Riding high on the flight to quality
October 23, 2013 -LANSING, Mich.–(BUSINESS WIRE)–Jackson National Life Insurance Company® (Jackson) announced today the company is approaching the upper range for calendar year 2013 for total premium from variable annuities (VAs) that offer optional guaranteed benefits. Consistent with prior years, Jackson will manage the volume of its VA business in line with the overall growth of its balance sheet.
“Jackson is experiencing another very successful year, once again benefiting from a flight to quality in the variable annuity marketplace,” said Mike Wells, Jackson president and chief executive officer. “Strong demand for our variable annuity products compelled Jackson to manage new business volumes near the end of 2012, and the same is true for 2013. As part of our active risk management program, we seek to balance our guaranteed and non-guaranteed business to avoid a concentration of exposure to any single product type in any one year. Due to our disciplined approach to risk management, Jackson’s financial position remains strong. Our variable annuity products are priced to provide value to the customer and cover the costs of hedging for the current economic environment.”
“The variable annuity market remains attractive for Jackson and we are committed to writing new business within our overall appetite for risk,” Wells continued. “Being consistent and disciplined in our risk management practices enables us to maintain the confidence and trust of all of our stakeholders.”
To manage sales volumes, Jackson will no longer accept new 1035 exchange business or qualified transfers of assets for VAs that offer optional guaranteed benefits as of 4 p.m. Eastern Daylight Time on Friday, October 25, 2013. As of Monday, December 16, 2013, Jackson plans to resume accepting new 1035 exchange business and qualified transfers of assets. No limitation will be placed on new 1035 exchange business or qualified transfers of assets for Jackson’s Elite Access® product or for Jackson’s fixed or fixed index annuity products.
“We are actively contacting our distribution partners to alert them that Jackson is taking action to manage our sales volumes of VA products that offer optional guaranteed benefits, as we did last year,” said Clifford Jack, executive vice president and head of retail for Jackson. “Our goal is to manage production over the next few weeks with as little disruption as possible to our partners and their clients. And, with no limitation on sales of Elite Access, advisors and their clients will still be able to choose a Jackson variable annuity investment platform that offers a variety of traditional and alternative investment options.”
During 2013, all four primary rating agencies — A.M. Best, Standard & Poor’s, Fitch Ratings and Moody’s Investors Service, Inc. — affirmed Jackson’s financial strength ratings. Jackson has maintained the same financial strength ratings for more than 10 years. As of October 21, 2013, Jackson had the following ratings:1
- A+ (superior) — A.M. Best financial strength rating, the second-highest of 16 rating categories;
- AA (very strong) — Standard & Poor’s insurer financial strength rating, the third-highest of 21 rating categories;
- AA (very strong) — Fitch Ratings insurer financial strength rating, the third-highest of 19 rating categories;
- A1 (good) — Moody’s Investors Service, Inc. insurance financial strength rating, the fifth-highest of 21 rating categories.
1Financial strength ratings do not apply to the principal amount or investment performance of the separate account or underlying investments of variable products.
About Jackson National Life Insurance Company
Jackson is a leading provider of retirement solutions for industry professionals and their clients. The company offers a diverse range of products including variable, fixed and fixed index annuities designed for tax-efficient accumulation and distribution of retirement income for retail customers, and fixed income products for institutional investors. Jackson subsidiaries and affiliates provide specialized asset management and retail brokerage services. With $173.6 billion in assets*, Jackson prides itself on product innovation, sound corporate risk management practices and strategic technology initiatives. Focused on thought leadership and education, the company develops proprietary research, industry insights and financial representative training on retirement planning and alternative investment strategies. Jackson is also dedicated to corporate social responsibility and supports charities focused on helping children and seniors in the communities where its employees live and work. For more information, visit www.jackson.com.