Jackson Financial Inc. (JXN): Business Model Canvas [Dec-2025 Updated]

You're digging into Jackson Financial Inc.'s engine room, and frankly, understanding their business model is key to seeing why they've maintained such stability, especially with the recent market shifts. As an analyst who's seen a few cycles, I can tell you their success hinges on managing complex retirement guarantees for a massive client base, supported by a fortress balance sheet-their RBC ratio was near 579% in Q3 2025. We've broken down the nine core components, from their $4.920 billion in trailing twelve-month revenue to the crucial role played by their 28,000 independent advisor partners. Keep reading; this canvas shows you exactly where the value is created.

Jackson Financial Inc. (JXN) - Canvas Business Model: Key Partnerships

You're mapping out the structure of Jackson Financial Inc. (JXN) as of late 2025, and the Key Partnerships block is where the company's distribution power and risk management backbone become clear. These aren't just names on a slide; they are the actual channels and counterparties that make the business run.

The distribution network is massive, relying heavily on external professionals to bring Jackson Financial's annuity products to market. The prompt outlines an approximate 28,000 partners, which represents the scale of the independent financial advisor network Jackson must support with tools and service. This network is augmented by specific, high-value alliances.

The strategic distribution alliance with JPMorgan Chase is a prime example of targeted growth. This partnership, established in late 2024, is specifically designed to offer the Jackson Market Link Pro II registered index-linked annuity (RILA) to the approximately 5,000 financial professionals within J.P. Morgan Wealth Management. This move is clearly aimed at accelerating RILA sales through a premier distribution channel.

Jackson Financial also relies on its internal asset management subsidiary, PPM America, Inc. (PPM), which acts as a key internal partner supporting product offerings. As of September 30, 2025, PPM America's Assets Under Management (AUM) stood at $90.1 billion, marking an 18% increase from the $76.7 billion managed as of September 30, 2024. This growth in AUM directly supports the profitability of spread products.

For risk transfer, Jackson Financial utilizes its wholly-owned captive reinsurer, Brooke Life Reinsurance Co., which was established in January 2024 to manage variable annuity guarantees and reinforce economic hedging capabilities. While older, significant risk transfer activity involved a 2020 agreement with Athene to fully reinsure $27.6 billion of fixed and fixed index annuity liabilities, the current structure leans on the internal captive for ongoing management.

Here's a quick look at the scale of the asset management partnership and the key distribution win:

Partner Type	Entity/Focus	Key Metric (as of Q3 2025)
Internal Asset Manager	PPM America, Inc. (PPM) AUM	$90.1 billion
Strategic Distribution Alliance	JPMorgan Chase Financial Professionals	Approximately 5,000
Captive Reinsurer	Brooke Life Reinsurance Co.	Manages Variable Annuity Guarantees

Technology providers form the essential infrastructure layer. Jackson Financial is pushing its digital transformation forward, with approximately 40 percent of its workloads running on the Microsoft Azure cloud as of mid-2025. Furthermore, the company leverages its own entity, Jackson Technology Solutions, as a Salesforce Partner, bringing over 10 years of experience in implementing and optimizing platforms like Financial Services Cloud to enhance its distribution and service capabilities.

The reliance on third parties for distribution and technology is extensive, as shown by the following:

• The independent financial advisor network is the primary sales engine, expected to number around 28,000 partners.
• Jackson added 500 advisors since launching its Market Link products, showing active growth within the distribution channel.
• The company's digital experience for financial professionals has been upgraded, featuring tools like Product Match Pro to help advisors align Jackson products with client needs.
• The use of Microsoft Azure helps drive consistency across channels by ensuring different systems access the exact same data via APIs.

Finance: draft 13-week cash view by Friday.

Jackson Financial Inc. (JXN) - Canvas Business Model: Key Activities

You're looking at the core engine of Jackson Financial Inc., the things they absolutely must do well to keep the business running and profitable as of late 2025. It's all about product design, managing the money, controlling risk, getting products to market, and managing shareholder capital.

Annuity product design and underwriting (VA, RILA, FIA)

Designing and selling the right mix of retirement products is central. The focus has clearly shifted toward spread products, which offer better income potential for Jackson Financial Inc. in the current interest rate environment.

Key sales figures from the third quarter of 2025 show the product mix in action:

Product Category	Q3 2025 Sales Amount	Q3 2025 Sales Change vs. Prior Year
Total Retail Annuity Sales	$5.4 billion	Up 2%
Variable Annuity (VA) Sales	$2.9 billion	Up 8%
Record Registered Index-Linked Annuity (RILA) Sales	$2.1 billion	Up 28%
Fixed and Fixed Index Annuity Sales	$444 million	Down 57% (from a strong prior year)

The success of RILA is notable; in the second quarter of 2025, RILA accounted for nearly one-third of total Retail Annuity sales, reaching $1.4 billion in sales that quarter. By September 30, 2025, the RILA product suite account balance grew to $18 billion.

Investment management of general account assets via PPM America

PPM America, the asset management subsidiary, is key for sourcing the higher-yielding assets needed to support the spread-based annuity products. This activity directly impacts the profitability of the in-force business.

Assets Under Management (AUM) for PPM America shows growth:

• PPM AUM as of September 30, 2025: $90.1 billion.
• PPM AUM as of June 30, 2025: $83.5 billion.
• PPM AUM growth from Q3 2024 to Q3 2025: 18%.

This growth in AUM, which includes both Jackson Financial Inc.'s general account and third-party assets, is a direct result of capabilities added at PPM America to source better-yielding assets.

Robust hedging and risk management of market guarantees

Managing the guarantees embedded in variable annuities and RILA products requires constant attention to hedging effectiveness and maintaining a strong capital buffer.

Capital strength metrics as of late 2025 demonstrate this focus:

• Estimated Risk-Based Capital (RBC) ratio at Jackson National Life Insurance Company (JNLIC): 579% as of September 30, 2025.
• The targeted minimum RBC ratio is 425%.
• Statutory Total Adjusted Capital (TAC) at JNL was $5.6 billion as of September 30, 2025.

Even with robust capital, market movements create volatility in hedging results; for instance, Jackson Financial Inc. experienced a $14 million net loss on hedging instruments supporting variable annuity and RILA businesses in the third quarter of 2025 due to equity market movements.

Managing extensive third-party distribution channels

Jackson Financial Inc. relies on a broad network of financial professionals to sell its products. Expanding this reach is a continuous activity.

Evidence of distribution network expansion includes adding over 500 new advisors since the launch of RILA 3.0. Furthermore, Institutional sales for the first nine months of 2025 reached $3.5 billion, indicating activity in that channel.

Capital management, including share repurchases and dividends

Returning capital to shareholders is a stated priority, supported by strong capital generation. This involves setting dividend levels and executing buyback programs.

Capital return activity for the nine months ending September 30, 2025:

Capital Return Metric	Amount / Value	Period
Total Capital Returned to Common Shareholders	$657 million	First Nine Months of 2025
Capital Returned to Common Shareholders	$210 million	Q3 2025
Common Share Repurchases	$154 million	Q3 2025
Common Dividends Paid	$56 million	Q3 2025
Declared Q4 2025 Cash Dividend per Common Share	$0.80	Q4 2025
Annualized Dividend	$3.20	Based on Q4 declaration

Management signaled confidence by approving a $1 billion increase in the share repurchase authorization. The common dividend payout ratio was reported at 43.78%. Total common shareholders' equity stood at $9.7 billion as of September 30, 2025, against total company assets of $353.558 billion for the same period.

Jackson Financial Inc. (JXN) - Canvas Business Model: Key Resources

You're looking at the core assets Jackson Financial Inc. relies on to deliver its value proposition in the retirement solutions space. These aren't just line items; they are the financial and intellectual muscle supporting their operations.

Financial Strength and Capital Buffers form a critical foundation. Jackson Financial Inc. maintains substantial regulatory capital, evidenced by its estimated Risk-Based Capital (RBC) ratio ending Q3 2025 at an estimated 579%. This is well above their minimum target of 425%. The operating company's Total Adjusted Capital (TAC) stood at $5.6 billion as of September 30, 2025. Furthermore, the holding company maintains significant liquidity, with cash and highly liquid securities totaling over $750 million at the end of Q3 2025, exceeding their minimum liquidity buffer of $250 million. This strong capital base is supported by free cash flow generation, with nearly $1 billion generated over the twelve months ending September 30, 2025.

The asset management subsidiary, PPM America, Inc., is another key financial resource, showing growth alongside Jackson Financial Inc.'s product offerings. As of September 30, 2025, PPM America's Assets Under Management (AUM) reached $90.1 billion. This AUM grew from $76.7 billion as of September 30, 2024.

Jackson Financial Inc.'s business is heavily reliant on its existing policyholder base, which represents a significant, stable asset:

• Large in-force book of annuity business, with an average retail AUM estimated at $249 billion.
• This in-force book is noted for consistently delivering healthy free cash flow, generating $216 million in Q3 2025 alone.

Intellectual capital centers around risk management and proprietary technology. Jackson Financial Inc. has a proprietary hedging and risk-modeling infrastructure. A key component of this is the captive reinsurer, Brooke Life Reinsurance Company ("Brooke Re"), established in January 2024 specifically to allow for economic hedging and stabilize capital generation. More recently, in August 2025, Jackson developed and released its proprietary Market Risk Vulnerability Index, a tool that evaluates investors' financial positioning against five key benchmarks.

Finally, the company's market standing is supported by its reputation and service delivery, which are critical for distribution and client retention. Jackson Financial Inc. has a brand reputation and history of award-winning service. For instance, the Service Center was recognized in March 2025 for winning the "Highest Customer Service - Financial Industry" award from Service Quality Measurement Group, Inc. (SQM) for achieving the highest first-call resolution rating in the market in 2024. The company has consistently received SQM recognition for over 16 years, as of their March 2025 announcement.

Here's a quick view of the key financial metrics supporting these resources:

Metric	Value as of Q3 2025 (Sept 30, 2025)
Estimated RBC Ratio	579%
Total Adjusted Capital (TAC)	$5.6 billion
PPM America AUM	$90.1 billion
Holding Company Liquidity	Over $750 million
12-Month Holding Company Free Cash Flow	Nearly $1 billion

If you're mapping out the next steps, Finance needs to confirm the Q4 2025 capital projection based on the Q3 performance by the end of the month.

Jackson Financial Inc. (JXN) - Canvas Business Model: Value Propositions

Retirement income security and wealth accumulation solutions

• Retail annuity sales totaled $5.4 billion in the third quarter of 2025.
• Total annuity assets under management (AUM) reached $252 billion as of December 31, 2024.
• PPM America AUM was $90.1 billion as of September 30, 2025.
• Adjusted operating return on equity attributable to common shareholders was 14% for the nine months ended September 30, 2025.

Diversified product suite to manage market volatility (RILA, VA, FIA)

You're looking at a clear shift in product focus, which is reflected in these sales numbers:

Product Category	Q3 2025 Sales Amount	Year-over-Year Growth
Registered Index-Linked Annuity (RILA)	$2.1 billion	28%
Variable Annuity (VA)	$2.9 billion	8%
Fixed and Fixed Index Annuity (FIA)	$444 million	Decrease of 57% from Q3 2024

The RILA account balance approached $18 billion at the end of Q3 2025.

Financial stability backed by over $5.3 billion in total adjusted capital

Jackson National Life Insurance Company's Statutory Total Adjusted Capital (TAC) ended the third quarter of 2025 at $5.6 billion. The estimated Risk-Based Capital (RBC) ratio at Jackson National Life Insurance Company ended Q3 2025 at an estimated 579%. This is substantially above the minimum target of 425%. Total common shareholders' equity was $9.7 billion as of September 30, 2025.

Clarity and simplification of complex retirement planning

• Jackson Financial Inc. is committed to helping clarify the complexity of retirement planning for financial professionals and their clients.
• The company strives to reduce the confusion that complicates retirement planning through its range of annuity products and streamlined experiences.
• The company returned $210 million to common shareholders in the third quarter of 2025.
• The full-year 2025 capital return target range is $700 million to $800 million, which the company expects to exceed.

Enhanced digital tools for financial professionals (Product Match Pro)

• The new Product Match Pro tool was launched to help financial professionals identify which Jackson product best aligns with a client's retirement planning goals.
• The tool provides personalized content and self-service enhancements on Jackson.com.
• Financial professionals can select up to a maximum of 99 investments and adjust options or allocations up to 25 times each contract year without transfer fees using some tools.

Finance: draft 13-week cash view by Friday.

Jackson Financial Inc. (JXN) - Canvas Business Model: Customer Relationships

You're focused on how Jackson Financial Inc. maintains its connection with the financial professionals who distribute its retirement solutions. The core of this is definitely an advisor-centric model, meaning the entire service structure is built around making the advisor's job easier and more effective.

This high-touch support is crucial in the complex annuity space. Jackson Financial Inc. emphasizes providing an adequate solution whether the advisor prefers a commission or fee based arrangement, which supports the growth of the Registered Investment Advisor (RIA) space. Advisory sales, for instance, were reported at an annual run rate of more than $1,000,000,000 over the twelve months ending in March 2025.

The commitment to the advisor channel is reflected in sales performance, which directly ties to the strength of these relationships. Consider the recent retail annuity sales figures:

Period	Total Retail Annuity Sales	Year-over-Year Change
Q1 2025	$4.0 billion	9% increase
Q2 2025	$4.4 billion	4% increase
Q3 2025 vs. Q2 2025	Not specified	22% increase in retail annuity sales

To bridge the gap between digital efficiency and personalized service, Jackson Financial Inc. supports its advisors with dedicated personnel. This structure ensures that when an advisor needs more than a platform can offer, local, tailored support is available.

The relationship is now a blend of digital efficiency and human interaction. Jackson Financial Inc. launched a new digital experience for financial professionals in July 2025, which includes specific tools designed to streamline business processes. The adoption rate for the digital platform saw a 10% increase in 2025.

Key digital and support elements include:

• Self-service digital platforms for tracking business and accessing resources.
• The Product Match Pro tool to align client needs with Jackson Financial Inc. products.
• The Find Your Wholesaler feature to connect professionals with local Jackson representatives for tailored support.
• A history of award-winning service, referencing the SQM Call Center Awards Program for 2004 and 2006-2024.

The overarching goal is fostering long-term, trust-based relationships for retirement planning, which is supported by the company's stated commitment to helping clarify the complexity of retirement planning for financial professionals and their clients. This focus on clarity and service is a key part of maintaining trust as the company navigates a market where the projected consensus EPS for 2025 is 20.55.

Proactive communication on market and product changes is embedded in this service model. The company routinely uses its investor relations website as a primary channel for disclosing key information, alongside press releases and SEC filings, ensuring advisors have access to the latest details to serve their clients effectively.

Finance: draft comparison of Q3 2025 advisor support costs versus Q3 2024 by Monday.

Jackson Financial Inc. (JXN) - Canvas Business Model: Channels

You're looking at how Jackson Financial Inc. gets its products-the annuities and spread products-into the hands of customers. Their distribution is definitely a multi-pronged approach, relying heavily on established relationships with financial professionals.

Independent Broker-Dealers and Wirehouses

This channel represents the traditional backbone for many annuity providers. Jackson Financial leverages its 'industry-leading distribution network' to reach advisors working within these large firms. While specific revenue splits by channel aren't always broken out this granularly in public filings, the overall health of this segment is reflected in the aggregate retail sales figures. For instance, retail annuity sales hit $4.0 billion in the first quarter of 2025 and then increased to $4.4 billion in the second quarter of 2025. This shows the continued flow of product through these established intermediaries.

Registered Investment Advisors (RIAs)

The focus on the RIA segment is clear, as Jackson Financial is actively engaged in this space. The growth rate for the independent RIA advisor count between year-end 2023 and year-end 2024 was reported at 8.7%. This segment is crucial for selling products like the Registered Index-Linked Annuity (RILA), which management noted now accounts for nearly one-third of total Retail Annuity sales as of Q2 2025. Variable annuity sales, another key product for advisors, reached $2.7 billion in Q1 2025.

Independent Marketing Organizations (IMOs)

IMOs act as specialized intermediaries, helping to onboard and support a large network of independent agents and advisors. Jackson Financial's commitment to a 'well-known brand among distributors and advisors' suggests a strong reliance on these organizations to efficiently scale their reach beyond direct relationships. The company's strategy emphasizes diversification across its product mix, which IMOs help facilitate by presenting a broader suite of offerings to their respective advisor pools.

Direct digital portal for financial professionals

While the search results emphasize the use of the investor relations website for investor disclosures, the underlying technology supporting advisor engagement is key. Jackson Financial points to 'streamlined experiences' as part of its value proposition, which implies a digital interface for professionals to manage business. The ongoing investment in 'distribution technology' mentioned by management supports this digital channel, aiming to make it easier for advisors to transact and service business.

Institutional sales team for spread products

This team targets a different client base, focusing on institutional fixed-income assets, often through PPM America, Inc. (PPM), the asset management subsidiary. This channel is distinct from retail annuity sales. The Institutional Products segment showed strong performance, with pretax adjusted operating earnings of $31 million in the third quarter of 2025. The total account value for this segment stood at $10.9 billion as of September 30, 2025, a significant increase from $7.9 billion in the third quarter of 2024. Net flows into this area were $447 million in Q3 2025.

Here's a quick look at the latest quantified segment performance metrics as of late 2025:

Channel/Segment Focus	Key Metric	Latest Reported Value (2025)
Retail Annuity Sales (Aggregate)	Q2 2025 Sales	$4.4 billion
RILA Sales (Part of Retail)	Share of Total Retail Annuity Sales	Nearly one-third
Institutional Products (Spread Products)	Total Account Value (as of 9/30/2025)	$10.9 billion
Institutional Products (Spread Products)	Q3 2025 Net Flows	$447 million
Asset Management (PPM AUM)	AUM (as of 9/30/2025)	$90.1 billion

The overall distribution strength is supported by the scale of the asset management arm; PPM's AUM reached $90.1 billion as of September 30, 2025, which is up 18% from the third quarter of 2024. This scale helps support the spread products offered through the institutional team.

You should review the Q3 2025 Investor Presentation to see if management provided a more detailed breakdown of the $4.4 billion in Q2 retail sales across the Broker-Dealer, RIA, and IMO channels, as that level of detail is often reserved for supplemental materials. Finance: draft 13-week cash view by Friday.

Jackson Financial Inc. (JXN) - Canvas Business Model: Customer Segments

You're looking at the core client base for Jackson Financial Inc. (JXN) as of late 2025. Honestly, the business model clearly segments its focus across the distribution channel and the end-client need, which is smart for an annuities-focused firm.

Mass affluent and affluent retail investors nearing retirement

This group drives the bulk of the new money flow, primarily through the annuity suite. We see this in the sales figures. For the third quarter of 2025, total retail annuity sales hit $5.4 billion, which was up 2% compared to the third quarter of 2024. This segment is clearly leaning into products offering protection and growth, as evidenced by the Registered Index-Linked Annuity (RILA) sales, which were a record $2.1 billion in Q3 2025, marking a 28% jump from the prior year's third quarter. That's a concrete signal about what these near-retirees want right now.

The product mix for this segment in Q3 2025 looked like this:

• Variable annuity sales: $2.9 billion.
• Record RILA sales: $2.1 billion.
• Fixed and fixed index annuity sales: $444 million.

Financial professionals (advisors) who distribute the products

This is a critical intermediary segment; they are the gatekeepers to the retail dollars. Jackson Financial Inc. is committed to helping clarify retirement planning for these professionals and their clients. While we don't have a count of the total advisors, we can look at the institutional side, which is heavily supported by their asset management arm, PPM America, Inc. (PPM). The success in institutional sales suggests strong relationships with sophisticated financial entities that use PPM's capabilities.

Institutional clients seeking spread-lending products

This segment is showing significant traction, likely driven by PPM America's ability to source higher-yielding assets to support spread-based products. The growth here is impressive over the nine-month period ending September 30, 2025. Sales were up 142% to $3.5 billion for the nine months ended September 30, 2025, compared to the same period in 2024. For just the third quarter of 2025, institutional sales reached $1 billion, a 34% increase year-over-year. PPM's Assets Under Management (AUM) reflects this success, hitting $90.1 billion as of September 30, 2025, which is an 18% increase from the third quarter of 2024. That's defintely a key growth engine.

Existing policyholders in the Closed Life and Annuity Blocks segment

This block represents the legacy business, which is managed for capital efficiency and spread income, rather than new sales growth. The segment's pretax adjusted operating income was $15 million in the third quarter of 2025, an improvement from $7 million in the third quarter of 2024. In the second quarter of 2025, the income was $22 million, down from $35 million in the year-ago quarter. This segment is managed for the spread income it generates on the in-force business, which is a steady, albeit fluctuating, source of earnings.

Individuals seeking guaranteed lifetime income solutions

This is the core value proposition for many of Jackson Financial Inc.'s products, particularly the variable annuities with living benefits and RILAs. The total retail annuity sales of $5.4 billion in Q3 2025 speak to the ongoing demand from individuals prioritizing guaranteed income streams as they approach or enter retirement. The company's total assets as of September 30, 2025, stood at $353.558B, representing the pool of assets supporting these guarantees.

Here's a quick look at the scale of the business supporting these segments as of the third quarter of 2025:

Metric	Value (Q3 2025)	Comparison/Context
Total Assets	$353.558B	As of September 30, 2025.
PPM AUM	$90.1 billion	Up 18% from Q3 2024.
Total Retail Annuity Sales	$5.4 billion	For the quarter.
Institutional Sales (YTD)	$3.5 billion	Up 142% for the nine months ended September 30, 2025.
Closed Life & Annuity Blocks Income	$15 million	Pretax adjusted operating income for Q3 2025.

Finance: draft 13-week cash view by Friday.

Jackson Financial Inc. (JXN) - Canvas Business Model: Cost Structure

You're looking at the cost side of Jackson Financial Inc.'s business, which is heavily weighted toward fulfilling promises made to policyholders. For an insurer and annuity provider, the largest costs are inherently tied to the products themselves, not just overhead.

The most significant cost component is Policyholder benefits and claims. Looking at the balance sheet as of September 30, 2025, the Reserves for future policy benefits and claims payable stood at $10,912 million. This number reflects the massive liability Jackson Financial carries to cover future payouts on its in-force annuity contracts. To give you a sense of the drivers affecting this, policyholder behavior in Q3 2025 showed an all-in surrender rate composed of:

• Full surrenders: 7%
• Withdrawals: 4%
• Death benefits: 1%

This surrender rate uptick was influenced by strong equity market returns.

Next up are Distribution expenses, which fund the sales force that brings in the premiums. While I don't have the exact commission expense for Q3 2025, we can gauge the scale of the activity driving these costs. Retail annuity sales for the third quarter of 2025 reached $5.4 billion. That's a lot of product moving through the distribution channels, including record Registered Index-Linked Annuity (RILA) sales of $2.1 billion in that same quarter.

For General and administrative (G&A) expenses, the impact is often seen within the Corporate and Other segment, which houses corporate overhead. For the third quarter of 2025, the pretax adjusted operating loss for Corporate and Other was $(35) million. Honestly, that loss was actually an improvement, as it was primarily due to lower general and administrative expense compared to the $(71) million loss reported in the third quarter of 2024. The total Non-interest Expense for the nine months ending September 30, 2025, was reported as $4.29 billion, though this aggregates many costs beyond just G&A.

Regarding Investment in technology and digital platform development, direct spending figures aren't explicitly broken out in the high-level summaries, but the results show where capabilities are being added. The growth in Institutional sales, which hit $1 billion in Q3 2025, is supported by capabilities added at PPM America, Inc. (PPM), their asset management subsidiary, to source higher yielding assets. This suggests ongoing investment in the infrastructure supporting these specialized product capabilities.

Finally, costs associated with the proprietary hedging program are critical for managing the risk embedded in variable and RILA products. For the third quarter of 2025, Jackson Financial reported a $14 million net loss on hedging instruments supporting the variable annuity and RILA businesses, largely due to equity market movements. This contrasts with the second quarter of 2025, where the hedging program reported a consolidated net hedge gain of $61,000,000. It's definitely a volatile line item, directly tied to market performance.

Here's a quick look at some key Q3 2025 financial metrics related to the cost and earnings structure:

Metric	Amount (Q3 2025)	Context/Period
Reserves for future policy benefits and claims payable	$10,912 million	Balance Sheet as of September 30, 2025
Retail Annuity Sales	$5.4 billion	Q3 2025 Sales Volume
Corporate and Other Pretax Adjusted Operating Loss (due to lower G&A)	$(35) million	Q3 2025
Net Hedging Loss (Variable Annuity/RILA)	$14 million	Q3 2025
Adjusted Operating Earnings (Consolidated)	$433 million	Q3 2025

Jackson Financial Inc. (JXN) - Canvas Business Model: Revenue Streams

You're looking at how Jackson Financial Inc. actually brings in the money, which is almost entirely through selling and managing annuities. Their revenue streams are clearly segmented between retail and institutional channels, with income derived from both asset management fees and the spread earned on their investment portfolios.

The core of the revenue generation is tied directly to the volume of annuity products sold and the total Assets Under Management (AUM) they maintain. For the twelve months ended September 30, 2025, Jackson Financial Inc. reported total revenue of $4.920 billion.

Here is a breakdown of the key components driving that revenue, focusing on the third quarter of 2025 performance:

• Fee income from variable annuity Assets Under Management (AUM). This income stream saw a positive lift in Q3 2025, with average variable annuity balances increasing by $10 billion from the second quarter, supporting an 8% quarter over quarter increase in third-quarter fee income.
• Spread income from Registered Index-Linked Annuities (RILA) and fixed products. Growth in average RILA AUM was a primary driver for higher spread income contributing to the Retail Annuities segment's pretax adjusted operating earnings of $494 million in Q3 2025.

The sales figures for the third quarter ended September 30, 2025, show the immediate top-line contribution from new business:

Revenue Source	Q3 2025 Sales Amount
Retail annuity sales	$5.4 billion
Institutional sales	$1 billion

Digging into the retail sales, you can see the product mix that generated the $5.4 billion in retail annuity sales for the third quarter of 2025:

• Variable annuity sales were $2.9 billion in the third quarter of 2025, marking an 8% increase from the third quarter of 2024.
• Record registered index-linked annuity (RILA) sales hit $2.1 billion in the third quarter of 2025, which was up 28% from the third quarter of 2024.
• Fixed and fixed index annuity sales were $444 million in the third quarter of 2025.

The Institutional segment also contributed significantly, with sales reaching $1 billion in the third quarter of 2025, which was up 34% compared to the third quarter of 2024. This segment's performance is supported by capabilities added at PPM America, Inc. (PPM), Jackson Financial Inc.'s asset management subsidiary, to source higher yielding assets. The Institutional Products segment reported pretax adjusted operating earnings of $31 million in Q3 2025, driven by higher spread income reflecting significant AUM growth.

Here's a quick look at the drivers for the Retail Annuities segment's pretax adjusted operating earnings of $494 million in Q3 2025:

• Higher spread income from growth in average RILA AUM.
• Higher fee income from growth in average variable annuity AUM.