Jackson Financial Inc (JXN) 2024 Q2 法說會逐字稿

Hello, everyone, and welcome to the Jackson Financial Inc., 2Q 2024 earnings call. My name is Charlie, and I'll be coordinating the call today. (Operator Instructions)

大家好，歡迎參加 Jackson Financial Inc. 2024 年第二季財報電話會議。我叫查理，今天我將協調通話。（操作員說明）

I'll now hand over to our host Liz Werner, Head of Investor Relations. Liz, please go ahead.

現在我將把時間交給我們的主持人投資者關係主管 Liz Werner。莉茲，請繼續。

Good morning, everyone, and welcome to Jackson's second-quarter 2024 earnings call. Today's remarks may contain forward-looking statements, which are subject to risks and uncertainties. These statements are not guarantees of future performance or events and are based upon management's current expectations.

大家早安，歡迎參加 Jackson 的 2024 年第二季財報電話會議。今天的言論可能包含前瞻性陳述，這些陳述存在風險和不確定性。這些陳述不是對未來績效或事件的保證，而是基於管理階層目前的預期。

Jackson's filings with the SEC to provide details on important factors that may cause actual results or events to differ materially, except as required by law. Jackson is under no obligation to update any forward-looking statements. If circumstances or management's estimates or opinions should change.

傑克森向美國證券交易委員會提交的文件提供了可能導致實際結果或事件出現重大差異的重要因素的詳細信息，除非法律要求。傑克森沒有義務更新任何前瞻性陳述。如果情況或管理層的估計或意見發生變化。

Today's remarks also refer to certain non-GAAP financial measures. The reconciliation of those measures to the most comparable US GAAP figures is included in our earnings release, financial supplement and earnings presentation, all of which are available on the Investor Relations page of our website at investors.jackson.com.

今天的言論也提到了某些非公認會計準則財務指標。這些指標與最具可比性的美國公認會計準則數據的調節包含在我們的收益發布、財務補充和收益演示中，所有這些都可以在我們網站的投資者關係頁面上找到：investors.jackson.com。

Joining us today are our CEO Laura Prieskorn; and our CFO Don Cummings; the President of Jackson National Life distributors Scott Romine; our Head of Asset Liability Management and Chief Actuary, Steve Binioris; and the President and Chief Investment Officer of PPM, Craig Smith. At this time, I'll turn the call over to our CEO, Laura Prieskorn.

今天加入我們的是我們的執行長 Laura Prieskorn；以及我們的財務長唐‧卡明斯 (Don Cummings)； Jackson National Life 經銷商總裁 Scott Romine；我們的資產負債管理主管兼總精算師 Steve Binioris；以及 PPM 總裁兼首席投資長 Craig Smith。此時，我會將電話轉給我們的執行長 Laura Prieskorn。

Good morning, everyone. As we moved through the second-quarter our operating trends and strong capital levels, supported positive financial results and sustainable capital returns. Today, we look forward to discussing our second quarter results and progress through the first-half of 2024.

大家早安。隨著我們第二季度的營運趨勢和強勁的資本水平，支持了積極的財務表現和可持續的資本回報。今天，我們期待討論第二季的業績以及 2024 年上半年的進展。

Beginning on slide 3, we achieved positive net income and solid operating earnings growth in the second quarter of 2024, driven by increased fee income from higher average annuity assets under management and higher net investment income.

從投影片 3 開始，我們在 2024 年第二季實現了正的淨利和穩健的營業利潤成長，這得益於管理下的平均年金資產較高的費用收入和較高的淨投資收入。

The benefits of a favorable equity market and strong annuity sales contributed to growth from the second quarter of 2023 and from the first quarter of this year, we continue to see successful retail annuity sales across all product lines, demonstrating our continued focus on execution checks and provides a range of annuity solutions to advisers and their clients. And in the second quarter of 2024, we saw strong demand for registered index-linked annuities for retailers and traditional variable annuities.

有利的股市和強勁的年金銷售推動了 2023 年第二季度和今年第一季的成長，我們繼續看到所有產品線的零售年金銷售取得成功，這表明我們繼續關注執行檢查和為顧問及其客戶提供一系列年金解決方案。在 2024 年第二季度，我們看到零售商對註冊指數掛鉤年金和傳統可變年金的強勁需求。

Total retail annuity sales grew 36% from the second quarter of 2023 and 15% from the first quarter of this year. Variable annuity sales benefited from rising equity markets and the opportunity for equity growth available through our commitment to investment freedom.

零售年金銷售總額較 2023 年第二季成長 36%，較今年第一季成長 15%。可變年金銷售受惠於股票市場的上漲以及我們對投資自由的承諾所提供的股票成長機會。

Our second quarter variable annuity sales of $2.7 billion represented a return to a level we last saw in the third quarter of 2022. We continue to build momentum in RILA sales, reaching a record $1.4 billion in the second quarter with an increasing share of new and reactivated advisors selling RILA as their leading annuity solution, demonstrating that RILA continues to be a source of diversification and a product of choice for our financial professionals.

我們第二季的可變年金銷售額為 27 億美元，恢復了 2022 年第三季的水平。我們繼續增強RILA 銷售勢頭，第二季度達到創紀錄的14 億美元，新的和重新激活的顧問將RILA 作為其領先的年金解決方案銷售的比例不斷增加，這表明RILA 仍然是多元化的來源和首選產品對於我們的金融專業人士。

We expect Jackson's sales momentum to continue as we focus on providing the best solutions to US retirement savers through our product innovation, strengthen distribution and best-in-class service. Our traditional investment only variable annuity and RILA product were once again recognized in Barron's annual 100 Best annuities guide published in late July.

我們預計 Jackson 的銷售動能將持續下去，因為我們專注於透過產品創新、加強分銷和一流的服務為美國退休儲蓄者提供最佳解決方案。我們傳統的純投資可變年金和RILA產品再次獲得《巴倫周刊》7月底發布的年度100最佳年金指南的認可。

I'm proud that these products were highlighted across three categories for offering exceptional value for policyholders. Preliminary data from industry trade organization Luara shows the overall US annuity market is expected to set a new sales record in the first half of 2024.

我很自豪這些產品在三個類別中得到強調，為保單持有人提供卓越的價值。產業貿易組織Luara的初步數據顯示，美國整體年金市場預計將在2024年上半年創下新的銷售紀錄。

According to their recent forecast, sales of traditional VA are expected to exceed $40 billion in 2024, up more than 15% from 2023 and sales of RILA are expected to exceed $50 billion in 2024, up approximately 8% from 2023.

根據他們最近的預測，傳統VA的銷售額預計在2024年將超過400億美元，比2023年增長15%以上，RILA的銷售額預計在2024年將超過500億美元，比2023年增長約8% 。

We're excited about the growth the industry has seen across product lines as more Americans seek solutions offering guaranteed lifetime income. Critical to this continued growth is a focus on enhancing the digital experience for financial professionals and consumers to strengthen understanding of annuities value to a confident and secure retirement.

隨著越來越多的美國人尋求提供有保障的終身收入的解決方案，我們對產業在各個產品線中看到的成長感到興奮。這種持續成長的關鍵是注重增強金融專業人士和消費者的數位體驗，以加深對年金價值的理解，從而實現自信和安全的退休生活。

Jackson has a long history of investing in technology, which we believe has contributed to our competitive cost structure and exceptional service delivery for financial professionals and their clients. We are a leader in digital connectivity through data exchanges and integrations within the annuity industry ecosystem.

Jackson 擁有悠久的技術投資歷史，我們相信這有助於我們提高具有競爭力的成本結構以及為金融專業人士及其客戶提供卓越的服務。我們透過年金產業生態系統內的資料交換和整合成為數位連結的領導者。

This allows us to connect to an advisors' platform of choice making annuities more accessible for financial professionals and their clients and making it easier to do business with Jackson with a variety of educational tools and information available jackson.com serves as a platform for financial professionals to build their practice, support their clients and optimize annuities in their current books of business.

這使我們能夠連接到顧問選擇的平台，使金融專業人士及其客戶更容易獲得年金，並透過各種可用的教育工具和資訊更容易與傑克遜開展業務。他們的實踐，支持他們的客戶並優化他們目前業務中的年金。

The platform also serves clients helping them to plan their journey more easily toward financial freedom. As an example, we have enhanced the capabilities within our digital ecosystem, a one-stop platform for financial professionals.

該平台還為客戶提供服務，幫助他們更輕鬆地規劃實現財務自由的旅程。例如，我們增強了數位生態系統的功能，這是一個面向金融專業人士的一站式平台。

This digital experience initially available for our RILA products allows advisers to illustrate how RILA could fit within a client's portfolio to meet their specific needs based on customized market scenarios. We have seen substantial growth in activity for this platform with second quarter 2024 visits, up nearly 75% compared to the second quarter of 2023.

這種數位體驗最初適用於我們的 RILA 產品，使顧問能夠根據客製化的市場場景說明 RILA 如何適應客戶的投資組合，以滿足他們的特定需求。我們看到該平台的活動大幅成長，2024 年第二季的訪問量比 2023 年第二季成長了近 75%。

The success of our RILA digital ecosystem experience has led to stronger sales lead generation contributed to new advisor relationships and furthered our sales momentum. Approximately one-third of our wireless sales this quarter came from producers utilizing our RILA digital ecosystem.

我們 RILA 數位生態系統經驗的成功帶來了更強大的銷售線索生成，有助於建立新的顧問關係並進一步推動我們的銷售勢頭。本季我們的無線銷售額約三分之一來自使用我們 RILA 數位生態系統的生產商。

Clearly, demonstrating that financial professionals are relying on our industry-leading technology to provide clients with better information and service. Jackson also plays a leadership role in the insured Retirement Institute digital first for annuities initiative, helping to establish industry wide data standards and embracing innovation to ensure financial professionals and clients experience a streamlined and modern approach to retirement planning.

顯然，這表明金融專業人士正在依靠我們行業領先的技術為客戶提供更好的資訊和服務。傑克森還在受保退休協會年金數位優先計畫中發揮領導作用，幫助建立全行業數據標準並擁抱創新，以確保金融專業人士和客戶體驗簡化和現代的退休計畫方法。

We look forward to continuing this important work to enhance the overall digital experience and simplify integration of our products within the industry.

我們期待繼續這項重要的工作，以增強整體數位體驗並簡化我們產品在行業內的整合。

Turning back to slide 3. During the second quarter of 2024 and excluding the impact of its distribution to JFI Jackson National Life's total adjusted capital grew by $321 million. And for the first half of the year, increased by $681 million.

回到投影片 3。2024 年第二季度，排除分配給 JFI Jackson National Life 的影響，調整後資本總額增加了 3.21 億美元。上半年增加了6.81億美元。

Our more stable capital generation continues to reflect the success of Brooke Re. Importantly, this stability supports our balanced approach to capital management, which includes our commitment to shareholder return, maintaining and strengthening our balance sheet and funding growth through new business and other strategic opportunities.

我們更穩定的資本產生繼續反映了布魯克再保險的成功。重要的是，這種穩定性支持我們平衡的資本管理方法，包括我們對股東回報的承諾、維持和加強我們的資產負債表以及透過新業務和其他策略機會為成長提供資金。

Capital return in the second quarter was $144 million through a combination of common share repurchases and common share dividend. Yesterday, we also announced our Board's approval of a $750 million increase, two our common share repurchase authorization and a third quarter common stock dividend of $0.7 per share.

透過普通股回購和普通股股息相結合，第二季的資本回報為 1.44 億美元。昨天，我們還宣布董事會批准增加 7.5 億美元、兩項普通股回購授權以及第三季每股 0.7 美元的普通股股息。

The expanded share repurchase authorization has no time limit and provides flexibility for capital return into the future. We believe this announcement highlights our commitment to future profitability, capital generation and long-term shareholder value.

擴大的股份回購授權沒有時間限制，為未來的資本回報提供了彈性。我們相信，這項公告凸顯了我們對未來獲利能力、資本產生和長期股東價值的承諾。

You can see our record of consistent capital return on slide 4, which totaled $1.5 billion since separation, including repurchases of 25% of our common shares at separation.

您可以在投影片 4 上看到我們持續的資本回報記錄，自分拆以來資本回報總額為 15 億美元，其中包括在分拆時回購 25% 的普通股。

slide 5 shows we are on pace to achieve our full year targets for the 4th year in a row. For the second quarter of 2024, our estimated RBC ratio is between 550% and 570% well above our minimum of 425%. The greater stability of capital generation will continue to support our approach to more frequent capital distributions than our prior practice of an annual dividend to our holding company following this approach, our statutory capital at the end of the second quarter was approximately $4.7 billion after the $250 million distribution from our main operating company, Jackson National Life in June.

投影片 5 顯示我們正在連續第四年實現全年目標。對於 2024 年第二季度，我們預計 RBC 比率在 550% 至 570% 之間，遠高於我們的最低值 425%。與我們先前向控股公司派發年度股息的做法相比，資本生成的穩定性將繼續支持我們更頻繁地進行資本分配，按照這種方法，我們在第二季度末的法定資本約為47 億美元，在扣除250 美元後6 月份，我們的主要營運公司 Jackson National Life 進行了 100 萬美元的分配。

At this time, I'd like to turn the call over to our CFO, Don Cummings.

此時，我想將電話轉給我們的財務長唐‧卡明斯 (Don Cummings)。

Thank you, Laura, and I'll begin on slide 6 with our second quarter results summary. Adjusted operating earnings of $410 million were up 45% over the second quarter of last year and 23% over the first quarter of this year. This significant growth in earnings was primarily due to higher fee income from growth in variable annuity assets under management and higher earnings on spread products.

謝謝勞拉，我將從第 6 張投影片開始介紹我們的第二季業績摘要。調整後營業利潤為 4.1 億美元，比去年第二季成長 45%，比今年第一季成長 23%。收益的顯著成長主要是由於所管理的可變年金資產成長所帶來的費用收入增加以及利差產品收益的增加。

Spread earnings benefited from gains in net investment income, primarily driven by the growth of our RILA block as well as higher portfolio yields. The investment portfolio supporting our spread products has continued to perform well.

利差收益受益於淨投資收益的成長，這主要是由我們的 RILA 區塊的成長以及更高的投資組合收益率所推動的。支持我們價差產品的投資組合持續表現良好。

The appendix of our earnings presentation provides breakdowns on both GAAP and statutory bases, excluding the assets reinsurance to third parties through funds withheld agreement. This information includes insight into our highly rated and diversified commercial office loan portfolio, which is less than 2% of the investment portfolio.

我們收益報告的附錄提供了公認會計準則和法定基礎的詳細信息，不包括透過資金扣留協議向第三方提供的資產再保險。這些資訊包括對我們高評級和多元化的商業辦公貸款組合的深入了解，該貸款組合佔投資組合的比例不到 2%。

Jackson remains conservatively positioned with only 1% exposure to below investment grade securities on a statutory basis, excluding funds withheld assets.

傑克森仍保持保守立場，根據法定規定，只有 1% 的投資等級以下證券曝險（不包括基金預扣資產）。

Before turning to notable items in the quarter, I want to highlight the growth in book value since year end. Our adjusted book value attributable to common shareholders ended the second quarter at $11.5 billion or $150.35 per diluted share, an increase of over 10% from year end 2023, driven by our strong operating performance and common share repurchase activity.

在討論本季的值得注意的項目之前，我想強調一下自年底以來帳面價值的成長。截至第二季末，我們歸屬於普通股股東的調整後帳面價值為115 億美元，即稀釋後每股150.35 美元，較2023 年底增長超過10%，這得益於我們強勁的經營業績和普通股回購活動。

Slide 7 outlines the notable items included in adjusted operating earnings for the second quarter of 2024 reported earnings per share were $5.32 for the current quarter, adjusting for $0.37 of notable items and the difference in tax rates from our 15% guidance.

第7 張投影片概述了2024 年第二季調整後營業收益中包含的顯著項目，本季報告的每股收益為5.32 美元，調整了0.37 美元的顯著項目以及與我們15% 指導值的稅率差異。

Earnings per share were $4.87 for the current quarter compared to $3.54 in the prior year's second quarter. This strong earnings improvement was primarily due to the growth in assets under management and spread income benefits noted earlier, as well as the reduction in diluted share count from common share repurchase activity.

本季每股收益為 4.87 美元，而去年第二季每股收益為 3.54 美元。這種強勁的獲利改善主要是由於管理資產的成長和前面提到的利差收入收益，以及普通股回購活動稀釋後股票數量的減少。

Notable items for the quarter also included a $0.31 benefit from a pay-out annuity reserve release due to death. This was a one-off item in the current quarter that we do not expect to repeat.

本季值得注意的項目還包括因死亡而發放年金準備金的 0.31 美元福利。這是本季的一次性項目，我們預計不會重複。

Turning to slide 8, we've included a waterfall comparison of our second quarter 2024 non-GAAP pre-tax adjusted operating earnings of $473 million to GAAP pre-tax income attributable to Jackson financial of $311 million.

轉向幻燈片 8，我們對 2024 年第二季度非 GAAP 稅前調整後營業利潤 4.73 億美元與歸屬於 Jackson 財務的 GAAP 稅前收入 3.11 億美元進行了瀑布式比較。

We continue to see greater alignment between adjusted operating earnings and GAAP income following the establishment of Brook Re at the beginning of this year. Although our net hedge result was a loss of $201 million in the second quarter of 2024. For the first half of the year, we reported a net hedge gain of $226 million.

在今年年初布魯克再保險成立後，我們繼續看到調整後的營業利潤與公認會計準則收入之間的一致性更加緊密。儘管我們的淨對沖結果在 2024 年第二季虧損了 2.01 億美元。今年上半年，我們報告的淨對沖收益為 2.26 億美元。

The hedging results include a robust guaranteed benefit fee stream that is derived from the benefit base rather than the account value, which provides stability to the guaranteed fees even in periods when markets decline.

避險結果包括一個強大的保證收益費用流，該費用流源自收益基礎而不是帳戶價值，即使在市場下跌期間也能保證保證費用的穩定性。

During the second quarter of 2024. The net hedge result included a loss on freestanding derivatives of about $1 billion, primarily due to losses on interest rate hedges in a quarter where interest rates were up across the yield curve as well as losses on equity hedges in a rising equity market environment.

2024 年第二季。淨對沖結果包括約 10 億美元的獨立衍生性商品損失，主要是由於利率在殖利率曲線上上升的季度的利率對沖損失以及股市上漲環境下的股票對沖損失。

Changes in net market risk benefits or net MRB benefited from the same equity market and interest rate movements, providing a $516 million offset to the freestanding derivatives loss. It is important to note that in addition to market and interest rate impacts, there will be an MRB increase in each period as time passes due to the collection of fees, the reserve and embedded derivative loss of $278 million during the second quarter primarily reflects losses on RILA reserves resulting from higher equity markets.

淨市場風險收益或淨 MRB 的變化受益於相同的股票市場和利率變動，為獨立衍生性商品損失提供了 5.16 億美元的抵銷。值得注意的是，除了市場和利率影響外，隨著時間的推移，由於收取費用，每個時期的MRB都會增加，第二季度準備金和嵌入衍生品損失2.78億美元主要反映了虧損RILA 儲備因股市上漲而產生。

The RILA business provides a natural equity risk offset to our guaranteed variable annuity business which results in hedging efficiencies that increase at the RILA grows, the change in the net MRB fees collected during the period as well as the reserve and embedded derivative movements should be viewed collectively when comparing to freestanding derivative losses that come through in our hedge results.

RILA 業務為我們的保證可變年金業務提供了自然的股權風險抵消，這導致對沖效率隨著 RILA 的增長而增加，應關注期間收取的淨 MRB 費用的變化以及準備金和嵌入衍生品變動與我們的對沖結果中出現的獨立衍生性商品損失進行比較時，我們將其歸為一類。

The deferred acquisition costs or DAC amortization reported in the net hedge result is associated with the nonoperating portion of debt as of the transition date to LDTI. This non-operating deck will continue to run off over time and the amount of quarterly amortization will decline from the current level over time.

淨對沖結果中報告的遞延收購成本或 DAC 攤銷與截至 LDTI 過渡之日的債務非營運部分相關。隨著時間的推移，這種非經營性資產將繼續流失，季度攤銷金額將隨著時間的推移從當前水準下降。

To summarize the results of our hedging program, we've included a subtotal in the table on slide 8 that excludes DAC amortization as this expense is not an element of our hedging program for driven by current period activity.

為了總結我們的對沖計劃的結果，我們在投影片 8 的表格中包含了一個小計，其中不包括 DAC 攤銷，因為這項費用不是我們由當期活動驅動的對沖計劃的組成部分。

The net impact of guarantee fees, freestanding derivatives loss, market risk benefits gain in reserve and embedded derivative movements was a $65 million loss in the second-quarter of 2024. We believe this result demonstrates that our hedging program continues to be effective in reducing the volatility of our results and is working as expected with the establishment of Brook Re.

擔保費、獨立衍生性商品損失、準備金中的市場風險收益收益和嵌入衍生性商品變動的淨影響是 2024 年第二季損失 6,500 萬美元。我們相信這一結果表明，我們的對沖計劃繼續有效地降低了我們業績的波動性，並且隨著布魯克再保險的成立，其效果符合預期。

Non-operating result also included $71 million in gains from business reinsured to third parties. This resulted from a loss on a funds withheld reinsurance treaty due to the change in the associated embedded derivative value netted against the related net investment income.

非經營性業績還包括向第三方再保險業務帶來的 7,100 萬美元收益。這是由於相關內嵌衍生性商品價值與相關淨投資收益的淨額發生變化，導致預扣資金再保險條約出現損失。

These nonoperating items, which can be volatile from period to period are offset by changes in accumulated other comprehensive income for AOCI in the funds withheld account related to reinsurance, resulting in a minimal net impact on adjusted book value. Furthermore, these items do not impact our statutory capital or free cash flow.

這些非經營項目可能會隨著時間的推移而波動，但會被與再保險相關的預扣資金帳戶中 AOCI 累計其他綜合收益的變化所抵消，從而對調整後的賬面價值產生最小的淨影響。此外，這些項目不會影響我們的法定資本或自由現金流。

Our segment results begin on slide 9 and focus on the healthy new business profile of our retail annuity segment in the current quarter illustrated by growth of 36% from the second quarter of last year and 15% from the first quarter of this year.

我們的部門業績從投影片 9 開始，重點關注本季零售年金部門健康的新業務狀況，比去年第二季成長 36%，比今年第一季成長 15%。

Our rail product continues to gain momentum, with second quarter sales reaching a record level of $1.4 billion, supporting further diversification in our top line growth, going forward, we expect continued growth in our RILA business to be supported by our recent launch of a living benefit as well as the recent availability of one of Jackson's base RILA products in New York.

我們的鐵路產品繼續保持成長勢頭，第二季銷售額達到14 億美元的創紀錄水平，支持我們收入成長的進一步多元化，展望未來，我們預計RILA 業務的持續成長將得到我們最近推出的生活服務的支援好處以及 Jackson 的一款基本 RILA 產品最近在紐約上市。

Sales of variable annuities grew from the second quarter of last year in the first quarter of this year, driven by products without lifetime income benefits, including Elite Access our investment only variable annuity. The gross sales we are generating in RILA and other spread products translated to $1.4 billion of non-variable annuity net flows in the second quarter of 2024, which has grown materially over time. These net flows provide valuable economic diversification and hedging efficiency benefits. Importantly, our overall sales mix remains efficient from the standpoint of new business strain.

今年第一季度，可變年金的銷售額較去年第二季度有所增長，這是由沒有終身收入福利的產品推動的，其中包括我們僅投資的Elite Access可變年金。我們在 RILA 和其他利差產品中產生的總銷售額在 2024 年第二季轉化為 14 億美元的非可變年金淨流量，並且隨著時間的推移而大幅成長。這些淨流量提供了寶貴的經濟多元化和對沖效率效益。重要的是，從新業務壓力的角度來看，我們的整體銷售組合仍然有效。

Looking at second quarter 2024, pre-tax adjusted operating earnings for our segments on slide 10, higher equity markets and a continued positive environment for spread products as driven solid growth in our retail annuity segment compared to both the second quarter of last year and the first quarter of this year.

展望2024 年第二季度，幻燈片10 上我們各部門的稅前調整後營業利潤、股市上漲以及利差產品持續積極的環境推動了我們的零售年金部門與去年第二季度和去年第二季度相比的穩健成長今年第一季。

Jackson's earnings power is supported by the growing level of assets under management as healthy separate account returns, combined with growing non variable annuity net flows have built our AUM up to $247 billion an increase of 9% from the second quarter of last year.

傑克遜的盈利能力得到了不斷增長的管理資產水平的支持，健康的獨立帳戶回報，加上不斷增長的非可變年金淨流量，使我們的資產管理規模達到2,470 億美元，比去年第二季度增長9%。

Importantly, the positive separate account performance has offset our overall net outflows, including the impact of slightly elevated surrenders of variable annuities coming out of their surrender charge period by nearly $13 billion in the first half of 2024.

重要的是，積極的獨立帳戶表現抵消了我們的整體淨流出，包括 2024 年上半年退保收費期後可變年金退保額小幅增加近 130 億美元的影響。

For our institutional segment, pre-tax adjusted operating earnings were up from the second quarter of last year due to higher spread income. We have seen increased new business activity in 2024 with over $600 million in second quarter sales in what we believe to be a strong start to the third quarter to date.

對於我們的機構部門，由於利差收入增加，稅前調整後營業利潤較去年第二季增加。我們看到 2024 年新業務活動增加，第二季銷售額超過 6 億美元，我們認為這是迄今為止第三季的強勁開局。

Our closed life and annuity blocks segment reported higher pre-tax adjusted operating earnings compared to both the second quarter of last year and the first quarter of this year due primarily to improved mortality trends.

與去年第二季和今年第一季相比，我們的封閉式人壽和年金業務部門的稅前調整後營業利潤較高，這主要是由於死亡率趨勢的改善。

slide 11 summarizes our strong 2024 capital and liquidity position. The profitability of our in-force business, including the variable annuity base contract, provided substantial capital generation of $321 million during the second quarter, consistent with our prior guidance for smaller periodic distributions from Jackson National Life $250 million was distributed to JFI during the second quarter of 2024.

投影片 11 總結了我們 2024 年強勁的資本和流動性狀況。我們的有效業務（包括可變年金基本合約）的盈利能力在第二季度提供了3.21 億美元的大量資本生成，這與我們之前對Jackson National Life 較小定期分配的指導一致。分配了2.5 億美元2024 年第四季。

After accounting for this impact and the related reduction in deferred tax asset at miscibility. Jackson's total adjusted capital or tack increased slightly and ended the quarter at $4.7 billion. Our Company action level required capital or cow is also much more stable following the formation of Brook Re.

考慮到此影響以及可混合性遞延所得稅資產的相關減少後。Jackson 的調整後總資本或策略略有增加，季末達到 47 億美元。Brook Re 成立後，我們公司所需的資金或牛隻的行動水準也更加穩定。

This stability was apparent in our second quarter 2024 results, with estimated count slightly higher, reflecting growth in rail assets and normal investment portfolio activity. Our estimated RBC ratio range of 550% to 570% remains well above our 425% minimum.

這種穩定性在我們 2024 年第二季的業績中表現得很明顯，預計數量略有增加，反映了鐵路資產的成長和正常的投資組合活動。我們估計的 RBC 比率範圍為 550% 至 570%，仍然遠高於我們的最低值 425%。

We are pleased with Brooke Re's second quarter performance, which is operating as expected and remains well capitalized. Our holding company cash and highly liquid asset position at the end of the quarter was over $500 million, which continues to be above our minimum buffer.

我們對布魯克再保險第二季的業績感到滿意，該公司營運符合預期，且資本充足。截至本季末，我們的控股公司現金和高流動性資產部位超過 5 億美元，繼續高於我們的最低緩衝水準。

The extraordinary dividend from Jackson National Life this quarter is consistent with the goal of reducing the RBC volatility that occurred from our past practice of sizable annual dividends. We believe our robust capital position across operating companies provides a strong financial base for future operating company dividends.

傑克遜國民人壽本季的非凡股息與我們過去實行大量年度股息的做法所導致的減少加拿大皇家銀行波動性的目標是一致的。我們相信，我們在各營運公司穩健的資本狀況為未來營運公司的股利提供了堅實的財務基礎。

As Laura mentioned earlier, we received Board approval for a $750 million addition to our existing common share repurchase authorization. As a reminder, there is no time limit on this authorization, which positions us well to reach our 2024 financial targets and future share repurchase activity.

正如勞拉之前提到的，我們獲得了董事會批准，在現有普通股回購授權的基礎上追加 7.5 億美元。謹此提醒，此項授權沒有時間限制，這使我們能夠很好地實現 2024 年的財務目標和未來的股票回購活動。

Overall, I am incredibly pleased with our second quarter results, which demonstrate positive momentum in sales, earnings, capital generation and holding company liquidity.

總的來說，我對我們第二季的業績感到非常滿意，這表明銷售、獲利、資本產生和控股公司流動性方面的積極勢頭。

I'll now turn the call back to Laura.

我現在將電話轉回給勞拉。

Thank you, Don. Our second quarter results demonstrate we continue to benefit from our stable capital position and market leadership. We look forward to the second half of 2024 and providing further updates on our growth product initiatives and continued capital generation.

謝謝你，唐。我們第二季的業績顯示我們繼續受益於我們穩定的資本狀況和市場領導地位。我們期待 2024 年下半年，並提供有關我們的成長產品計劃和持續資本產生的進一步更新。

As always, I'd like to acknowledge our talented Jackson team for their dedication to our purpose in providing long-term solutions to Americans claiming for their financial futures is our greatest strength, the opportunity to work alongside our associates is ever rewarding as we continued to deliver against our strategic and operational goals while supporting our communities and each other.

像往常一樣，我要感謝我們才華橫溢的傑克遜團隊，他們致力於為美國人提供長期解決方案，聲稱他們的財務未來是我們最大的優勢，與我們的同事一起工作的機會是非常有益的，因為我們繼續實現我們的策略和營運目標，同時支持我們的社區和彼此。

At this time, I'd like to turn it over to the operator for questions.

這時候我想把它交給接線生詢問。

(Operator Instructions)

（操作員說明）

Suneet Kamath, Jefferies.

蘇尼特·卡馬斯，杰弗里斯。

I just wanted to start with the capital generation. If we look kind of year to date, I think you're a little over $600 million, which is pretty well in excess of, I guess, your $1 billion-plus that you've talked about before. I just was hoping you could unpack that.

我只想從資本生成開始。如果我們看看今年迄今為止的情況，我認為您的收入略高於 6 億美元，我想這遠遠超出了您之前談到的 10 億美元以上。我只是希望你能解開它。

How much of that was maybe the better market and versus better investment spreads? Because even if I think about the market impact, the growth seems just a lot higher than that. So I just wanted to understand what's going in there, please.

其中有多少可能是更好的市場和更好的投資利差？因為即使我考慮市場影響，成長似乎也比這高得多。所以我只是想了解裡面發生了什麼事。

Thanks.

謝謝。

Thanks, Suneet. It's Don. I'll take that question. So first of all, just a reminder on our $1 billion capital generation guidance that was based on performance under normal market conditions. So as we look at the performance in the first half, we've obviously had a strong tailwind from the equity market performance to reach that $680 million.

謝謝，蘇尼特。是唐。我來回答這個問題。首先，提醒一下我們的 10 億美元資本產生指引是基於正常市場條件下的表現。因此，當我們觀察上半年的表現時，我們顯然受到股市表現的強勁推動，達到了 6.8 億美元。

So we are a bit ahead, but we continue to feel very comfortable with our $1 billion guidance and growth in statutory capital. So I would say that the business that we're writing today is fairly capital efficient, and we see attractive opportunities going forward to diversify our mix of business that could change the magnitude of required capital related to organic growth.

所以我們有點領先，但我們仍然對 10 億美元的指導和法定資本的增長感到非常滿意。因此，我想說，我們今天所寫的業務具有相當的資本效率，我們看到了未來使我們的業務組合多樣化的誘人機會，這可能會改變與有機增長相關的所需資本的規模。

But overall, just to answer your question, I think the main delta from $1 billion is related to that was a more normal market environment as opposed to the strong growth that we've seen in the first half of the year.

但總的來說，為了回答你的問題，我認為 10 億美元的主要增量與更正常的市場環境有關，而不是我們在今年上半年看到的強勁成長。

And maybe just to follow up on that, because I think the markets through the second quarter were up like 14%. If you just use the S&P and obviously the growth off of the so the run rate in capital generation is well above that percentage-wise.

也許只是為了跟進，因為我認為第二季的市場上漲了 14%。如果你只使用標準普爾指數，顯然它的成長，那麼資本產生的運作率就遠高於這個百分比。

So it is it just the positive operating leverage that you're getting and that's what's giving you higher capital generation because it does seem to be coming in higher than the overall market. Thanks.

因此，這只是您獲得的積極的營運槓桿，這就是為您帶來更高資本產生的原因，因為它似乎確實高於整體市場。謝謝。

Yeah, so it is a combination. So obviously, our portfolio is pretty heavily weighted toward our variable annuity business. So the within Jackson National, you're going to see the higher variable annuity AUM driving our fee income. So that's a significant component.

是的，所以這是一個組合。顯然，我們的投資組合非常注重我們的可變年金業務。因此，在傑克遜國民銀行內部，您將看到更高的可變年金資產管理規模推動我們的費用收入。所以這是一個重要的組成部分。

The other thing that I would remind you of is that we did have strong growth in RILA sales. So as we continue to bring on assets for that business, we're seeing our spread-based earnings as well.

我要提醒您的另一件事是，我們的 RILA 銷售額確實出現了強勁增長。因此，當我們繼續為該業務帶來資產時，我們也看到了基於利差的收益。

And then my follow-up is just on just how where we sit today. Obviously, first half of the year was pretty good, but now volatility has spiked interest rates. I've been pretty volatile as well. I guess how should we think about the capital generation in general? And I see and the reason I ask is my thought was or my understanding was that most of the hedges are now in Brook Re, which means capital generation of JNIC might be a little bit more tied to the markets, but I just wanted to get your thoughts, but based on that as well as just where we sit today in terms of the volatility.

然後我的後續行動就是我們今天的立場。顯然，今年上半年相當不錯，但現在波動性導致利率飆升。我的情緒也很不穩定。我想我們該如何看待一般的資本生成？我明白了，我問的原因是我的想法或理解是，大多數對沖現在都在 Brook Re，這意味著 JNIC 的資本生成可能與市場有更多的聯繫，但我只是想得到您的想法，但基於此以及我們今天在波動性上的立場。

Yeah, so maybe I'll address the volatility point, first so, you know, with the recent market pullback that we saw in the last few days, our hedging program continued to perform as expected with Brook Re in place. And I think there are a couple of things that contribute to that.

是的，所以也許我會解決波動點，首先，你知道，隨著我們在過去幾天看到的最近市場回調，我們的對沖計劃在布魯克再保險到位的情況下繼續按預期執行。我認為有幾件事促成了這一點。

So first of all, just reminding everyone that our hedging program is now aligned more with the economics post the brokerage transaction. So that makes it easier to manage with less rebalancing needed, given that we've got a much more predictable hedge target.

首先，提醒大家，我們的避險計畫現在更符合經紀交易後的經濟狀況。因此，考慮到我們有一個更可預測的對沖目標，這使得管理變得更容易，所需的再平衡也更少。

And our hedge target is really just our MRB position on a modified GAAP basis. So that is certainly contributing to the positive results at JNL, and we do have some hedges at JNL for business that was not seeded over to Brooke Ray. But you're right in that we would continue to see most of the performance of JNL being driven by our base contract. And there is a little bit of sensitivity to market results there and the impact on variable annuity AUM. And then again, as I said earlier, the growth in parts.

我們的對沖目標其實只是我們在修改後的 GAAP 基礎上的 MRB 部位。因此，這無疑為 JNL 的積極成果做出了貢獻，而且我們在 JNL 確實對未播種給布魯克雷的業務進行了一些對沖。但你說得對，我們將繼續看到 JNL 的大部分業績都是由我們的基礎合約驅動的。而且對市場結果以及對可變年金資產管理規模的影響有點敏感度。然後，正如我之前所說，零件的成長。

Okay. Thanks.

好的。謝謝。

(Operator Instructions)

（操作員說明）

Tom Gallagher, Evercore ISI.

湯姆·加拉格爾，Evercore ISI。

Good morning. A couple of questions on hedging and Brook Re. So Don, I was following your comments and it sounds like the $200 million-plus derivative loss was largely offset by the fees you're collecting, the guaranteed fees you're collecting. I think you said it was a net of $64 million for Brooke Re in the quarter.

早安.關於對沖和布魯克再保險的幾個問題。唐，我一直在關注您的評論，聽起來 2 億多美元的衍生性商品損失很大程度上被您收取的費用、您收取的保證費用所抵消。我想您說過，Brooke Re 本季淨收入為 6,400 萬美元。

So my question is can you just comment on what are the actual hard assets that are currently capitalizing Brooke on? And how does that compare to the $64 million? And just can you mention your capital levels there? Do you have a buffer over what you target?

所以我的問題是，您能否評論一下目前布魯克利用的實際硬資產是什麼？與 6400 萬美元相比如何？您能提到您的資本水準嗎？你對你的目標有緩衝嗎？

Yeah. Thanks, Tom. So first of all, just a reminder. So the components of the hedge gain or loss in the quarter, which we displayed on slide 8 of the earnings material. Those are for JFI on a consolidated basis, and there's not a direct read-across to Brooke Re, but generally, I think you can use that as kind of an informational proxy.

是的。謝謝，湯姆。首先，只是提醒一下。因此，我們在收益資料的幻燈片 8 中展示了本季對沖收益或損失的組成部分。這些是針對 JFI 的綜合報告，不能直接閱讀 Brooke Re，但一般來說，我認為您可以將其用作資訊代理。

Brooke Re follows a modified GAAP structure, so I'm not going to be the exact same numbers, but kind of directionally a good indicator. In terms of just some stats on Brooke Re, just remind you of what we've previously disclosed. So we funded Brooke Re on day one with $700 million of cash and investments and add on day one, we had an MRB that was in an asset position and through the first half of the year, we've seen a bit of growth in Brooke Re's equity. So everything with Brooke Re, with two quarters behind us is operating as we expected, and we continue to be comfortable with that structure.

布魯克再保險遵循修改後的公認會計原則結構，所以我不會提供完全相同的數字，但在方向上是一個很好的指標。就布魯克再保險的一些統計數據而言，請提醒您我們先前揭露的內容。因此，我們在第一天就為布魯克再保險提供了7 億美元的現金和投資，並在第一天補充說，我們有一個處於資產狀況的MRB，在今年上半年，我們看到了布魯克再保險的一些增長Re 的股權。因此，布魯克再保險的一切都在我們的預期中運作，已經過去了兩個季度，我們仍然對這種結構感到滿意。

Got you. And so the 64, I could compare to the $700 million or, you know, is the net assets of the net reserve position, that's an asset large enough where it's not going to be a 10% type swing in your capital there, that it would be much smaller. Can maybe if you could comment on that?

明白你了。因此，我可以將 64 與 7 億美元進行比較，或者，你知道，是淨儲備頭寸的淨資產，這是一項足夠大的資產，你的資本不會出現 10% 的波動，它會小得多。您可以對此發表評論嗎？

Yeah. So, the 65 wouldn't be relative to the $700 million of hard assets because again, there's a couple of components to Brooke Re's equity. It's the hard assets that we put in in addition to the MRB asset. And you know, that's going to be significantly higher than $700 million.

是的。因此，65 美元與 7 億美元的硬資產無關，因為布魯克再保險的股權有幾個組成部分。這是除了 MRB 資產之外我們投入的硬資產。你知道，這將遠遠高於 7 億美元。

So we provide some disclosures in our financial supplement on the consolidated JFI MRB position. But again, not that's not a direct read-across for Brooke Re. It gives you an idea of the magnitude of the assets that we've got in Brooke Re.

因此，我們在財務補充資料中揭露了關於合併 JFI MRB 部位的一些資訊。但同樣，這並不是布魯克雷的直接閱讀。它讓您了解我們在布魯克再保險公司擁有的資產規模。

Okay. And then my last question is just when I if I look back a few years ago, when you were still using a different hedging approach. I think the duration of most of your derivatives were around three months. And then there was a period where as rates began to move higher, you started lengthening that out.

好的。然後我的最後一個問題是當我回顧幾年前時，你們仍在使用不同的對沖方法。我認為你們大部分衍生性商品的期限都在三個月左右。然後有一段時間，隨著利率開始走高，你開始延長這段時間。

Can you comment about average duration of your hedging instruments and also roll risk if we get into an environment where the market becomes a lot more volatile, how should we think about roll risk on your hedges? Thanks.

您能否評論一下您的對沖工具的平均久期以及展期風險，如果我們進入市場變得更加波動的環境，我們應該如何考慮對沖的展期風險？謝謝。

Yeah, so I'll make a couple of points and maybe ask Steve to just chime in on some of the specifics around the duration of our hedges. But with because of broker raise, hedging program is more aligned with the economics.

是的，所以我會提出幾點，也許請史蒂夫插話我們對沖期限的一些細節。但由於經紀人的加薪，對沖計畫更符合經濟。

It's much easier for us to manage and actually requires are less rebalancing than our historical approach under the old statutory framework. So we feel comfortable that that's working as we kind of designed it. And as we expected with Steve just chime in on in terms of the duration of the hedges that we're using in and that sort of thing?

與我們在舊法定框架下的歷史方法相比，這對我們來說更容易管理，而且實際上需要的重新平衡也更少。所以我們對它按照我們設計的方式工作感到很舒服。正如我們所期望的那樣，史蒂夫只是插話我們正在使用的對沖的持續時間以及諸如此類的事情？

Yeah, Tom, in terms of focusing on interest rates as part of the modified GAAP a move, we really increased our interest rate protection as part of that framework. And so, we do have some pretty significant north of $30 billion of interest rate derivatives because of the Tom, those are it's getting more tied to the longer end of the yield curve.

是的，湯姆，就將利率作為修改後的公認會計原則的一部分的舉措而言，我們確實增加了利率保護，作為該框架的一部分。因此，由於湯姆，我們確實擁有一些相當大的超過 300 億美元的利率衍生品，它們與殖利率曲線較長的一端越來越緊密地聯繫在一起。

So, 10, 20, 30, you're part of the yield curve. So, we've got some pretty good protection there that's tied to liability is in terms of the on the equity side, we both have a combination of futures, but importantly, we do still have a significant into put option portfolio that's there for retail type events.

所以，10、20、30，你就是殖利率曲線的一部分。因此，我們在股票方面獲得了一些與責任相關的相當好的保護，我們都有期貨組合，但重要的是，我們仍然擁有大量用於零售的看跌期權投資組合類型事件。

Yields have worked really loving them in recent periods of market volatility picked up, having those puts in place serves as well. And those will vary from three to six to nine months. We've tried to stagger the maturities a little bit on the put options as well. So we feel pretty comfortable that our hedging is pretty resilient for the foreseeable future.

在最近市場波動加劇的時期，收益率確實發揮了作用，這些看跌期權也發揮了作用。這些時間會有所不同，從三到六到九個月不等。我們也嘗試稍微錯開看跌期權的到期日。因此，我們對我們的對沖在可預見的未來具有相當的彈性感到非常放心。

In terms of the low risk, we're pretty diversified across multiple indices of view. We've ramped up to seven different equity indices that we are using right now. So we want to make sure we're lined up both the liabilities and offer our platform and where the benefits that we are getting with respect to managing the collateral, the counterparty risk is pilot does provide a nice offset to our VAs on.

就低風險而言，我們在多個指標上的觀點相當多元化。我們目前使用的股票指數已增加到七種。因此，我們希望確保我們排列好負債並提供我們的平台，並且我們在管理抵押品方面獲得的好處，交易對手風險是試點，確實為我們的虛擬資產提供了很好的抵消。

We're seeing about a 30% reduction in our kind of external hedging needs. And so that does help with managing the liquidity and the rule of thumb of the all of Europe overall risk management.

我們看到我們的外部對沖需求減少了約 30%。因此，這確實有助於管理流動性和整個歐洲整體風險管理的經驗法則。

Got you. Thanks for the color.

明白你了。謝謝你的顏色。

Thank you. (Operator Instructions)

謝謝。（操作員說明）

At this time, we have no further questions so I'll hand back over to Laura. Please any closing or final remarks.

目前，我們沒有其他問題了，所以我將把問題交還給勞拉。請發表任何結束語或最後的評論。

Thank you. Your participation in today's call is appreciated. We thank you all for joining us this morning. Take care.

謝謝。感謝您參加今天的電話會議。我們感謝大家今天早上加入我們。小心。

Ladies and gentlemen, this concludes today's call. Thank you for joining us to disconnect your line.

女士們、先生們，今天的電話會議到此結束。感謝您加入我們來斷開您的線路。