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Stock impact report

Jackson Financial's Complexity Creates Opportunity [Seeking Alpha]

Jackson Financial Inc. Class A (JXN) 
Company Research Source: Seeking Alpha
Kobus LouwShares of Jackson Financial (NYSE:JXNreach book value, I see substantial value in what is a â??melting ice cubeâ? business that generates significant cash flow for capital return to shareholders.Seeking AlphaIn the companyâ??ssecond quarterconsensusLarge differences between net income and operating income are common for Jackson and peer companieslike Brighthouse Financial (BHF). Jackson National is an annuity provider. When you buy an annuity, you give the insurance company money upfront and then receive monthly payments, either fixed or tied to a degree to market performance. Annuity providers price these annuities based on prevailing interest rates and market conditions. They then hedge out the market risk to smooth results over time and protect against poor returns that could make it difficult to make the required payments to the policyholders.The gains and losses on these hedges relative to the market performance can move dramatically quarter by quarter, but if properly Show less Read more
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