Jackson(R) Reports Record Retail Sales for Second Consecutive Quarter

October 28, 2009 9:28 AM EDT

Strong Variable Annuity Sales Drive Third Quarter Retail Sales Up 44 Percent Year Over Year

LANSING, Mich.--(BUSINESS WIRE)-- During the third quarter of 2009, Jackson National Life Insurance Company(R) (Jackson) generated record retail sales and deposits of $4.3 billion, an increase of 28 percent over the second quarter of 2009, and 44 percent higher than the third quarter of 2008.1 The third quarter of 2009 was the second consecutive quarter during which Jackson set a retail sales record. Retail sales and deposits during the first nine months of 2009 of $10.4 billion were up 17 percent over the same period in 2008.

"Given the significant disruption in the US annuity market brought about by the financial crisis, advisers and their clients are increasingly placing business with providers that have demonstrated financial stability and consistency in their product suite," said Clark Manning, Jackson's president and chief executive officer. "Jackson has clearly benefited from this flight to quality."

During the first nine months of 2009, Jackson, an indirect wholly owned subsidiary of the United Kingdom's Prudential plc (NYSE: PUK), generated $6.7 billion in variable annuity (VA) sales, a 32-percent increase from the $5.1 billion recorded during the same period of 2008. Third quarter VA sales increased 93 percent year over year to more than $2.9 billion, a company record.

Jackson ranked fourth in new VA sales during the second quarter of 2009, with a market share of 7.2 percent, up from a ranking of 12th and a market share of 4.3 percent during the second quarter of 2008.2 During the first half of 2009, Jackson ranked second in variable annuity net flow (total premium minus surrenders, exchanges and annuitizations) and had the lowest outflows, as a percentage of VA inflows, in the industry.3

Fixed index annuity (FIA) sales of $1.6 billion during the first three quarters of the year were more than double the $617 million recorded during the first nine months of 2008. Jackson's third quarter FIA sales of $769 million were the highest quarterly total in company history. Sales of traditional fixed annuities during the first nine months of 2009 were $1.3 billion, compared to $2.2 billion during the same period of the prior year.

"The annuity industry is consolidating to the strongest players, and this consolidation has contributed to a substantial increase in Jackson's distribution relationships," said Clifford Jack, executive vice president and chief distribution officer for Jackson. "We've experienced a large influx of new advisers this year, which has driven significant increases in market share for Jackson, particularly in variable annuities."

During the first nine months of 2009, Jackson appointed nearly 18,000 new advisers to sell its products, up 43 percent over the same period in 2008. Jackson has also reached a distribution agreement with Merrill Lynch, which commenced in October 2009.

In September, Standard & Poor's was the fourth rating agency to affirm Jackson's financial strength ratings in 2009. In March, Moody's Investors Service and Fitch Ratings affirmed Jackson's financial strength ratings, and A.M. Best affirmed Jackson's financial strength rating in July. Jackson has maintained the same financial strength ratings for more than six years. As of September 30, 2009, Jackson was rated:

    --  A+ (superior) by A.M. Best
    --  AA (very strong) by Standard & Poor's
    --  AA (very strong) by Fitch Ratings
    --  A1 (good) by Moody's Investors Service, Inc.

"The affirmations of Jackson's financial strength ratings validate the disciplined approach we have always taken in our product pricing, risk management philosophy and overall business strategy," said Manning. "Jackson's Long-Term Smart(R) perspective has served us well, both from a competitive standpoint and in the stability and consistency we offer our customers."

During the first nine months of 2009, Jackson sold $39 million in life insurance products, compared to $45 million during the same period of 2008. Jackson did not sell any institutional products during the first nine months of 2009, as the company redirected available capital to support higher-margin annuity sales. Jackson participates in the institutional market on an opportunistic basis when capital is available and margins are attractive.

Curian Capital, Jackson's separately managed accounts subsidiary, accumulated $782 million in deposits during the first nine months of 2009, compared to $940 million during the same period of the prior year. Third quarter deposits of $379 million represented the highest quarterly total in company history, up 44 percent over the second quarter of 2009 and 39 percent over the third quarter of 2008. As of September 30, 2009, Curian's assets under management totaled $3.3 billion, up from $2.6 billion at the end of 2008.

"Baby Boomers are increasingly seeking professional advice to help recover the losses suffered during the recession," Jack said. "With the strong growth of our distribution relationships in advice-based channels, Jackson is well-positioned to benefit from this trend."

1Deposits from retail mutual funds and Jackson's subsidiary Curian Capital have been included in Jackson's retail sales and deposits figures. Retail sales and deposits exclude sales of institutional products -- guaranteed investment contracts, funding agreements and medium-term notes.

2Source: The Morningstar Annuity Research Center, Second Quarter 2009 Results and Second Quarter 2008 Results. Jackson ranked fourth out of 37 companies in second quarter 2009 and 12th out of 38 companies in second quarter 2008.

3Source: The Morningstar Annuity Research Center, First Quarter 2009 and Second Quarter 2009 Net Flow Reports. Jackson ranked second out of 23 companies during the first half of 2009 in VA net flow and first out of 23 companies during the first half of 2009 for the lowest level of outflows as a percentage of VA inflows.

About Jackson National Life Insurance Company

With nearly $77 billion in assets (IFRS unaudited)*, Jackson National Life Insurance Company is an industry leader in variable, fixed and fixed index annuities. The company also offers life insurance and institutional products. Jackson markets its products in 49 states and the District of Columbia through independent and regional broker-dealers, financial institutions and independent insurance agents. Jackson's subsidiary, Jackson National Life Insurance Company of New York(R), similarly markets products in the state of New York. Through its affiliates and subsidiaries, Jackson also provides asset management and retail brokerage services. For more information, visit www.jackson.com.

*Jackson has nearly $77 billion in total IFRS assets and nearly $68 billion in IFRS policy liabilities set aside to pay primarily future policyowner benefits (as of 6/30/09). International Financial Reporting Standards (IFRS) is a principles-based set of international accounting standards indicating how transactions and other events should be reported in financial statements. IFRS are issued by the International Accounting Standards Board in an effort to increase global comparability of financial statements and results. IFRS is used by Jackson's parent, Prudential plc, to report the Group's financial results.

Before investing, investors should carefully consider the investment objectives, risks, charges and expenses of the variable insurance product, including its underlying investment options. The current prospectus (or for the variable insurance products, the contract prospectus and underlying fund prospectuses, which are contained in the same document) provides this and other important information. Please contact your representative or the Company to obtain the prospectus(es). Please read the prospectus(es) carefully before investing or sending money.

Annuities and life insurance products are issued by Jackson National Life Insurance Company (Home Office: Lansing, Michigan) and Jackson National Life Insurance Company of New York (Home Office: Purchase, New York). Variable products are distributed by Jackson National Life Distributors LLC. May not be available in all states and state variations may apply. These contracts have limitations and restrictions, including possible withdrawal charges, recapture charges and excess interest adjustments. Contact your representative or the Company for more information.

Please remember that a Jackson annuity is intended to be a long-term, tax-deferred vehicle for retirement. An annuity's earnings are taxable as ordinary income when withdrawn and, if taken before age 59 1/2, may be subject to a 10% federal tax penalty. Variable annuities involve investment risks and may lose value.

Jackson National Life Insurance Company is an indirect subsidiary of Prudential plc, a company incorporated and with its principal place of business in the United Kingdom. Prudential plc and its affiliated companies constitute one of the world's leading financial service groups. It provides insurance and financial services directly and through its subsidiaries and affiliates throughout the world. It has been in existence for over 160 years and had more than $403 billion in assets under management as of June 30, 2009. Prudential plc is not affiliated in any manner with Prudential Financial, Inc., a company whose principal place of business is in the United States of America.

The following cautionary statement is included to make applicable and take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 for any forward-looking statements made by, or on behalf of, the Company. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements which are other than statements of historical facts. However, as with any projection or forecast, forward-looking statements are inherently susceptible to a number of risks and uncertainties and actual results and events could differ materially from those currently being anticipated as reflected in such forward-looking statements. There can be no assurance that management's expectations, beliefs or projections will result or be achieved or accomplished.

    Source: Jackson National Life Insurance Company

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