 2026, compared to the prior year;

•$20 million increase in death, other policy benefits, and change in policy reserves, net of (gain) loss from updating future policy benefits cash flow assumptions, driven by higher death claim benefits due to the implementation of enhanced processes and data sources for identifying deceased policyholders during the three months ended March 31, 2026, compared to the prior year; and

•$15 million decrease in net investment income as a result of lower income on equity securities and lower income on limited partnerships, which are recorded on a one quarter lag, partially offset by higher income on bonds and lower investment expenses during the three months ended March 31, 2026.

•$576 million favorable movements in market risk benefits (gains) losses, largely due to the effects of increased interest rates, partially offset by the effects of negative fund performance and increases in volatility during the three months ended March 31, 2026, compared to the prior year.

Income Taxes

Income tax expense increased $19 million reflecting an increase in expense to $20 million for the three months ended March 31, 2026, from an expense of $1 million for the three months ended March 31, 2025. The provision for income tax in the current period led to an effective income tax rate ("ETR") of (5)% for the three months ended March 31, 2026, compared to the ETR of (6)% for the three months ended March 31, 2025. The ETR, excluding significant unusual or infrequently occurring items, differs from the statutory rate of 21% primarily due to the dividends received deduction and utilization of foreign tax credits. See Note 15 - Income Taxes of the Notes to Consolidated Financial Statements in our 2025 Annual Report and Note 15 - Income Taxes of the Notes to Condensed Consolidated Financial Statements in this report for more information.