Jackson Closes in on Record Retail Sales

Business Wire, Oct 19, 2006

Company Variable Annuity Sales up Nearly 50%

LANSING, Mich. -- Jackson National Life Insurance Company([R]) (Jackson) recorded retail sales of nearly $6.9 billion in its core life insurance and annuity product lines during the first nine months of 2006, up 25 percent from the same period a year ago. Jackson's retail sales during the first three quarters of 2006 were nearly 94 percent of the company's record $7.3 billion in total retail sales generated during full-year 2005.

"US demographic trends, combined with the growing concentration of wealth in the hands of those approaching or already in retirement, present a major opportunity," said Clark Manning, Jackson's president and chief executive officer. "Jackson has established strong positions in advice-based distribution channels and is able to quickly manufacture products and features that offer advisers and their clients valuable retirement solutions."

Jackson, an indirect wholly owned subsidiary of the United Kingdom's Prudential plc (NYSE:PUK), increased total sales by 14.5 percent over the first nine months of 2005 to nearly $8.3 billion. Jackson's sales growth during the year was driven primarily by variable annuity (VA) sales of more than $5.1 billion, up 48 percent over the same period in 2005. Jackson's share of the VA market was 4.3 percent in the first half of 2006, up from 3.5 percent in the first half of 2005.1 In the independent broker-dealer channel, Jackson's market share of VA sales was 10.4 percent in 1H06, up from 8.8 percent in 1H05, and the company ranked second in VA sales through the channel, up from fifth in 1H05 and third in 1Q06.1

"Jackson's sales success in the independent channel has been driven by the exceptional support that Jackson provides financial advisers and their clients," said Clifford Jack, executive vice president and chief distribution officer for Jackson. "We have some of the most experienced and productive wholesalers in the industry who take a long-term, collaborative approach to building business relationships with advisers. Combined with innovative, flexible products, excellent technology and award-winning customer service, Jackson offers advisers the tools they need to build their business and to design customizable retirement income solutions for their clients."

Jackson's fixed annuity sales were nearly $940 million in the first nine months of 2006, compared to nearly $1.2 billion in the same period in 2005. Third quarter 2006 fixed annuity sales increased 27 percent over second quarter 2006. Through the first nine months of the year, sales of Jackson's fixed index annuities (FIAs) totaled nearly $794 million, versus more than $848 million in the prior year period.

Life insurance sales of nearly $34 million during the first three quarters of 2006 were 1 percent higher than the same period last year. Sales of Jackson's institutional products, a market in which the company participates on an opportunistic basis, were nearly $1.4 billion, versus more than $1.7 billion in the first nine months of 2005.

Jackson subsidiary Curian Capital, a registered investment adviser (RIA), attracted nearly $616 million in deposits during the first nine months of 2006, an increase of 6 percent from the prior year period. During third quarter 2006, Curian surpassed $2 billion in assets under management, and ranks among the top 10 third-party RIA vendors by total managed account assets.2

"Jackson has built a strong reputation for innovation and flexible product design," Manning said. "We will continue to lever our excellent product manufacturing capabilities to quickly address the changing retirement planning needs of financial advisers and their clients."

(1)Source: The Variable Annuity Research & Data Service (VARDS([R])), a unit of Morningstar, Inc. Latest industry data available.

(2)Source: Cerulli Associates, Third-Party Vendor Managed Account Assets as of Q1 2006, August 2006.

Before investing in variable products, investors should carefully consider the investment objectives, risks, charges and expenses of the variable product and its underlying investment options. The current contract prospectus and underlying fund prospectuses, which are contained in the same document, provide this and other important information. Please contact your representative or the Company to obtain the prospectuses. Please read the prospectuses carefully before investing or sending money.

About Jackson National Life Insurance Company

With more than $70 billion in assets (GAAP unaudited at 6/30/06)(a), Jackson National Life Insurance Company (Jackson) is an industry leader in variable, fixed and fixed index annuities. The company also sells life insurance and institutional products. Jackson markets its products in 49 states and the District of Columbia through independent and regional broker-dealers, financial institutions and independent insurance agents. Jackson's subsidiary, Jackson National Life Insurance Company of New York([R]), markets annuity products in the state of New York. Through its affiliates and subsidiaries, Jackson also provides asset management and retail brokerage services. For more information, visit www.jnl.com.