| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 150.06 | 26 |
| Intrinsic value (DCF) | 32.87 | -72 |
| Graham-Dodd Method | 143.36 | 21 |
| Graham Formula | 76.60 | -36 |
Jackson Financial Inc. (NYSE: JXN) is a leading provider of retirement income and savings solutions, specializing in annuities and life insurance products in the U.S. The company operates through three key segments: Retail Annuities, Institutional Products, and Closed Life and Annuity Blocks. Jackson Financial offers a diversified portfolio, including variable, fixed index, fixed, and immediate payout annuities, as well as registered index-linked annuities and lifetime income solutions. Its Institutional Products segment provides guaranteed investment contracts and funding agreements, while its Closed Life and Annuity Blocks segment manages legacy insurance products. With a strong distribution network spanning independent broker-dealers, financial institutions, and registered investment advisors, Jackson Financial serves retail investors seeking retirement security. Headquartered in Lansing, Michigan, the company has established itself as a trusted name in the insurance and financial services sector, leveraging its expertise in risk management and long-term wealth preservation.
Jackson Financial presents a compelling investment case due to its strong market position in the U.S. annuity space, diversified product portfolio, and robust cash flow generation. The company's $5.78B market cap, $3.77B in cash reserves, and $2.9 annual dividend per share underscore its financial stability. However, investors should consider risks such as exposure to interest rate fluctuations (evidenced by a beta of 1.515) and regulatory changes in the insurance sector. The company's $4.38B debt load, while manageable given its cash position, warrants monitoring. With $3.09B in revenue and $946M net income in its latest reporting period, Jackson demonstrates profitability in a competitive annuity market. The stock may appeal to income-focused investors given its dividend yield and exposure to retirement solutions demand from an aging population.
Jackson Financial competes in the highly fragmented U.S. annuity and life insurance market, where its primary competitive advantage lies in its specialized focus on retirement income products and strong distribution relationships. The company's Retail Annuities segment benefits from brand recognition among financial advisors and a comprehensive product suite that addresses various retirement planning needs. Jackson's institutional capabilities through its funding agreements and investment contracts provide diversification from pure retail exposure. Compared to larger diversified insurers, Jackson's narrower focus allows for deeper expertise in annuity products but may limit cross-selling opportunities. The company's closed block business provides stable cash flows but offers limited growth potential. Jackson maintains competitiveness through product innovation (such as registered index-linked annuities) and efficient administration of legacy blocks. However, it faces pressure from low-cost digital entrants and must continually adapt to changing regulatory environments and consumer preferences for more flexible retirement solutions. The company's scale is intermediate—large enough to achieve operational efficiencies but smaller than industry giants, requiring strategic focus to maintain margins in a competitive pricing environment.