Jackson's First Quarter Annuity Sales Rise 8% to $2.6 Billion

Business Wire, May 14, 2009

Strong Fixed Annuity Sales Drive Annuity Net Flows 21% Higher

LANSING, Mich. -- Jackson National Life Insurance Company® (Jackson®) generated $2.6 billion in annuity sales during the first quarter of 2009, up 8 percent over the prior year period. First quarter 2009 annuity net flows (total premium minus surrenders, exchanges and annuitizations) of $1.0 billion were 21-percent higher than the same period in 2008, due in part to an 81-percent year-over-year increase in traditional fixed annuity sales. Jackson's first quarter retail sales and deposits1 totaled $2.7 billion, in line with retail sales and deposits in the first quarter of 2008.

"Despite challenging macroeconomic conditions, Jackson has maintained strong inflows of new premium and good persistency on its back book, as customers and advisers favor a business partner that is consistent throughout all phases of the business cycle,” said Clark Manning, Jackson’s president and chief executive officer. "Jackson's prudent approach to product pricing and risk management is a significant competitive advantage in the current market environment."

In the first quarter of 2009, Jackson, an indirect wholly owned subsidiary of the United Kingdom’s Prudential plc (NYSE: PUK), recorded $1.5 billion in variable annuity sales, compared to $1.8 billion in the first quarter of 2008. Sales of traditional fixed annuities were $693 million, up from $382 million during the same period of the prior year. Jackson's fixed index annuity sales of $354 million were up 83 percent over the first quarter of 2008.

"In this turbulent market, advisers and their clients are increasingly attracted to the stability of Jackson's franchise," said Clifford Jack, executive vice president and chief distribution officer for Jackson. "Jackson's product offering and wholesaling force has remained relatively consistent, and the company's financial strength ratings are unchanged."

Jackson has maintained its financial strength ratings for more than six years and, in March 2009, both Moody's Investors Service and Fitch Ratings affirmed Jackson's financial strength ratings. As of March 31, 2009, Jackson was rated:

• A (superior) 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.

In the first quarter of 2009, Jackson sold $12 million in life insurance products, compared to $14 million in the first quarter of 2008. Jackson did not sell any institutional products during the first quarter of 2009, as the company redirected available capital to support higher-margin annuity sales. Jackson participates in the institutional market on an opportunistic basis when capital is available and margins are attractive.

Curian Capital, Jackson's separately managed accounts subsidiary, accumulated $140 million in deposits during the first quarter of 2009, compared to $310 million during the same period of the prior year. As of March 31, 2009, Curian's assets under management totaled $2.3 billion, down from $2.6 billion at the end of 2008, due primarily to a double-digit decline in equity markets during the first quarter of 2009.

“Jackson's first-quarter sales performance reflects the company's strategy of balancing profitable growth with capital preservation,” Manning said. "Jackson remains well-capitalized and will continue to be managed for the long-term benefit of both our customers and our parent company's shareholders."

1Deposits from retail mutual funds and Jackson’s subsidiary Curian Capital have been included in Jackson’s retail sales and deposits figures. Retail sales and deposits exclude sales of institutional products — guaranteed investment contracts, funding agreements and medium-term notes.

About Jackson National Life Insurance Company

With nearly $75 billion in assets (IFRS unaudited)*, Jackson National Life Insurance Company is an industry leader in variable, fixed and fixed index annuities. The company also offers 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®, similarly markets products in the state of New York. Through its affiliates and subsidiaries, Jackson also provides asset management, retail mutual funds and retail brokerage services. For more information, visit www.jackson.com.

*Jackson has nearly $75 billion in total IFRS assets and more than $69 billion in IFRS policy liabilities set aside to pay primarily future policyowner benefits (as of 12/31/08). International Financial Reporting Standards (IFRS) is a principles-based set of international accounting standards indicating how transactions and other events should be reported in financial statements. IFRS are issued by the International Accounting Standards Board in an effort to increase global comparability of financial statements and results. IFRS is used by Jackson's parent, Prudential plc, to report the Group's financial results.