Executives from Jackson Financial said Wednesday that registered index-linked annuities (RILAs) appeal to a somewhat different market than the other annuities the company writes.
"The average age of a RILA policyholder is five years younger than our traditional variable annuity buyer," Jackson CEO Laura Prieskorn told securities analysts during a conference call.
Prieskorn talked about the RILA market while going over earnings for the second quarter.
What It Means
RILAs might be helping some clients get serious about retirement income planning earlier.
The Earnings
Accounting rules now require Jackson to include fluctuations in the value of benefits promises and derivatives arrangements in net income.
The Lansing, Michigan-based insurer's adjusted earnings exclude those fluctuations.
Jackson is reporting $283 million in adjusted operating earnings for the second quarter on $2.6 billion in fee income, premiums and investment income, compared with $407 million in adjusted operating earnings on $2.7 billion in fee income, premiums and investment income for the second quarter of 2022.
Total annuity sales fell to $3.1 billion, from $4.1 billion in the year-earlier quarter.
RILA sales increased to $541 million, from $490 million.
Variable annuity sales fell to $2.4 billion, from $3.6 billion.
