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 $144 million to $638 million for the three months ended September 30, 2026, from $494 million for the three months ended September 30, 2025, primarily due to:

•$155 million increase in spread income due to $199 million higher investment income, partially offset by $44 million higher interest credited, compared to the prior year. The increase in investment income was primarily due to higher debt security and mortgage loan income driven by 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 September 30, 2026, compared to prior year; and

•$14 million increase in fee income primarily due to higher average separate account values, during the three months ended September 30, 2026, compared to the prior year.

•$18 million increase in amortization of deferred acquisition costs primarily driven by growth of our RILA block; and

•$13 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 September 30, 2026, compared to prior year.

Pretax adjusted operating earnings increased $396 million to $1,727 million for the nine months ended September 30, 2026, from $1,331 million for the nine months ended September 30, 2025, primarily due to:

•$419 million increase in spread income primarily due to $516 million higher investment income, partially offset by $97 million higher interest credited, compared to the prior year. The increase in investment income was primarily due to higher debt security and mortgage loan income driven by higher invested asset balances. Increased interest credited was primarily due to increased RILA and fixed index annuity new and in-force business during the nine months ended September 30, 2026; and

•$111 million increase in fee income primarily due to higher average separate account values during the nine months ended September 30, 2026, compared to prior year.

•$63 million increase in commissions and general expenses, net of deferrals, reflecting higher asset-based non-deferrable commissions of $45 million, due to higher account values during the nine months ended September 30, 2026, and higher general expenses of $37 million primarily driven by higher incentive compensation during the nine months ended September 30, 2026, compared to prior year;

•$47 million increase in amortization of deferred acquisition costs primarily driven by growth of our RILA block; and

•$14 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 nine months ended September 30, 2026, compared to prior year.

Retail Annuities account value, net of reinsurance, increased $12 billion over the prior year period primarily due to positive variable annuity separate account returns driven by favorable market performance, 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:

Pretax adjusted operating earnings decreased $8 million to $23 million for the three months ended September 30, 2026, from $31 million for the three months ended September 30, 2025, reflecting an $8 million decrease in spread income primarily due to a $4 million decrease in investment income and a $4 million increase in interest credited.

Pretax adjusted operating earnings increased $12 million to $80 million for the nine months ended September 30, 2026, from $68 million for the nine months ended September 30, 2025, reflecting a $12 million increase in spread income primarily due to a $38 million increase in investment income, due to higher invested asset balances, partially offset by a $26 million increase in interest credited, due to higher average account balances in 2026.

Institutional product account value increased slightly from $10,877 million at September 30, 2025, to $11,432 million at September 30, 2026, as sales of FABN and FABCP funding agreements were mostly offset by maturities in the current 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 $18 million to $(3) million for the three months ended September 30, 2026, from $15 million for the three months ended September 30, 2025, primarily due to:

•$35 million decrease in spread income due to a $38 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 $3 million decrease in interest credited, resulting from the continued run off of the closed block of life business.

This decrease was partially offset by:

•$20 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 death claims net reserves released due to run off of the closed block of life business during the three months ended September 30, 2026, compared to prior year.

Pretax adjusted operating earnings decreased $107 million to $(42) million for the nine months ended September 30, 2026, from $65 million for the nine months ended September 30, 2025, primarily due to:

•$102 million decrease in spread income due to a $120 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 an $18 million decrease in interest credited, resulting from the continued run off of the closed block of life business; and

•$14 million decrease in fee income resulting from the continued run off of the closed block of life business.

•$11 million decrease 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, offset by decreases in reserves mainly due to these higher claims and lower other policyholder benefits during the nine months ended September 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 decreased $11 million to $(46) million for the three months ended September 30, 2026, from $(35) million for the three months ended September 30, 2025, primarily driven by higher interest expense of $12 million incurred in the current year related to our senior notes.

Pretax adjusted operating earnings improved $6 million to $(105) million for the nine months ended September 30, 2026, from $(111) million for the nine months ended September 30, 2025, primarily driven by a $22 million increase in net investment income, partially offset by higher interest expense of $14 million incurred in the current year related to our senior notes.

Item 2 |Management’s Discussion and Analysis |Investments