v3.26.1
Investments
 3 Months Ended
Mar. 31, 2026
Investments, Debt and Equity Securities [Abstract]  
Investments Investments
Investments consist primarily of fixed-income securities and loans, principally publicly-traded corporate and government bonds, asset-backed securities and mortgage loans. Asset-backed securities include mortgage-backed and other structured securities. The Company generates the majority of its general account deposits from interest-sensitive individual annuity contracts, life insurance products and institutional products on which it has committed to pay a declared rate of interest. The Company's strategy of investing in fixed-income securities and loans seeks to match the asset yield with the amounts credited to the interest-sensitive liabilities and to earn a stable return on its investments.

Long-term Strategic Partnership with TPG

During the first quarter of 2026, Jackson entered a long-term strategic partnership with TPG, combining Jackson’s annuity product expertise and broad distribution network with TPG’s private credit platform. The partnership aims to expand Jackson’s spread-based product sales.

The transaction closed on February 11, 2026. At the closing, subsidiaries and affiliates of Jackson Financial and TPG entered into non-exclusive investment management arrangements with a 10-year initial term with automatic 1-year renewals through year 15 (subject to various termination rights), with TPG providing Investment Grade Asset Based Finance and Direct Lending investment capabilities to complement the asset management capabilities of PPM America, Inc. ("PPM"), a Jackson Financial subsidiary. The arrangement contemplates certain target AUM levels over time and related investment management fees (including a baseline minimum fee payment), subject to exceptions, that the Company is committed to pay during the term of the agreements and any applicable wind-down period. PPM will continue to manage the majority of Jackson’s general account and both Jackson and PPM will retain oversight of Jackson’s investment portfolio.

TPG acquired a $500 million equity stake in Jackson Financial. See Note 19 - Equity of these Notes to Condensed Consolidated Financial Statements for more information regarding the shares issued to TPG. Additionally, TPG issued to a wholly owned, indirect subsidiary of Jackson $150 million in TPG common shares, which was reported in equity securities, at fair value on the Condensed Consolidated Balance Sheets. Under the terms of the transaction, TPG and Jackson have agreed to certain limitations on their ability to divest their respective ownership stakes over time.

Debt Securities

The following table sets forth the composition of the fair value of debt securities at March 31, 2026, and December 31, 2025, classified by rating categories as assigned by a nationally recognized statistical rating organization (a “rating agency”), National Association of Insurance Commissioners (the “NAIC”) or, if not rated by such organizations, the Company’s investment advisors. The Company uses the second lowest rating by a rating agency when rating agencies' ratings are not equivalent and, for purposes of the table, if not otherwise rated by a rating agency, the NAIC rating of a security is converted to an equivalent rating agency rating. At March 31, 2026 and December 31, 2025, the carrying value of investments rated by the Company’s consolidated investment advisor totaled $839 million and $606 million, respectively.
Percent of Total Debt
Securities Carrying Value
March 31, 2026December 31, 2025
Investment Rating
U.S. government securities 6.0%5.9%
AAA
4.8%5.0%
AA
9.4%9.5%
A
32.5%32.2%
BBB
41.2%40.9%
Investment grade
93.9%93.5%
BB
2.3%2.5%
B and below
3.8%4.0%
Below investment grade
6.1%6.5%
Total debt securities
100.0%100.0%
At March 31, 2026 and December 31, 2025, the total carrying value of debt securities in an unrealized loss position consisted of:

March 31, 2026December 31, 2025
Investment grade securities79%78%
Below investment grade securities1%1%
Not rated securities20%21%

Unrealized losses on debt securities that were below investment grade or not rated were approximately 18% and 19% of the aggregate gross unrealized losses on available-for-sale debt securities at March 31, 2026 and December 31, 2025, respectively.

Corporate securities in an unrealized loss position were diversified across industries. As of March 31, 2026, the industries accounting for the largest percentage of unrealized losses included utility (19% of corporate gross unrealized losses) and healthcare (12%). The largest unrealized loss related to a single corporate obligor was $58 million at March 31, 2026. As of December 31, 2025, the industries accounting for the largest percentage of unrealized losses included utility (18% of corporate gross unrealized losses) and financial services (13%). The largest unrealized loss related to a single corporate obligor was $55 million at December 31, 2025.

At March 31, 2026 and December 31, 2025, the amortized cost, allowance for credit loss ("ACL"), gross unrealized gains and losses, and fair value of debt securities, including trading securities and securities carried at fair value under the fair value option, were as follows (in millions):

Allowance GrossGross
Amortizedfor UnrealizedUnrealizedFair
March 31, 2026
Cost (1)
Credit LossGainsLossesValue
U.S. government securities$3,989 $— $1 $865 $3,125 
Other government securities1,255 — 2 202 1,055 
Public utilities6,696 — 46 530 6,212 
Corporate securities35,124 6 245 2,255 33,108 
Residential mortgage-backed473 1 21 26 467 
Commercial mortgage-backed2,010 — 5 61 1,954 
Other asset-backed securities6,160 10 17 140 6,027 
Total debt securities$55,707 $17 $337 $4,079 $51,948 
Allowance GrossGross
Amortizedfor UnrealizedUnrealizedFair
December 31, 2025
Cost (1)
Credit LossGainsLossesValue
U.S. government securities$3,854 $— $2 $851 $3,005 
Other government securities1,254 — 4 193 1,065 
Public utilities6,529 — 75 458 6,146 
Corporate securities34,515 — 443 2,042 32,916 
Residential mortgage-backed445 4 24 23 442 
Commercial mortgage-backed1,873 — 10 54 1,829 
Other asset-backed securities5,491 7 34 130 5,388 
Total debt securities$53,961 $11 $592 $3,751 $50,791 
(1) Amortized cost, apart from the carrying value for securities carried at fair value under the fair value option and trading securities.
The amortized cost, ACL, gross unrealized gains and losses, and fair value of debt securities at March 31, 2026, by contractual maturity, are shown below (in millions). Actual maturities may differ from contractual maturities where securities can be called or prepaid with or without early redemption penalties.

Allowance GrossGross
Amortizedfor UnrealizedUnrealizedFair
Cost (1)
Credit LossGainsLossesValue
Due in 1 year or less$1,794 $— $2 $6 $1,790 
Due after 1 year through 5 years14,271 — 92 394 13,969 
Due after 5 years through 10 years13,927 — 144 384 13,687 
Due after 10 years through 20 years9,633 6 48 1,430 8,245 
Due after 20 years7,439 — 8 1,638 5,809 
Residential mortgage-backed473 1 21 26 467 
Commercial mortgage-backed2,010 — 5 61 1,954 
Other asset-backed securities6,160 10 17 140 6,027 
Total$55,707 $17 $337 $4,079 $51,948 
(1) Amortized cost, apart from the carrying value for securities carried at fair value under the fair value option and trading securities.

As required by law in various states in which business is conducted, securities with a carrying value of $56 million and $57 million at March 31, 2026 and December 31, 2025, respectively, were on deposit with regulatory authorities.

Residential mortgage-backed securities (“RMBS”) include certain RMBS that are collateralized by residential mortgage loans and are neither expressly nor implicitly guaranteed by U.S. government agencies (“non-agency RMBS”). The Company’s non-agency RMBS include investments in securities backed by prime, Alt-A, and subprime loans, as follows (in millions):

Allowance GrossGross
Amortizedfor UnrealizedUnrealizedFair
March 31, 2026
Cost (1)
Credit LossGainsLossesValue
Prime$310 $1 $2 $14 $297 
Alt-A21 — 14 3 32 
Subprime7 — 4 — 11 
Total non-agency RMBS$338 $1 $20 $17 $340 
Allowance GrossGross
Amortizedfor UnrealizedUnrealizedFair
December 31, 2025
Cost (1)
Credit LossGainsLossesValue
Prime$280 $2 $3 $13 $268 
Alt-A23 2 16 2 35 
Subprime7 — 4 — 11 
Total non-agency RMBS$310 $4 $23 $15 $314 
(1) Amortized cost, apart from carrying value for securities carried at fair value under the fair value option and trading securities.
The Company defines its exposure to non-agency RMBS as follows:

•Prime loan-backed securities that are collateralized by mortgage loans made to the highest rated borrowers;
•Alt-A loan-backed securities that are collateralized by mortgage loans made to borrowers who lack credit documentation or necessary requirements to obtain prime borrower rates; and
•Subprime loan-backed securities that are collateralized by mortgage loans made to borrowers that have a FICO score of 660 or lower.

Unrealized Losses on Debt Securities

For debt securities in an unrealized loss position, management first assesses whether the Company has the intent to sell, or whether it is more likely than not it will be required to sell, the security before the amortized cost basis is fully recovered. If either criterion is met, the amortized cost is written down to fair value through net gains (losses) on derivatives and investments as an impairment. If neither criterion is met, the securities are further evaluated to determine if the cause of the decline in fair value resulted from credit losses or other factors, such as estimates about issuer operations and future earnings potential.

There are inherent uncertainties in assessing the fair values assigned to the Company’s investments. The Company’s reviews of net present value and fair value involve several criteria including economic conditions, credit loss experience, other issuer-specific developments and estimated future cash flows. These assessments are based on the best available information at the time. Factors such as market liquidity, the widening of bid/ask spreads and a change in cash flow assumptions can contribute to future price volatility. If actual experience differs negatively from the assumptions and other considerations used in the Condensed Consolidated Financial Statements, unrealized losses currently reported in accumulated other comprehensive income (loss) may be recognized in the consolidated income statements in future periods.

The Company currently has no intent to sell securities with unrealized losses considered to be temporary until they mature or recover in value and believes that it has the ability to do so. However, if the specific facts and circumstances surrounding an individual security, or the outlook for its industry sector change, the Company may sell the security prior to its maturity or recovery and realize a loss.

When all, or a portion, of a security is deemed uncollectible, the uncollectible portion is written off with an adjustment to amortized cost and a corresponding reduction to the allowance for credit losses.

Accrued interest receivables are presented separate from the amortized cost basis of debt securities. Accrued interest receivables that are determined to be uncollectible are written off with a corresponding reduction to net investment income. Accrued interest written off was $1 million and nil for the three months ended March 31, 2026 and 2025, respectively.
The following table summarizes the gross unrealized losses of debt securities, fair value, and number of securities, aggregated by investment category and length of time that individual debt securities have been in a continuous loss position (dollars in millions):

March 31, 2026December 31, 2025
Less than 12 monthsLess than 12 months
GrossFair
Value		GrossFair
Value
Unrealized# ofUnrealized# of
LossessecuritiesLossessecurities
U.S. government securities$2 $335 23 $2 $68 16 
Other government securities 3 116 26 1 48 7 
Public utilities22 1,083 137 7 419 44 
Corporate securities160 8,160 906 44 2,300 240 
Residential mortgage-backed5 162 63 2 43 21 
Commercial mortgage-backed5 632 85 2 163 30 
Other asset-backed securities34 2,747 240 16 673 69 
Total temporarily impaired securities$231 $13,235 1,480 $74 $3,714 427 
12 months or longer12 months or longer
GrossFair
Value		GrossFair
Value
Unrealized# ofUnrealized# of
LossessecuritiesLossessecurities
U.S. government securities$863 $2,238 20 $849 $2,263 20 
Other government securities 199 856 100 192 887 107 
Public utilities508 3,293 402 451 3,383 415 
Corporate securities2,095 11,164 1,431 1,998 12,130 1,502 
Residential mortgage-backed21 144 161 21 172 166 
Commercial mortgage-backed56 778 116 52 801 117 
Other asset-backed securities106 1,131 137 114 1,249 147 
Total temporarily impaired securities$3,848 $19,604 2,367 $3,677 $20,885 2,474 
TotalTotal
GrossGross
UnrealizedFair# ofUnrealizedFair# of
LossesValue
securities (1)
LossesValue
securities (1)
U.S. government securities$865 $2,573 38 $851 $2,331 31 
Other government securities 202 972 124 193 935 113 
Public utilities530 4,376 522 458 3,802 454 
Corporate securities
2,255 19,324 2,224 2,042 14,430 1,706 
Residential mortgage-backed26 306 223 23 215 187 
Commercial mortgage-backed61 1,410 194 54 964 146 
Other asset-backed securities140 3,878 370 130 1,922 211 
Total temporarily impaired securities$4,079 $32,839 3,695 $3,751 $24,599 2,848 
(1) Certain securities contain multiple lots and fit the criteria of both aging groups.

Debt securities in an unrealized loss position as of March 31, 2026, did not require an impairment recognized in earnings as (i) the Company did not intend to sell these debt securities, (ii) it is not more likely than not that the Company will be required to sell these securities before recovery of their amortized cost basis, and (iii) the difference in the fair value compared to the amortized cost was due to factors other than credit loss. Based upon this evaluation, the Company believes it has the ability to generate adequate amounts of cash from normal operations to meet cash requirements with a reasonable margin of safety without requiring the sale of these securities.
As of March 31, 2026, unrealized losses associated with debt securities are primarily due to widening credit spreads or rising risk-free rates since purchase. As described below, the Company performed analyses of the financial performance of the underlying issues in an unrealized loss position and believes that recovery of the entire amortized cost of each such security is expected.

Evaluation of Available-for-Sale Debt Securities for Credit Loss

The credit loss evaluation for a debt security may consider one or more of the following:

•the extent to which the fair value is below amortized cost;
•changes in ratings;
•whether a significant covenant has been breached;
•assessments of the issuer’s ability to make scheduled debt payments based upon judgments related to its current and projected financial position, including whether it has filed or indicated a possibility of filing for bankruptcy, has missed or announced it intends to miss a scheduled debt service payment, or has experienced a specific material adverse change that may impair its creditworthiness;
•the existence of, and realizable value of, any collateral backing the obligations;
•the macro-economic and micro-economic outlooks for the issuer and its industry;
•for asset-backed securities: includes an assessment of future estimated cash flows under expected and stress case scenarios to identify potential shortfalls in contractual payments. These estimated cash flows are developed using available performance indicators from the underlying assets, such as current and projected default or delinquency rates, levels of credit enhancement, current subordination levels, vintage, expected loss severity and other relevant characteristics; and
•for mortgage-backed securities, credit losses are assessed using a cash flow model that estimates the cash flows on the underlying mortgages, using the security-specific collateral characteristics and transaction structure. The model estimates cash flows from the underlying mortgage loans and distributes those cash flows to various tranches of securities based on the transaction structure and any existing subordination and credit enhancements. The cash flow model incorporates actual cash flows on the mortgage-backed securities through the current period and then projects the remaining cash flows using a number of assumptions, including prepayment timing, default rates and loss severity. Specifically, for prime and Alt-A RMBS, the assumed default percentage is dependent on the severity of delinquency status, with foreclosures and real estate owned receiving higher rates, but also includes the currently performing loans.

These estimates reflect a combination of data derived by third parties and internally developed assumptions. Where possible, this data is benchmarked against other third-party sources. In addition, these estimates are extrapolated along a default timing curve to estimate the total lifetime pool default rate. When a credit loss is determined to exist and the present value of cash flows expected to be collected is less than the amortized cost of the security, an allowance for credit loss is recorded along with a charge to net gains (losses) on derivatives and investments, limited by the amount that the fair value is less than amortized cost. Any remaining unrealized loss after recording the allowance for credit loss is the non-credit amount and is recorded to other comprehensive income.

The allowance for credit loss for specific debt securities may be increased or reversed in subsequent periods due to changes in the assessment of the present value of cash flows that are expected to be collected. Any changes to the allowance for credit loss are recorded as a provision for (or reversal of) credit loss expense in net gains (losses) on derivatives and investments.
The roll-forward of the allowance for credit loss for available-for-sale securities by sector is as follows (in millions):

Three Months Ended March 31, 2026US
government
securities		Other government securitiesPublic
utilities		Corporate securitiesResidential mortgage-backedCommercial mortgage-backedOther
asset-backed securities		Total
Balance at January 1, 2026$—$—$—$—$4$—$7$11
Additions for which credit loss was not previously recorded———6———6
Changes for securities with previously recorded credit loss————(1)—2827
Additions for purchases of PCD debt securities (1)
————————
Reductions from charge-offs——————(18)(18)
Reductions for securities disposed————(2)—(7)(9)
Securities intended/required to be sold before recovery of amortized cost basis————————
Balance at March 31, 2026 (2)
$—$—$—$6$1$—$10$17

Three Months Ended March 31, 2025US
government
securities		Other government securitiesPublic
utilities		Corporate securitiesResidential mortgage-backedCommercial mortgage-backedOther
asset-backed securities		Total
Balance at January 1, 2025$—$—$—$8$6$—$25$39
Additions for which credit loss was not previously recorded—————1—1
Changes for securities with previously recorded credit loss——————11
Additions for purchases of PCD debt securities (1)
————————
Reductions from charge-offs————————
Reductions for securities disposed————————
Securities intended/required to be sold before recovery of amortized cost basis—————(1)—(1)
Balance at March 31, 2025 (2)
$—$—$—$8$6$—$26$40

(1) Represents purchased credit-deteriorated ("PCD") fixed maturity available-for-sale securities.
(2) Accrued interest receivable on debt securities totaled $519 million and $448 million as of March 31, 2026 and 2025, respectively, and was excluded from the determination of credit losses for the three months ended March 31, 2026 and 2025.
Net Investment Income

The sources of net investment income were as follows (in millions):

Three Months Ended March 31,
20262025
Debt securities (1)
$472 $431 
Equity securities (2)
(59)1 
Mortgage loans 99 83 
Policy loans 16 17 
Limited partnerships 19 38 
Other investment income 57 52 
Total investment income excluding funds withheld assets604 622 
Investment expenses (3)
(63)(94)
Net investment income excluding funds withheld assets541 528 
Net investment income on funds withheld assets (see Note 8)199 227 
Net investment income $740 $755 
(1) Includes changes in fair value gains (losses) on trading securities and includes $(72) million and $(10) million for the three months ended March 31, 2026 and 2025, respectively, related to the change in fair value for securities carried under the fair value option.
(2) Includes changes in fair value of TPG common stock. See discussion above on our Long-term Strategic Partnership with TPG.
(3) Includes expenses from consolidated variable interest entities, which includes changes in fair value of notes issued by those entities, of $(16) million and $(32) million for the three months ended March 31, 2026 and 2025, respectively.

Unrealized gains (losses) included in investment income that were recognized on equity securities held were $(64) million and $(2) million for the three months ended March 31, 2026 and 2025, respectively.

Net Gains (Losses) on Derivatives and Investments

The following table summarizes net gains (losses) on derivatives and investments (in millions):

Three Months Ended March 31,
20262025
Available-for-sale securities
    Realized gains on sale $7 $3 
    Realized losses on sale (9)(12)
    Credit loss income (expense) (8)— 
Credit loss income (expense) on mortgage loans(26)(11)
Other (1)
(11)(46)
Net gains (losses) excluding derivatives and funds withheld assets (47)(66)
Net gains (losses) on derivative instruments (see Note 5) 330 1,409 
Net gains (losses) on derivatives and investments283 1,343 
Net gains (losses) on funds withheld reinsurance treaties (see Note 8) (159)(388)
     Total net gains (losses) on derivatives and investments $124 $955 
(1) Includes the foreign currency gain or loss related to foreign denominated trust instruments supporting funding agreements.
Net gains (losses) on funds withheld reinsurance treaties represents income (loss) from the sale of investments held in segregated funds withheld accounts in support of reinsurance agreements for which Jackson retains legal ownership of the underlying investments. These gains (losses) are increased or decreased by:
•changes in the embedded derivative liability related to the Athene Life Re Ltd. ("Athene") funds withheld coinsurance agreement (the “Athene Reinsurance Transaction”),
•changes in the related funds withheld payable, as all economic performance of the investments held in the segregated accounts inure to the benefit of the reinsurers under the respective reinsurance agreements, and
•amortization of the difference between book value and fair value of the investments as of the effective date of the reinsurance agreements.

The aggregate fair value of securities sold at a loss for the three months ended March 31, 2026 and 2025 was $288 million and $669 million, which was approximately 94% and 95% of book value, respectively.

Proceeds from sales of available-for-sale debt securities were $636 million and $934 million during the three months ended March 31, 2026 and 2025, respectively.

Consolidated Variable Interest Entities ("VIEs")

The Company concluded that the following entities are VIEs and that the Company is the primary beneficiary as it has both the power to direct the most significant activities of the VIE and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. In each case, the Company’s exposure to loss is limited to the capital invested plus, in the cases of the limited liability companies ("LLCs") and the Private Equity Funds, unfunded capital commitments. Creditors of the consolidated VIEs do not have recourse to the general credit of the Company:

•The Company funds affiliated LLCs to facilitate the issuance of collateralized loan obligations ("CLOs"). The Company's policy is to record the consolidation of VIEs on a one-month lag due to the timing of when information is available from the VIE.

•Private Equity Funds VII – IX and Strategic Opportunity Fund I are limited partnership structures that invest the ownership capital in portfolios of various other limited partnership structures. Private Equity Fund IX was funded in August 2025 and Strategic Opportunity Fund I was funded in June 2025.

•PPM Investment Grade Private Credit Fund is a private fund organized as a series of a Delaware LLC that invests primarily in fixed rate, privately issued, investment grade instruments. The series was funded in January 2026.

Asset and liability information for the consolidated VIEs included on the Condensed Consolidated Balance Sheets are as follows (in millions):

March 31, 2026December 31, 2025
Assets
Debt securities, at fair value under fair value option$2,650 $2,698 
Equity securities 8 6 
Other invested assets1,083 979 
Cash and cash equivalents176 154 
Other assets 71 51 
Total assets$3,988 $3,888 
Liabilities
Notes issued by consolidated VIEs, at fair value under fair value option$2,543 $2,578 
Other liabilities323 258 
Total other liabilities 2,866 2,836 
Total liabilities$2,866 $2,836 
Equity
Noncontrolling interests$404 $389 
Unconsolidated VIEs

The Company has concluded the following entities are VIEs but does not consolidate them. Based on analysis of the limited partnerships ("LPs"), LLCs and the mutual funds, the Company is not the primary beneficiary of the VIE because the Company lacks the power to direct the activities of the VIE that most significantly impact the VIE's performance or lacks the obligation to absorb losses or the right to receive benefits that could potentially be significant to the entities, or lacks both.

•The carrying amounts of the Company’s investments in certain LPs and LLCs are recognized in other invested assets on the Condensed Consolidated Balance Sheets. Unfunded capital commitments for these investments are detailed in Note 16 of these Notes to Condensed Consolidated Financial Statements. The Company’s exposure to loss was limited to $2,784 million and $2,709 million as of March 31, 2026 and December 31, 2025, respectively, representing the aggregate capital invested and unfunded capital commitments related to the LPs and LLCs at those dates. The capital invested in an LP or LLC equals the original capital contributed, increased for additional capital contributed after the initial investment, and reduced for any returns of capital from the LP or LLC. LPs and LLCs are carried at fair value.

•The Company's investments in certain mutual funds are recognized in equity securities on the Condensed Consolidated Balance Sheets and were $18 million and $21 million as of March 31, 2026 and December 31, 2025, respectively. The Company’s maximum exposure to loss on these mutual funds is limited to the amortized cost for these investments.

The Company makes investments in structured debt securities issued by VIEs for which it is not the manager. These structured debt securities include RMBS, Commercial Mortgage-Backed Securities ("CMBS"), and Asset-Backed Securities ("ABS"). The Company does not consolidate the securitization trusts utilized in these transactions because it does not have the power to direct the activities that most significantly impact the economic performance of these securitization trusts. The Company does not consider its continuing involvement with these VIEs to be significant because it either invests in securities issued by the VIE and was not involved in the design of the VIE or no transfers have occurred between the Company and the VIE. The Company’s maximum exposure to loss on these structured debt securities is limited to the amortized cost of these investments. The Company does not have any further contractual obligations to the VIE. The Company recognizes the variable interest in these VIEs at fair value on the Condensed Consolidated Balance Sheets.

Commercial and Residential Mortgage Loans

The following table shows commercial mortgage loans, residential mortgage loans, and the respective accrued interest thereon (in millions):

March 31, 2026December 31, 2025
Commercial mortgage loans (1)
$9,137 $8,957 
Accrued interest receivable on commercial mortgage loans35 34 
Residential mortgage loans (2)
1,307 1,254 
Accrued interest receivable on residential mortgage loans13 13 
(1) Net of an allowance for credit losses of $137 million and $117 million at each date, respectively.
(2) Net of an allowance for credit losses of $22 million and $16 million at each date, respectively.

At March 31, 2026, commercial mortgage loans were collateralized by properties located in 36 states, the District of Columbia, and Europe, while residential mortgage loans were collateralized by properties located in 49 states, the District of Columbia, Mexico, and Europe.
Evaluation for Credit Losses on Mortgage Loans

The Company reviews mortgage loans that are not carried at fair value under the fair value option on a quarterly basis to estimate the ACL with changes in the ACL recorded in net gains (losses) on derivatives and investments. Apart from an ACL recorded on individual mortgage loans where the borrower is experiencing financial difficulties, the Company records an ACL on the pool of mortgage loans based on lifetime expected credit losses. The Company utilizes a third-party forecasting model to estimate lifetime expected credit losses at a loan level for mortgage loans. The model forecasts net operating income and property values for the economic scenario selected. The debt service coverage ratios (“DSCR”) and loan to values (“LTV”) are calculated over the forecastable period by comparing the projected net operating income and property valuations to the loan payment and principal amounts of each loan. The model utilizes historical mortgage loan performance based on DSCRs and LTV to derive probability of default and expected losses based on the economic scenario that is similar to the Company’s expectations of economic factors such as unemployment, gross domestic product growth, and interest rates. The Company determined the forecastable period to be reasonable and supportable for a period of two years beyond the end of the reporting period. Over the following one-year period, the model reverts to the historical performance of the portfolio for the remainder of the contractual term of the loans. In cases where the Company does not have an appropriate length of historical performance, the relevant historical rate from an index or the lifetime expected credit loss calculated from the model may be used.

Unfunded commitments are included in the model and an ACL is determined accordingly. Credit loss estimates are pooled by property type and the Company does not include accrued interest in the determination of ACL.

For individual loans or for types of loans for which the third-party model is deemed not suitable, the Company utilizes relevant current market data, industry data, and publicly available historical loss rates to calculate an estimate of the lifetime expected credit loss.

Mortgage loans on real estate deemed uncollectible are charged against the ACL, and subsequent recoveries, if any, are credited to the ACL, limited to the aggregate of amounts previously charged-off and expected to be charged-off. Mortgage loans on real estate are presented net of the ACL on the Condensed Consolidated Balance Sheets.

The following table provides the change in the allowance for credit losses in the Company’s mortgage loan portfolios (in millions):

Three Months Ended March 31, 2026ApartmentHotelOfficeRetailWarehouseOtherResidential MortgageTotal
Balance at January 1, 2026$32 $11 $28 $17 $27 $2 $16 $133 
Charge offs, net of recoveries(1)— (4)— — — — (5)
Reductions for mortgages disposed— — — — — — — — 
Additions from purchase of PCD mortgage loans— — — — — — — — 
Provision (release)(8)(7)32 13 (4)(1)6 31 
Balance at March 31, 2026 (1) (2)
$23 $4 $56 $30 $23 $1 $22 $159 
Three Months Ended March 31, 2025ApartmentHotelOfficeRetailWarehouseOtherResidential MortgageTotal
Balance at January 1, 2025$23 $7 $44 $19 $20 $3 $5 $121 
Charge offs, net of recoveries— — (6)— — — — (6)
Reductions for mortgages disposed— — — — — — — — 
Additions from purchase of PCD mortgage loans— — — — — — — — 
Provision (release)5 — 2 — — (1)9 15 
Balance at March 31, 2025 (1) (2)
$28 $7 $40 $19 $20 $2 $14 $130 
(1) Accrued interest receivable totaled $48 million and $42 million as of March 31, 2026 and 2025, respectively, and was excluded from the determination of credit losses.
(2) Accrued interest amounting to nil and nil was written off as of March 31, 2026 and 2025, respectively, relating to loans that were greater than 90 days delinquent or in the process of foreclosure.
The Company’s mortgage loans that are current and in good standing are accruing interest. Interest is not accrued on loans greater than 90 days delinquent and in process of foreclosure, when deemed uncollectible. Delinquency status is determined from the date of the first missed contractual payment.

The following table provides information about our residential mortgage loans in process of foreclosure (in millions):

March 31, 2026December 31, 2025
Recorded investment (1)
$27$38
Unpaid principal balance3045
Related loan allowance—1
Average recorded investment2729
Investment income recognized—1

(1) At March 31, 2026 and December 31, 2025, includes $4 million and $4 million, respectively, of loans in process of foreclosure, all of which are loans supported with insurance or other guarantees provided by various governmental programs.

The following tables provide information about the credit quality with vintage year and category of mortgage loans (dollars in millions):

March 31, 2026
20262025202420232022PriorRevolving
Loans		Total% of
Total
Commercial mortgage loans
Loan to value ratios (1):
Less than 70%$476 $1,126 $507 $473 $420 $4,448 $— $7,450 81 %
70% - 80%— 247 130 44 180 700 — 1,301 14 %
80% - 100% — 40 1 25 46 132 — 244 3 %
Greater than 100%— — 2 — 55 85 — 142 2 %
Total commercial mortgage loans476 1,413 640 542 701 5,365 — 9,137 100 %
Debt service coverage ratios (2):
Greater than 1.20x475 1,320 612 486 586 4,841 — 8,320 91 %
1.00x - 1.20x — 43 24 48 55 379 — 549 6 %
Less than 1.00x— — — — 51 144 — 195 2 %
Non-income producing properties1 50 4 8 9 1 — 73 1 %
Total commercial mortgage loans476 1,413 640 542 701 5,365 — 9,137 100 %
Residential mortgage loans
Performing27 589 202 10 13 414 — 1,255 96 %
Nonperforming— 2 4 9 8 29 — 52 4 %
Total residential mortgage loans27 591 206 19 21 443 — 1,307 100 %
Total mortgage loans$503 $2,004 $846 $561 $722 $5,808 $— $10,444 100 %
(1) The loan to value ratio is derived from current loan balance divided by the fair value of the property. The fair value of the underlying commercial properties is updated annually for each mortgage loan.
(2) The debt service coverage ratio is calculated using the most recently reported operating income results from property operations divided by annual debt service.
December 31, 2025
20252024202320222021PriorRevolving
Loans		Total% of
Total
Commercial mortgage loans
Loan to value ratios (1):
Less than 70%$1,140 $508 $521 $466 $345 $4,296 $— $7,276 81 %
70% - 80%206 129 62 221 353 316 — 1,287 14 %
80% - 100% — — 25 46 24 151 — 246 3 %
Greater than 100%— 2 — 56 — 90 — 148 2 %
Total commercial mortgage loans1,346 639 608 789 722 4,853 — 8,957 100 %
Debt service coverage ratios (2):
Greater than 1.20x1,313 615 538 594 434 4,591 — 8,085 90 %
1.00x - 1.20x 33 24 70 145 174 231 — 677 8 %
Less than 1.00x— — — 50 114 31 — 195 2 %
Total commercial mortgage loans1,346 639 608 789 722 4,853 — 8,957 100 %
Residential mortgage loans
Performing487 223 17 17 71 375 — 1,190 95 %
Nonperforming— 4 16 20 3 21 — 64 5 %
Total residential mortgage loans487 227 33 37 74 396 — 1,254 100 %
Total mortgage loans$1,833 $866 $641 $826 $796 $5,249 $— $10,211 100 %

(1) The loan to value ratio is derived from current loan balance divided by the fair value of the property. The fair value of the underlying commercial properties is updated annually for each mortgage loan.
(2) The debt service coverage ratio is calculated using the most recently reported operating income results from property operations divided by annual debt service.

Accruing Loans (1)
March 31, 2026Current
30-89 Days Past Due (2)
90 Days or Greater Past Due (2)
Non-accrual Loans (1)
Total Loans (1)
Non-accrual Loans with No Allowance (1)
Interest Income on Non-accrual Loans
Apartment$3,189 $6 $— $16 $3,211 $— $— 
Hotel762 — — — 762 — — 
Office1,056 10 — 83 1,149 — — 
Retail1,652 — — — 1,652 — — 
Warehouse2,136 — — — 2,136 — — 
Other364 — — — 364 — — 
Total commercial9,159 16 — 99 9,274 — — 
Residential (2)
1,222 51 21 35 1,329 — — 
Total$10,381 $67 $21 $134 10,603 $— $— 
ACL(159)
Total with ACL$10,444 
Accruing Loans (1)
December 31, 2025Current
30-89 Days Past Due (2)
90 Days or Greater Past Due (2)
Non-accrual Loans (1)
Total Loans (1)
Non-accrual Loans with No Allowance (1)
Interest Income on Non-accrual Loans
Apartment$2,866 $— $— $— $2,866 $— $— 
Hotel789 — — — 789 — — 
Office1,062 — — 109 1,171 — — 
Retail1,664 — — — 1,664 — — 
Warehouse2,217 — — — 2,217 — — 
Other367 — — — 367 — — 
Total commercial8,965 — — 109 9,074 — — 
Residential (2)
1,124 69 16 61 1,270 — 2 
Total$10,089 $69 $16 $170 $10,344 $— $2 
ACL(133)
Total with ACL$10,211 

(1) Amortized cost or fair value for loans carried at fair value under the fair value option.
(2) At March 31, 2026 and December 31, 2025, includes $15 million and $19 million, respectively, of loans 30-89 days past due and $21 million and $16 million, respectively, of loans 90 days or greater past due and supported with insurance or other guarantees provided by various governmental programs.

The following table provides information about the mortgage loans modified during the periods indicated to borrowers experiencing financial difficulty (dollars in millions):

Term Extension
Amortized
Cost Basis		Percent of
Total Class
Three Months Ended March 31, 2026
Commercial mortgage loans$10 0.11 %
Three Months Ended March 31, 2025
Commercial mortgage loans$— — %

As of March 31, 2026, the above modified loans had $8 million unfunded commitments.
The following table describes the financial effect of the modifications made to the loans noted above:

Term Extension
Financial Effect
Three Months Ended March 31, 2026
Commercial mortgage loans
 Granted extension of term for 42 months and rate converted from variable to fixed.
The Company closely monitors the performance of the loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following table depicts the performance of loans that have been modified in the last 12 months (in millions):

Payment Status (Amortized Cost Basis)
Current30-89 Days Past Due90+ Days Past Due
March 31, 2026
Commercial mortgage loans$— $10 $— 
March 31, 2025
Commercial mortgage loans$— $— $— 

As of March 31, 2026 and 2025, stressed mortgage loans for which the Company is dependent, or expects to be dependent, on the underlying property to satisfy repayment were $24 million and $29 million, respectively.

Policy Loans

Policy loans are loans the Company issues to contract holders that use the cash surrender value of their life insurance policy or annuity contract as collateral. At March 31, 2026 and December 31, 2025, $3.6 billion and $3.5 billion of these loans were carried at fair value, which the Company believes is equal to unpaid principal balances, plus accrued investment income. At both March 31, 2026 and December 31, 2025, the Company had $0.9 billion of policy loans not held as collateral for reinsurance, which were carried at the unpaid principal balances.

Other Invested Assets

Other invested assets primarily include investments in:

•Federal Home Loan Bank of Indianapolis ("FHLBI") capital stock, which is carried at cost and adjusted for any impairment. At both March 31, 2026 and December 31, 2025, FHLBI capital stock had a carrying value of $119 million;
•limited partnerships (“LPs”), which are carried at values determined by using the proportion of the Company’s investment in each fund (Net Asset Value (“NAV”) equivalent) as a practical expedient for fair value, and generally are recorded on a three-month lag, with changes in value included in net investment income. At March 31, 2026 and December 31, 2025, investments in LPs had carrying values of $2.9 billion and $2.8 billion, respectively; and
•real estate, which is carried at the lower of depreciated cost or fair value and real estate occupied by the Company is carried at depreciated cost. At March 31, 2026 and December 31, 2025, real estate totaling $231 million and $230 million, respectively, included foreclosed properties with a book value of $22 million and $20 million at March 31, 2026 and December 31, 2025, respectively.

Securities Lending

The Company has entered into securities lending agreements with agent banks whereby blocks of securities are loaned to third parties, primarily major brokerage firms. As of March 31, 2026 and December 31, 2025, the estimated fair value of loaned securities was $52 million and $34 million, respectively. The agreements require a minimum of 102% of the fair value of the loaned securities to be held as collateral, calculated daily. To further minimize the credit risks related to these programs, the financial condition of counterparties is monitored on a regular basis. At March 31, 2026 and December 31, 2025, cash collateral received in the amount of $54 million and $35 million, respectively, was invested by the agent banks and included in cash and cash equivalents of the Company. A securities lending payable for the overnight and continuous loans is included in liabilities in the amount of cash collateral received. Securities lending transactions are used to generate income. Income and expenses associated with these transactions are reported as net investment income.
Repurchase Agreements

The Company routinely enters into repurchase agreements whereby the Company agrees to sell and repurchase securities. These agreements are accounted for as financing transactions, with the assets and associated liabilities included in the Condensed Consolidated Balance Sheets.

At March 31, 2026 and December 31, 2025, the outstanding repurchase agreement balance was $0.5 billion and $1.0 billion, respectively, having maturities within 30 days, and was included within repurchase agreements and securities lending payable in the Condensed Consolidated Balance Sheets. These repurchase agreements were collateralized with U.S. Treasury securities and corporate securities of $0.5 billion and $1.0 billion, respectively, at March 31, 2026 and December 31, 2025.

In the event of a decline in the fair value of the pledged collateral under these agreements, the Company may be required to transfer cash or additional securities as pledged collateral. Interest expense totaled $2 million and $12 million for the three months ended March 31, 2026 and 2025, respectively, and is included within net investment income.

Collateral Upgrade Transactions

During the first quarter of 2024, Jackson executed certain paired repurchase and reverse repurchase transactions totaling $1.5 billion pursuant to master repurchase agreements with participating bank counterparties. Under these transactions, the Company lends securities (e.g., corporate debt securities) to bank counterparties in exchange for U.S. Treasury securities that the Company then uses to provide as collateral. The paired repurchase and reverse repurchase transactions are settled on a net basis. As a result, there was no cash exchanged at initiation of these agreements. The paired transactions are reported net within the Condensed Consolidated Balance Sheets. These transactions are evergreen and require at least 150-days' notice prior to termination.

At both March 31, 2026 and December 31, 2025, the fair value of the U.S. treasuries received was $1.5 billion, collateralized with corporate securities with a fair value of $1.6 billion. Subsequently, the Company provided these U.S. Treasury securities as collateral for derivative trades, and they are included as part of the derivative collateral disclosures.

In the event of a decline in the fair value of the pledged collateral under these agreements, the Company may be required to transfer cash or additional securities as pledged collateral. Gross interest income of $14 million and $16 million and gross interest expense of $16 million and $19 million for the three months ended March 31, 2026 and 2025, respectively, are included within net investment income.