Jackson Financial’s second quarter results generated a positive market response, reflecting management’s focus on growing its product mix and strengthening capital generation. CEO Laura Prieskorn highlighted robust gains in the Registered Index-Linked Annuity (RILA) segment and improvements in variable annuity net outflows, while the company’s disciplined asset allocation into higher-yielding classes contributed to greater spread income. Prieskorn emphasized, “RILA now accounts for nearly one-third of total Retail Annuity sales, underscoring Jackson’s leadership in meeting the growing demand for solutions that offer participation in equity market growth with downside protection.”
Is now the time to buy JXN? Find out in our full research report (it’s free).
Jackson Financial (JXN) Q2 CY2025 Highlights:
- Revenue: $1.75 billion vs analyst estimates of $1.75 billion (1.4% year-on-year growth, in line)
- Adjusted EPS: $4.87 vs analyst estimates of $4.64 (5% beat)
- Market Capitalization: $6.38 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Jackson Financial’s Q2 Earnings Call
- Taylor Alexander Scott (Barclays) asked about priorities for excess capital usage. CFO Don Cummings said Jackson seeks to balance investing in business growth with capital returns, emphasizing both are possible in tandem.
- Thomas George Gallagher (Evercore) inquired about business mix shifts and possible risk transfers. CEO Laura Prieskorn said strategic partnerships or risk transfer would be considered if they enhance shareholder value, while Cummings noted openness to M&A and further diversification.
- Gallagher (Evercore) follow-up: Gallagher asked about RILA product features and competitive positioning. President Chris Raub highlighted the introduction of income options and principal protection, noting strong adviser adoption and competitive market standing.
- Suneet Laxman L. Kamath (Jefferies) questioned the capital efficiency of new RILA products with full principal protection. Cummings assured that capital requirements remain light and features are aligned with industry standards.
- Ryan Joel Krueger (KBW) probed possible use of captive reinsurers for fixed annuity growth. Cummings confirmed Jackson would consider both domestic and offshore captive vehicles to optimize capital usage and manage new business strain.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will monitor (1) the pace of RILA and fixed annuity sales expansion, especially as new product features are adopted; (2) improvements in net outflows and retention rates in the variable annuity portfolio; and (3) capital deployment decisions, including the potential for acquisitions or risk transfer arrangements. Execution on technology enhancements and adviser engagement will be additional markers of progress.
Jackson Financial currently trades at $91.55, up from $86.50 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it’s free).
Our Favorite Stocks Right Now
Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.
The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.