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 reported net investment income starting 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 increased $48 million to $468 million for the three months ended March 31, 2026, from $420 million for the three months ended March 31, 2025, primarily due to:

•$109 million increase in spread income due to $133 million higher investment income, partially offset by $24 million higher interest credited on contract holder funds, compared to the prior year. The increase in investment income was primarily driven by higher debt securities income related primarily to higher invested asset balances. Higher interest credited on contract holder funds was primarily due to increased RILA, fixed index annuity, and fixed annuity new business, compared to prior year; and

•$16 million increase in fee income attributable to higher average separate account values during the three months ended March 31, 2026, compared to the prior year.

•$51 million increase in commissions and general expenses, net of deferrals, reflecting higher general expenses of $32 million, primarily driven by higher incentive compensation, and higher other commissions, net of deferrals, of $12 million, reflecting higher RILA and fixed index annuity sales during the three months ended March 31, 2026 compared to the prior year.

Retail Annuities account value, net of reinsurance, increased $16 billion over the prior year period primarily due to positive variable annuity separate account returns driven by favorable market performance during 2025, as well as positive RILA and fixed index annuity net flows over the last year, partially offset by unfavorable market performance in 2026.

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, which are generally short-term in nature. See Note 10 - Other Contract Holder Funds in the Notes to Condensed Consolidated Financial Statements elsewhere in this report for information regarding FABCP funding agreements.

Pretax adjusted operating earnings increased $10 million to $28 million for the three months ended March 31, 2026, from $18 million for the three months ended March 31, 2025, reflecting a $10 million increase in spread income primarily due to a $27 million increase in investment income, due to higher invested asset balances, partially offset by a $17 million increase in interest credited on contract holder funds, due to increased account values.

Institutional Product account value increased from $9,262 million at March 31, 2025, to $11,141 million at March 31, 2026. The increase in account value was primarily driven by an increased amount of FABN funding agreements and FABCP funding agreements, compared to the prior year. See Note 10 - Other Contract Holder Funds in the Notes to Condensed Consolidated Financial Statements elsewhere in this report for information regarding FABN and FABCP funding agreements.

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 $57 million to $(29) million for the three months ended March 31, 2026, from $28 million for the three months ended March 31, 2025, primarily due to:

•$30 million decrease in spread income due to a $41 million decrease in net investment income driven by lower income on limited partnerships, which are recorded on a one quarter lag, partially offset by an $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; and

•$19 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.

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 decreased $13 million to $(37) million for the three months ended March 31, 2026, from $(24) million for the three months ended March 31, 2025, primarily driven by an $8 million increase in general and administrative expenses, due to higher deferred compensation expenses during the three months ended March 31, 2026.