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Jackson National Life Insurance Company



Jackson National Life Insurance Company

Origins


Jackson National Life Insurance Company (Jackson) – named after Andrew Jackson, the seventh president of the United States – first started business in Jackson, Michigan in 1961. By 1976 the states of California, Washington, Montana, New Mexico, Nebraska, Kansas, Missouri, Indiana and Alabama were included in its operating territory. When it was acquired by Prudential in 1986 Jackson was a successful family-managed life company operating in 45 states. It was one of the first companies in the US to promote the virtues of term insurance, and in 1975 it had developed an early form of ‘universal' life assurance, eight years before any competitor offered a similar type of protection.

Expansion


Since joining the Prudential group, Jackson has successfully grown into a multi-product, multi-channel financial services company. Headquartered in Lansing, Michigan, Jackson is now registered to provide products and services in 50 US states and the District of Columbia. In 1994 Jackson entered a new distribution channel with the establishment of the Institutional Marketing Group to offer its products through financial institutions such as banks and credit unions, while 2003 saw the launch of Curian Capital LLC, a registered investment adviser providing a managed account fee-based brokerage application.

In recent years, Jackson has revamped its life assurance and annuity products to include Perspective II, an innovative, unbundled variable annuity, and an annual reset equity-linked indexed annuity. 93 per cent of Jackson's sales in 2003 came from products launched since the beginning of 2002, demonstrating its strength in the development of new products.

In 2005 Jackson completed the purchase of Life Insurance Company of Georgia. This purchase doubled the total number of life insurance and annuity policies in force.

Financial highlights
— A strong Retail performance saw a four per cent increase in sales and a 17 per cent increase in new business profit, demonstrating the continuing benefits of selectively participating in product lines that can deliver attractive returns
—Prudential UK completed the transfer of Equitable Life’s £1.7 billion in-force portfolio of with-profits annuities
—Total new business profit increased by four per cent, reflecting an improved new business margin

Prudential UK’s Retail business is focusing on savings and income for those customers nearing or in retirement. The strategy in the Wholesale market is to participate selectively in bulk and back-book buyouts where Prudential UK is able to win business based on its financial strength, superior track record and market-leading investment capability, as well as its extensive annuitant mortality risk assessment capabilities.

Products and Services
Prudential provides a range of products and services including:
— Individual annuities
— Individual and corporate pensions
— With-profits and unit-linked bonds
—Lifetime mortgages
—Health insurance
—Protection
—Bulk annuities and back-book buyouts

Prudential UK has developed a full range of retirement income solutions. This includes a new Flexible Lifetime Annuity, and an Income Drawdown product which helps customers manage their pension through the various stages of retirement, as well as offering flexibility and the potential for growth through investment. Prudential UK has also made a number of enhancements to its lifetime mortgage range, including a new lump sum product as well as an inheritance guarantee. The PruHealth joint venture, which rewards healthy living, also continues to grow well.

Product distribution channels
— Direct to customers (telephone, internet and mail)
— Financial advisers
—Business to business (consulting actuaries and benefit advisers)
—Partnerships (affinities and banks)

Customers: 7 million +

Staff: 4,000 + (as at April 2008)

Locations: Prudential UK has offices located in London, Reading, Belfast, Dublin and Stirling, and a customer service centre in Mumbai.


2007 business review – insurance operations, US
View the business history of Jackson National Life Insurance Company
Fact File 2008
 


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