A retirement-focused financial services company that sells annuities — products that pay retirees a steady stream of income — through a large network of advisors and investment firms. Founded in 1961 in Jackson, Michigan, it is named after Andrew Jackson, the seventh U.S. president, and grew under British insurer Prudential plc before being spun off as an independent company in 2021. Its annuity products include Elite Access.
Core operating earnings rose 52% on higher spread and fee income, but a $2.1B net outflow in Retail Annuities persists.
Core operating earnings rebounded, rising 52% from a year ago. was $168 million and was $9.16, driven by a $155 million increase in and an $81 million rise in fee income within the Retail Annuities . The core business is strengthening, but the $2.1 billion quarterly net outflow of customer funds remains a drag on .
Key takeaways
Pretax adjusted operating earnings, which exclude market-driven derivative swings, rose 52% to $618 million from $406 million a year ago, driven by the Retail Annuities .
Retail Annuities pretax adjusted operating earnings grew 49% to $621 million, fueled by a $155 million increase in from higher invested assets and an $81 million rise in fee income from higher average values.
Total Retail Annuity sales rose 34% to $5.9 billion, led by RILA and fixed index annuity sales, but remained negative at an outflow of $2.1 billion due to elevated variable annuity surrenders.
Section summaries
Management's Discussion and Analysis
Pretax adjusted operating earnings rose 52% to $618M in Q2 2026, driven by higher spread income and fee income in Retail Annuities.
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Consolidated increased to $618 million in Q2 2026 from $406 million in Q2 2025, primarily due to growth in the Retail Annuities .
The company returned $290 million to common shareholders in the quarter through $63 million in dividends and $227 million in share repurchases, and issued $750 million in new senior notes, increasing by 36% from the prior quarter to $2.8 billion.
swung to a $655 million gain from a $179 million gain a year ago, as the net derivative and investment gains that flow through the income statement were more favorable this period.
rose 58% to $1.8 billion, and holding company was $287 million, supported by $325 million in dividends and distributions from subsidiaries.
What changed
The prior quarter's watch item on Retail Annuities is partially resolved: the $2.1 billion outflow in Q2 2026 is a slight improvement from the $2.2 billion outflow a year ago, but the 31% sales increase to $5.3 billion in Q1 has not yet translated into a narrower outflow.
The durability of the increase is confirmed for now: the $155 million rise in Q2 2026 follows a $109 million increase in Q1 2026, showing the benefit of higher-yielding bonds replacing maturing investments is persisting.
The impact of new NAIC economic scenarios on statutory capital, flagged in the prior quarter, remains an open risk with no update provided in this filing.
The pace of share repurchases accelerated to $227 million in Q2 from $172 million in Q1, keeping the company on track toward the upper end of its $900 million to $1.1 billion annual target, even after the $500 million TPG stock issuance.
What to watch
Whether Retail Annuities can narrow from the $2.1 billion quarterly outflow, and whether the $5.9 billion in quarterly sales can push the toward positive net flows in the second half of 2026.
The trajectory of fee income in Q3, which rose $81 million this quarter on higher average values, and whether equity market movements in the third quarter sustain or reverse that benefit.
The impact of the new NAIC economic scenarios for statutory reserves and required capital, effective January 1, 2026, on Jackson's statutory surplus and , which the company warns could materially increase volatility.
The use of proceeds from the $750 million senior notes issuance and its effect on holding company liquidity and , given that rose to $2.8 billion.
Retail Annuities grew 49% to $621 million, fueled by a $155 million increase in from higher invested assets and an $81 million rise in fee income from higher average values.
Total Retail Annuity sales rose 34% to $5.9 billion in Q2 2026, led by strong RILA and fixed index annuity sales, while remained negative at -$2.1 billion due to elevated variable annuity surrenders.
Net investment income, excluding funds withheld assets, increased 48% to $727 million, reflecting higher income from debt securities on a larger invested asset base.
The company returned $290 million to common shareholders in Q2 2026 through $63 million in dividends and $227 million in share repurchases, and issued $750 million in new senior notes.
at the holding company was $287 million in Q2 2026, supported by $325 million in dividends and distributions from subsidiaries.
Quantitative and Qualitative Disclosures About Market Risk
There have been no material changes to the quantitative and qualitative disclosures about market risk described in the section titled “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Quantitative and Qualitative Disclosures About Market Risk…
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There have been no material changes to the quantitative and qualitative disclosures about market risk described in the section titled “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Quantitative and Qualitative Disclosures About Market Risk” previously disclosed in Part II, Item 7A. Quantitative and Qualitative Disclosures about Market Risk in our 2025 Annual Report.
We discuss in this report, in our 2025 Annual Report, and in our other filings with the SEC, various risks that may materially affect our business. In addition, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Forward-Looking Statement…
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We discuss in this report, in our 2025 Annual Report, and in our other filings with the SEC, various risks that may materially affect our business. In addition, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Forward-Looking Statements - Cautionary Language” included herein. There have been no material changes to our risk factors discussed in our 2025 Annual Report.