LANSING - Jackson National Life Insurance Company, a principal subsidiary of Jackson Financial Inc. (NYSE: NYSE:JXN), has announced a partnership with JPMorganChase to distribute its Jackson Market Link Pro II®, a registered index-linked annuity (RILA), to J.P. Morgan Wealth Management's network of approximately 5,000 financial professionals.
This collaboration aims to integrate Jackson's RILA product into the wealth management strategies provided by J.P. Morgan, offering a financial instrument that combines potential asset growth with protective features. Greg Masucci, Senior Vice President of Strategic Relationships at Jackson, expressed enthusiasm over the partnership, underscoring the growing adoption of RILAs in investment portfolios seeking a balance of growth potential and downside protection.
The announcement highlights Jackson's commitment to simplifying retirement planning and enhancing the financial tools available to professionals and clients. The company's dedication to service quality has been recognized with multiple Call Center Awards from the Service Quality Measurement Group, indicating a focus on resolving customer inquiries effectively.
Jackson's RILA products, including the Market Link Pro II, are designed to fit into a client's holistic financial plan, with an emphasis on clarity and long-term retirement outcomes. While the company markets a range of annuity products, it is important to note that all guarantees are backed by the claims-paying ability of Jackson National Life Insurance Company and not by the purchasing broker/dealer, insurance agency, or their affiliates.
The partnership with JPMorganChase is poised to enhance the distribution reach of Jackson's RILA, potentially impacting the retirement planning landscape. However, as with any financial product, investors are advised to consider their investment objectives and risks, and to review the current contract prospectus carefully before investing.
This move is based on a press release statement and reflects the ongoing changes within the annuity distribution market. It should be noted that product availability may vary by state and firm, and state variations may apply.
In other recent news, Jackson Financial reported a significant growth of 36% in total retail annuity sales for the second quarter of 2024, despite a $1 billion loss due to interest rate and equity hedge losses. The company's variable annuity sales reached $2.7 billion while Registered Index-Linked Annuities (RILAs) sales hit a record $1.4 billion. Adjusted operating earnings stood at $410 million, marking a 45% increase from the previous year.
In addition, Jackson Financial announced an increase in its share repurchase authorization by $750 million and declared a third-quarter dividend of $0.70 per share. The company's assets under management rose by 9% to $247 billion, maintaining a strong capital position of $4.7 billion in total adjusted capital.
Barclays initiated coverage of Jackson Financial with an Overweight rating and set a price target of $109, reflecting confidence in the company's cash generation abilities and potential for capital deployment. The firm suggests that the company's current stock valuation does not fully reflect these financial strengths.
These recent developments indicate Jackson Financial's ongoing growth and stability, supported by a proactive hedging strategy and capital management initiatives. The company expects the sales momentum to continue, focusing on innovative annuity solutions and improving the digital experience for clients.
InvestingPro Insights
Jackson Financial Inc. (NYSE: JXN) appears to be in a strong financial position, which could support its expansion efforts in the annuity market. According to InvestingPro data, the company's market capitalization stands at $7.4 billion, reflecting its significant presence in the insurance industry.
The company's financial performance has been impressive, with a remarkable revenue growth of 692.2% over the last twelve months as of Q2 2024. This substantial growth aligns well with Jackson's strategic move to partner with JPMorganChase, potentially setting the stage for further expansion of its RILA product distribution.
InvestingPro Tips highlight that Jackson Financial has raised its dividend for 3 consecutive years, demonstrating a commitment to shareholder returns. This could be particularly attractive to investors seeking both growth and income in the financial services sector. The current dividend yield of 2.85% may appeal to income-focused investors looking at the annuity and insurance space.
Moreover, the company is trading at a low earnings multiple, with a P/E ratio of 3.16. This valuation metric suggests that the stock may be undervalued relative to its earnings potential, which could be of interest to value investors considering the company's growth trajectory and strategic partnerships.
For those interested in a deeper analysis, InvestingPro offers additional tips and insights, with 11 more tips available for Jackson Financial. These extra insights could provide valuable context for understanding the company's position in the evolving annuity market.
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