Jackson Reports Total Sales and Deposits of $11.2 Billion

Business Wire, Oct 21, 2008

Diversified Product Portfolio Lifts Nine-Month Total 2% Higher than Same Period in 2007

LANSING, Mich. -- Jackson National Life Insurance Company([R]) (Jackson(SM)) generated $11.2 billion in total sales and deposits1 during the first three quarters of 2008, representing a 2-percent increase over the same period in 2007 and the highest level of total sales during the first three quarters in Jackson's history. The increase in sales was driven primarily by higher sales of traditional fixed annuities (up 165 percent year over year) and institutional products (up 41 percent year over year), partially offset by lower sales of variable annuities (down 26 percent year over year).

"Our diversified product portfolio, excess capital position and the way in which we actively manage our investments make Jackson resilient to changes in the business cycle and macroeconomic challenges," said Clark Manning, Jackson's president and chief executive officer. "Jackson has been, and will continue to be, managed for the long-term benefit of our customers and shareholders."

Jackson, an indirect wholly owned subsidiary of the United Kingdom's Prudential plc (NYSE: PUK), had $4.3 billion of regulatory adjusted capital as of September 30, 2008, which represents nearly 10 times the regulatory requirements2. Furthermore, Jackson's statutory capital ratio (calculated as total adjusted capital divided by statutory reserves, excluding separate accounts) was nearly 10 percent at September 30, 2008.

In the first nine months of 2008, Jackson recorded nearly $9.0 billion in retail sales and deposits3, down 5 percent from the prior year period, with total annuity net flows (total premium minus surrenders, exchanges and annuitizations) falling only 1.4 percent year over year. Variable annuity sales exceeded $5.0 billion, compared to nearly $6.8 billion in the same period of 2007. Sales of traditional fixed annuities totaled more than $2.2 billion during the first nine months of 2008, compared to only $837 million during the same period in the prior year. Jackson sold $617 million in fixed index annuities, compared to $679 million during the first nine months of 2007.

"Due to the financial crisis, advisers need help in navigating volatile markets and reassuring frightened clients," said Clifford Jack, executive vice president and chief distribution officer for Jackson. "In response to this need, Jackson has expanded the wholesaling support we provide to our distribution partners. With a diversified lineup of flexible products backed by award-winning service and comprehensive retirement planning resources, advisers know they can count on Jackson to be a valuable business partner when times are good and when they are challenging."

During the first nine months of 2008, Jackson generated life insurance sales of $45 million, up 26 percent from the prior year period. Deposits in the Jackson Funds(SM), which were first launched in January 2007, totaled $62 million in the first three quarters of 2008, down from $65 million during the same period of the prior year. Jackson sold more than $2.2 billion in institutional products during the first three quarters of 2008, compared to nearly $1.6 billion in the same period of 2007. Jackson participates in the institutional market on an opportunistic basis.

Curian Capital, Jackson's separately managed accounts subsidiary, accumulated $940 million in deposits during the first nine months of 2008, compared to $963 million in the same period of the prior year. As of September 30, 2008, Curian's assets under management totaled $3.2 billion, compared to $3.5 billion at the end of 2007, as new deposits were offset by a sharp decline in equity markets.

"At Jackson, we put our Long-Term Smart(SM) philosophy into every decision we make. We consistently review our investments with an eye toward long-term stability and economic viability, and take a conservative approach to managing risk," said Manning. "As of June 30, 2008, Jackson had more than $82 billion in assets4 and nearly $75 billion in policy liabilities4 set aside to pay future policyholder benefits, and our capital position remains well in excess of regulatory requirements. While it is difficult to predict when the disruption in the financial markets will end, our customers can remain confident in Jackson's ability to make smart, prudent business decisions that are sensible not just today, but also over the long term."

Jackson's financial strength ratings have remained unchanged for more than five years. As of September 30, 2008, Jackson was rated:

* A (excellent) by A.M. Best

* AA (very strong) by Standard & Poor's

* AA (very strong) by Fitch Ratings

* A1 (good) by Moody's Investors Service, Inc.

(1)Deposits from retail mutual funds and Jackson's subsidiary Curian Capital have been included in Jackson's total and retail sales and deposits figures, beginning with full-year 2007. Prior year comparisons have been restated to include deposits from Curian and the retail mutual funds.