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. 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 $204 million to $621 million for the three months ended June 30, 2026, from $417 million for the three months ended June 30, 2025, primarily due to:

•$155 million increase in spread income due to $184 million higher investment income, partially offset by $29 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 was primarily due to increased RILA and fixed index annuity new and in force business during the three months ended June 30, 2026, compared to prior year; and

•$81 million increase in fee income primarily due to higher average separate account values, during the three months ended June 30, 2026, compared to the prior year.

•$16 million increase in commissions and general expenses, net of deferrals, primarily due to higher asset-based commission of $25 million, due to higher account values during the three months ended June 30, 2026, compared to the prior year.

Pretax adjusted operating earnings increased $252 million to $1,089 million for the six months ended June 30, 2026, from $837 million for the six months ended June 30, 2025, primarily due to:

•$264 million increase in spread income primarily due to $317 million higher investment income, partially offset by $53 million higher interest credited on contract holder funds compared to the prior year. The increase in investment income was driven by higher debt securities income primarily due to higher invested asset balances. Increased interest credited was primarily due to increased RILA and fixed index annuity new and in force business during the six months ended June 30, 2026; and

•$97 million increase in fee income primarily due higher average separate account values during the six months ended June 30, 2026, compared to prior year.

•$67 million increase in commissions and general expenses, net of deferrals, reflecting higher asset-based commission of $36 million, due to higher account values during the six months ended June 30, 2026, and higher general expenses of $34 million primarily driven by higher incentive compensation during the six months ended June 30, 2026, compared to prior year.

Retail Annuities account value, net of reinsurance, increased $26 billion over the prior year period primarily due to positive variable annuity separate account returns driven by favorable market performance during 2026, as well as positive RILA and fixed index annuity net flows over the current 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, 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 $29 million for the three months ended June 30, 2026, from $19 million for the three months ended June 30, 2025, reflecting a $10 million increase in spread income primarily due to a $15 million increase in investment income, due to higher invested asset balances, partially offset by a $5 million increase in interest credited.

Pretax adjusted operating earnings increased $20 million to $57 million for the six months ended June 30, 2026, from $37 million for the six months ended June 30, 2025, reflecting an $20 million increase in spread income primarily due to a $42 million increase in investment income, due to higher invested asset balances, partially offset by a $22 million increase in interest credited, due to increased account values.

Institutional product account value increased from $10,354 million at June 30, 2025, to $11,018 million at June 30, 2026. The increase in account value was primarily driven by an increased amount of FABN and FABCP funding agreements in 2025, partially offset by maturities of our existing funding agreements. 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 $32 million to $(10) million for the three months ended June 30, 2026, from $22 million for the three months ended June 30, 2025, primarily due to:

•$37 million decrease in spread income due to a $41 million decrease in net investment income primarily due to lower income on limited partnerships, which are recorded on a one quarter lag, partially offset by a $4 million decrease in interest credited, resulting from the continued run off of the closed block of life business.

This movement was partially offset by:

•$10 million decrease 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 decreases in reserves due to run off of the closed block of life business during the three months ended June 30, 2026, compared to prior year.

Pretax adjusted operating earnings decreased $89 million to $(39) million for the six months ended June 30, 2026, from $50 million for the six months ended June 30, 2025, primarily due to:

•$67 million decrease in spread income due to a $82 million decrease in net investment income primarily due to lower income on limited partnerships, which are recorded on a one quarter lag, partially offset by a $15 million decrease in interest credited, resulting from the continued run off of the closed block of life business;

•$10 million decrease in fee income resulting from the continued run off of the closed block of life business; and

•$9 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, partially offset by decreases in reserves due to these higher claims and lower other policyholder benefits during the six months ended June 30, 2026.

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 $30 million to $(22) million for the three months ended June 30, 2026, from $(52) million for the three months ended June 30, 2025, primarily driven by a $19 million increase in net investment income and a $12 million decrease in general and administrative expenses, primarily due to lower deferred compensation expenses during the three months ended June 30, 2026.

Pretax adjusted operating earnings improved $17 million to $(59) million for the six months ended June 30, 2026, from $(76) million for the six months ended June 30, 2025, primarily driven by a $16 million increase in net investment income during the six months ended June 30, 2026.

Item 2 |Management’s Discussion and Analysis |Investments