Other contract holder funds represent the policyholder account balance on our universal life-type products, investment contracts, and the fair value of the embedded derivatives associated with the indexed crediting features on our fixed index annuities and RILA.

•Universal life-type products: Universal life-type contracts have, as a principal component, an account balance on which interest is credited to policyholders and assessments are deducted for mortality risk and contract administration. The account balance is recognized as a liability within other contract holder funds, and the liability is updated each period for fee and assessment deductions and increased for interest or returns credited to the account balance.

Certain of our universal life-type contracts contain features that are not classified as market risk benefits or embedded derivatives but provide additional benefits beyond the account balance or base insurance coverage for which a liability in addition to the account balance is necessary. These additional liabilities for death or other insurance benefits are reported as a component of reserves for future policy benefits and claims payable in the Condensed Consolidated Balance Sheets. See Note 9 - Reserves for Future Policy Benefits and Claims Payable of these Notes to the Condensed Consolidated Financial Statements for more information regarding these additional liabilities.

•Investment contracts: Certain contracts without significant mortality or morbidity risk and certain annuities that lack insurance risk are treated as investment contracts. For investment contracts, payments received are reported as liabilities and accounted for in a manner consistent with the accounting for interest-bearing or other financial instruments, within other contract holder funds.

The Company issues a variety of annuity products including variable annuities, registered index linked annuities, fixed annuities, fixed index annuities, and payout annuities. For annuity contracts that are classified as investment contracts, the liability is the account balance as of the reporting date, reported within the other contract holder funds. For the variable annuity products, only the allocations to fixed fund options are reported in other contract holder funds.

•Embedded derivatives - product liabilities: For our RILA and fixed index annuities, the equity-linked option issued by the Company is accounted for at fair value as an embedded derivative on the Company's Condensed Consolidated Balance Sheets as a component of other contract holder funds, with changes in fair value recorded in net income.

The fair value of the embedded derivative for the FIA and RILA products is determined using an option-budget method with capital market inputs of market index returns and discount rates as well as actuarial assumptions including lapse, mortality and withdrawal rates. We typically update our actuarial assumptions annually, unless a material change is observed in an interim period that we feel is indicative of a long-term trend.

Our annuity products may contain certain features or guarantees that are classified as MRBs. These market risk benefits are a component of the market risk benefits line items in the Condensed Consolidated Balance Sheets. See Note 12 - Market Risk Benefits of these Notes to Condensed Consolidated Financial Statements for more information regarding market risk benefits.

The Company’s institutional products business is comprised of the guaranteed investment contracts, funding agreements backed by medium-term notes ("FABN funding agreements"), funding agreements backed by commercial paper ("FABCP funding agreements"), and funding agreements issued in conjunction with the Company's participation in the U.S. Federal Home Loan Bank ("FHLB") program ("FHLB funding agreements") described below.

•FABN funding agreements: Jackson has established a funding agreement-backed note (“FABN”) program, pursuant to which a special purpose statutory business trust may issue medium-term notes and deposit the proceeds with Jackson pursuant to a funding agreement issued by Jackson to the trust. As of March 31, 2026, there was remaining authority to issue up to $4.1 billion of medium-term notes under the program. The carrying values of the FABN funding agreements at March 31, 2026 and December 31, 2025 totaled $7.5 billion and $8.0 billion, respectively.

Liabilities for foreign currency denominated FABN funding agreements are adjusted to reflect the effects of foreign currency translation gains and losses using exchange rates as of the reporting date. Foreign currency translation gains and losses are included in net gains (losses) on derivatives and investments. FABN funding agreements issued in a foreign currency have been hedged for changes in exchange rates using cross-currency swaps.

•FABCP funding agreements: In the second quarter of 2025, Jackson established an FABCP funding agreement program, pursuant to which a special purpose limited liability company may issue commercial paper and deposit the proceeds with Jackson under funding agreements issued by Jackson to the limited liability company. The current maximum aggregate principal amount permitted to be outstanding at any one time under the program is $3.0 billion. As of March 31, 2026, the Company had $1.3 billion outstanding under the program.

•FHLB funding agreements: Jackson is a member of the FHLBI primarily for the purpose of participating in the bank’s mortgage-collateralized loan advance program with long-term funding facilities. Advances are in the form of funding agreements issued to, and short-term and long-term borrowings from, FHLBI. At both March 31, 2026 and December 31, 2025, the Company held $119 million of FHLBI capital stock, respectively, supporting $1.9 billion in FHLB funding agreements and short-term and long-term borrowings at both March 31, 2026 and December 31, 2025. At both March 31, 2026 and December 31, 2025, the FHLB funding agreements and short-term and long-term borrowings were collateralized by mortgage-related securities and commercial mortgage loans with a carrying value of $2.8 billion.


	March 31, 2026		December 31, 2025
Variable Annuity	$	6,193	$	6,351
RILA	21,394		20,282
Fixed Annuity	9,300		9,494
Fixed Index Annuities	8,255		7,946
Payout Annuity	840		854
Closed Block Life	10,381		10,494
Closed Block Annuity	1,035		1,057
Institutional Products	11,141		11,021
Other Product Lines	164		164
Total other contract holder funds	$	68,703	$	67,663


							Fixed				Closed		Closed
	Variable				Fixed		Index		Payout		Block		Block
	Annuity		RILA		Annuity		Annuities		Annuity		Life		Annuity		Total
Balance as of January 1, 2026	$	6,351	$	20,282	$	9,494	$	7,946	$	854	$	10,494	$	1,057	$	56,478
Deposits	196		2,010		89		677		45		66		1		3,084
Surrenders, withdrawals and benefits	(516)		(164)		(343)		(341)		(66)		(207)		(32)		(1,669)
Net transfers from (to) separate accounts	134		—		—		—		—		—		—		134
Investment performance / change in value of equity option	—		(757)		—		(17)		—		—		—		(774)
Interest credited	39		22		89		40		7		156		9		362
Policy charges and other	(11)		1		(29)		(50)		—		(128)		—		(217)
Balance as of March 31, 2026	$	6,193	$	21,394	$	9,300	$	8,255	$	840	$	10,381	$	1,035	$	57,398


							Fixed				Closed		Closed
	Variable				Fixed		Index		Payout		Block		Block
	Annuity		RILA		Annuity		Annuities		Annuity		Life		Annuity		Total
Balance as of January 1, 2025	$	7,206	$	11,685	$	9,615	$	8,515	$	844	$	10,750	$	1,149	$	49,764
Deposits	855		6,926		1,085		816		220		272		3		10,177
Surrenders, withdrawals and benefits	(2,204)		(399)		(1,392)		(1,596)		(238)		(655)		(132)		(6,616)
Net transfers from (to) separate accounts	372		—		—		—		—		—		—		372
Investment performance / change in value of equity option	—		2,002		—		156		—		—		—		2,158
Interest credited	182		66		350		150		28		631		38		1,445
Policy charges and other	(60)		2		(164)		(95)		—		(504)		(1)		(822)
Balance as of December 31, 2025	$	6,351	$	20,282	$	9,494	$	7,946	$	854	$	10,494	$	1,057	$	56,478


										Fixed						Closed			Closed
	Variable						Fixed			Index			Payout			Block			Block
	Annuity			RILA			Annuity			Annuities			Annuity			Life			Annuity
March 31, 2026
Weighted-average crediting rate (1)	2.52		%	0.41		%	3.83		%	1.94		%	3.33		%	6.01		%	3.48		%
Net amount at risk (2)	$	—		$	—		$	—		$	—		$	—		$	14,592		$	—
Cash surrender value (3)	$	6,190		$	20,861		$	9,087		$	8,059		$	—		$	10,332		$	1,035
December 31, 2025
Weighted-average crediting rate (1)	2.87		%	0.33		%	3.69		%	1.89		%	3.28		%	6.01		%	3.60		%
Net amount at risk (2)	$	—		$	—		$	—		$	—		$	—		$	14,750		$	—
Cash surrender value (3)	$	6,330		$	19,736		$	9,277		$	7,711		$	—		$	10,445		$	1,057

(2) Net amount at risk represents the standard excess benefit base for guaranteed death benefits on universal life type products. The net amount at risk associated with market risk benefits are presented within Note 12 - Market Risk Benefits of these Notes to Condensed Consolidated Financial Statements.

At March 31, 2026 and December 31, 2025, excluding reinsurance business, approximately 92% and 93%, respectively, of the Company’s annuity account values correspond to crediting rates that are at the minimum guaranteed interest rates. At March 31, 2026 and December 31, 2025, excluding reinsurance business, approximately 82% and 82%, respectively, of the Company’s closed block life account values correspond to crediting rates that are at the minimum guaranteed interest rates.

The following table presents contract holder account balances invested in fixed account funds by range of guaranteed minimum crediting rates and the related range of the difference between rates being credited to other contract holder funds and the respective guaranteed minimums (in millions):


	March 31, 2026
	At Guaranteed		1 Basis Point-50		51 Basis Points-150		Greater Than 150
Range of Guaranteed Minimum Crediting Rate	Minimum		Basis Points Above		Basis Points Above		Basis Points Above		Total
Variable Annuities
0.00%-1.50%	$	—	$	—	$	—	$	—	$	—
1.51%-2.50%	4,153		—		125		—		4,278
Greater than 2.50%	1,915		—		—		—		1,915
Total	$	6,068	$	—	$	125	$	—	$	6,193

RILA
0.00%-1.50%	$	5	$	—	$	3	$	3	$	11
1.51%-2.50%	—		—		24		—		24
Greater than 2.50%	113		109		—		—		222
Total	$	118	$	109	$	27	$	3	$	257

Fixed Annuities
0.00%-1.50%	$	24	$	31	$	11	$	1	$	67
1.51%-2.50%	18		1		41		4		64
Greater than 2.50%	3,029		32		—		277		3,338
Total	$	3,071	$	64	$	52	$	282	$	3,469

Fixed Index Annuities
0.00%-1.50%	$	3	$	11	$	2	$	27	$	43
1.51%-2.50%	—		24		—		12		36
Greater than 2.50%	34		5		82		46		167
Total	$	37	$	40	$	84	$	85	$	246

Closed Block Life
0.00%-1.50%	$	—	$	—	$	—	$	—	$	—
1.51%-2.50%	1		10		—		—		11
Greater than 2.50%	5,189		382		709		5		6,285
Total	$	5,190	$	392	$	709	$	5	$	6,296

Closed Block Annuity
0.00%-1.50%	$	—	$	—	$	—	$	—	$	—
1.51%-2.50%	—		—		1		11		12
Greater than 2.50%	850		17		24		—		891
Total	$	850	$	17	$	25	$	11	$	903


	December 31, 2025
	At Guaranteed		1 Basis Point-50		51 Basis Points-150		Greater Than 150
Range of Guaranteed Minimum Crediting Rate	Minimum		Basis Points Above		Basis Points Above		Basis Points Above		Total
Variable Annuities
0.00%-1.50%	$	—	$	—	$	—	$	—	$	—
1.51%-2.50%	137		—		—		—		137
Greater than 2.50%	6,113		101		—		—		6,214
Total	$	6,250	$	101	$	—	$	—	$	6,351

RILA
0.00%-1.50%	$	5	$	—	$	3	$	3	$	11
1.51%-2.50%	—		—		—		—		—
Greater than 2.50%	136		93		—		—		229
Total	$	141	$	93	$	3	$	3	$	240

Fixed Annuities
0.00%-1.50%	$	25	$	37	$	12	$	28	$	102
1.51%-2.50%	16		1		1		—		18
Greater than 2.50%	3,001		33		—		278		3,312
Total	$	3,042	$	71	$	13	$	306	$	3,432

Fixed Index Annuities
0.00%-1.50%	$	3	$	11	$	2	$	28	$	44
1.51%-2.50%	—		—		—		—		—
Greater than 2.50%	36		—		86		53		175
Total	$	39	$	11	$	88	$	81	$	219

Closed Block Life
0.00%-1.50%	$	—	$	—	$	—	$	—	$	—
1.51%-2.50%	1		10		—		—		11
Greater than 2.50%	5,251		388		720		5		6,364
Total	$	5,252	$	398	$	720	$	5	$	6,375

Closed Block Annuity
0.00%-1.50%	$	—	$	—	$	—	$	—	$	—
1.51%-2.50%	—		—		1		11		12
Greater than 2.50%	872		18		24		—		914
Total	$	872	$	18	$	25	$	11	$	926

All long-duration insurance contracts and certain investment contracts are subject to MRB evaluation. MRBs are measured at fair value at the contract level and can be in either an asset or liability position. For contracts that contain multiple MRB features, the MRBs are valued together as a single compound MRB. Market risk benefit assets and Market risk benefit liabilities are reported separately on the Condensed Consolidated Balance Sheets.

Changes in fair value are reported in Net (gains) losses on market risk benefits in the Condensed Consolidated Income Statements. However, the change in fair value related to our own non-performance risk is reported as a component of other comprehensive income in Change in non-performance risk on market risk benefits on the Condensed Consolidated Statements of Comprehensive Income (Loss).

Additionally, when an annuitization occurs (for annuitization benefits) or upon extinguishment of the account balance (for withdrawal benefits), the balance related to the MRB is derecognized and the amount deducted (after derecognition of any related amount included in accumulated other comprehensive income) is used in the calculation of the liability for future policy benefits for the resulting payout annuity.

Variable annuity contracts issued by the Company offer various guaranteed minimum death, withdrawal, income and accumulation benefits. These guaranteed benefit features, as well as the reinsurance recoverable on the Company’s GMIB, are classified as MRBs and measured at fair value. The Company discontinued offering the GMIB in 2009.

Variable annuity guaranteed benefit features classified as MRBs, which have explicit fees, are measured using the attributed fee method. Under the attributed fee method, fair value is measured as the difference between the present value of projected future liabilities and the present value of projected attributed fees. At the inception of the contract, the Company attributes to the MRB a portion of total fees expected to be assessed against the contract holder to offset the projected claims over the lifetime of the contract. The attributed fee is expressed as a percentage of total projected future fees at inception of the contract. This percentage of total projected fees is considered a fixed term of the MRB feature and is held static over the life of the contract. This percentage may not exceed 100% of the total projected contract fees as of contract inception. As the Company may issue contracts that have projected future liabilities greater than the projected future guaranteed benefit fees at issue, the Company may also attribute mortality and expense charges when performing this calculation. In subsequent valuations, the present value of both future projected liabilities and projected attributed fees are remeasured based on current market conditions and policyholder behavior assumptions.

Where the guaranteed benefit features have explicit fees, the fair value of the MRB is measured as the difference between the present value of projected future guaranteed benefits and the present value of projected attributed fees (the attributed fee method). At inception of the contract, the Company attributes a percentage of total projected future fees expected to be assessed against the policyholder to offset the projected future guaranteed benefits over the lifetime of the contract. Where the projected attributed fees are sufficient to offset the projected guaranteed benefits at issue, the MRB has an initial fair value of zero resulting in no gain or loss on issuance of the contract. If the projected attributed fees are insufficient to offset the projected guaranteed benefits at issue, an MRB liability is recognized at issuance and the value of the MRB is deducted from the host contract liability resulting in no gain or loss on issuance of the contract.

If the guaranteed benefits do not have explicit fees, the fair value of the MRB is measured as the present value of projected future guaranteed benefits. At inception, the initial value of the MRB is deducted from the host contract liability resulting in no gain or loss on issuance of the contract.


	March 31, 2026						December 31, 2025
	Variable		Other				Variable		Other
	Annuities		Product Lines		Total		Annuities		Product Lines		Total
Market risk benefit - (assets)	$	(6,698)	$	(3)	$	(6,701)	$	(7,863)	$	(4)	$	(7,867)
Market risk benefit - liabilities	3,764		207		3,971		3,598		156		3,754
Market risk benefit - net (asset) liability	$	(2,934)	$	204	$	(2,730)	$	(4,265)	$	152	$	(4,113)


	Three Months Ended March 31, 2026		Year Ended December 31, 2025
Net MRB balance, beginning of period	$	(4,265)	$	(5,176)
Beginning of period cumulative effect of changes in non-performance risk	(17)		314
Net MRB balance, beginning of period, before effect of changes in non-performance risk	(4,282)		(4,862)
Effect of changes in interest rates	(407)		(72)
Effect of fund performance	671		(3,518)
Effect of changes in equity index volatility	551		509
Effect of expected policyholder behavior	215		758
Effect of actual policyholder behavior different from expected	110		572
Effect of time	508		1,957
Effect of changes in assumptions	3		374
Net MRB balance, end of period, before effect of changes in non-performance risk	(2,631)		(4,282)
End of period cumulative effect of changes in non-performance risk	(303)		17
Net MRB balance, end of period, gross	(2,934)		(4,265)

Reinsurance recoverable on market risk benefits at fair value, end of period	(43)		(41)
Net MRB balance, end of period, net of reinsurance	(2,977)		(4,306)

Weighted average attained age (years) (1)	71		70
Net amount at risk (2)	$	7,193	$	5,471

(2) Net amount at risk (NAR) is defined as of the valuation date for each contract as the greater of Death Benefit NAR (DBNAR) and Living Benefit NAR (LBNAR), as applicable, where DBNAR is the GMDB benefit base in excess of the account value, and LBNAR is the actuarial present value of guaranteed living benefits in excess of the account value.

The Company regularly evaluates the inputs and assumptions to be used to measure the fair value of the MRB assets and MRB liabilities. Non-performance risk is incorporated into the calculation through the adjustment of the risk-free rate curve based on credit spreads for debt and debt-like instruments issued by the Company or its insurance operating subsidiaries, adjusted, as necessary, to reflect the financial strength ratings of the issuing insurance subsidiaries.