Jackson Acquires John Hancock’s Group Payout Annuity Business

Jackson National Life Insurance Company® (Jackson®) announced today it has executed definitive agreements with John Hancock Life Insurance Company (U.S.A.) (John Hancock) to reinsure 100% of the Group Payout Annuity business of John Hancock and its affiliate, John Hancock Life Insurance Company of New York. The transaction closed yesterday on the non-New York portion of the business, representing approximately 90% of the overall block of Group Payout Annuities. The closing on the New York portion is subject to New York regulatory approval and is expected to occur in early 2019.

In total, the transaction involves Jackson indemnity reinsuring approximately $5.5 billion of statutory reserves, representing an increase in Jackson’s general account liabilities of approximately 10%. John Hancock will continue to be responsible for the administration of the business.

“This transaction represents a reaffirmation of Jackson’s bolt-on strategy and continuing commitment to deploy capital at attractive return levels. This transaction will further diversify our risk portfolio and revenue sources in relation to both general account and separate account businesses,” said Barry Stowe, chief executive officer of Jackson Holdings LLC.

Notes to Editors: The acquisition is structured as 100% reinsurance of a closed block of group annuities issued by John Hancock Life Insurance Company (U.S.A.) and its New York affiliate. The portfolio of over 230,000 policies relates mainly to pension participants which are primarily in the payout phase, the majority of the policies having been issued between 1980 and 2012. The transaction is expected to have minimal impact on Jackson’s U.S. statutory Risk Based Capital position.

About Jackson

Jackson is a leading provider of retirement products for industry professionals and their clients. The company and its affiliates offer variable, fixed and fixed index annuities designed for tax-efficient growth and distribution of retirement income for retail customers, as well as products for institutional investors. Jackson is a proud founding member and co-chair of the Alliance for Lifetime Income, a nonprofit 501(c)(6) organization formed and supported by 24 of the nation’s financial services organizations to create awareness and educate Americans about the importance of protected lifetime income. With $264.9 billion in IFRS assets*, the company prides itself on sound corporate risk management practices and strategic technology initiatives. Focused on thought leadership and education, Jackson provides industry insights and financial representative training on retirement planning and alternative investment strategies. The company is also dedicated to corporate philanthropy and supports nonprofits focused on strengthening families and creating economic opportunities in the communities where its employees live and work. For more information, visit www.jackson.com.

*Jackson has $264.9 billion in total IFRS assets and $251.6 billion in IFRS policy liabilities set aside to pay primarily future policyowner benefits (as of June 30, 2018). International Financial Reporting Standards (IFRS) is a principles-based set of international accounting standards for reporting financial information. IFRS is 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 company.

Jackson is an indirect subsidiary of Prudential plc, a company incorporated in England and Wales. Prudential plc and its affiliated companies constitute one of the world's leading financial services groups, serving over 26 million customers with $877.2 billion in assets under management (as of June 30, 2018). 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.

This press release may contain certain statements that constitute “forward-looking statements.” 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. Any forward-looking statements reflect Jackson’s views and assumptions as of the date of this press release and Jackson disclaims any obligation to update forward-looking information.

PR3224 11/18

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