Jackson Financial Q2 profit jumps on favorable hedging, annuity sales growth
JXN•Drivers behind the quarter
- RETAIL ANNUITIES - Higher average RILA and FIA AUM drove spread income growth, while retail annuity sales rose 34% yr/yr
- ASSET MANAGEMENT CAPABILITIES - Enhanced asset sourcing at PPM and partnership with TPG supported robust spread product sales and AUM growth
Outlook and analyst coverage
- Company did not provide specific guidance for the current quarter or full year
- The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
- The average consensus recommendation for the multiline insurance & brokers peer group is "buy"
- Wall Street's median 12-month price target for Jackson Financial Inc is $134.50, about 10% above its July 31 closing price of $122.28
- The stock recently traded at 5 times the next 12-month earnings vs. a P/E of 5 three months ago
Q2 profit and operating earnings jump
- US annuity provider's Q2 net income rose sharply, while adjusted operating EPS hit a record
- Adjusted operating earnings rose 47% yr/yr, driven by higher spread and fee income
- Company returned $290 mln to shareholders via buybacks and dividends, up 34% yr/yr
