Jackson Financial Inc. (NYSE:JXN) Q4 2022 Earnings Call Transcript

Daniel Bergman: Hi, thanks for taking the questions. this morning. First, I apologize if I missed it, but I just wanted to see if reserves were floored at the cash or undervalue at quarter end? And if not, how much of a gap was left. I think you’d put the comparable amount at about $1 billion at the end of the third quarter?

Laura Prieskorn: Yes, with the markets being up as they were in the fourth quarter, we were able to release a lot of those reserves. So I think we’re down to a couple of $200 million, $300 million level of reserves in excess of the cash value at the end of 2022.

Daniel Bergman: Got it. That’s great. And then just to separating the operating tax rate has been below 15% in the past 2 years, I think, by a pretty reasonable decent amount in 2022. So I’m not sure if LDTI will affect the tax rate, but I just wanted to see if we should still expect around 15% going forward? Or are we likely to remain below that level on that?

Laura Prieskorn: Yes. I think a bit below would be our general outlook on that. There shouldn’t be an impact from LDTI as a result of that. What really drives our tax rate is some of the permit differences related to dividend received deduction and that sort of thing. So generally, I would expect those things to still go forward under the same basis even under LDTI and would guide towards something below 15% as a general run rate, although it can vary, of course, period-to-period.

Daniel Bergman: Got it. Thanks so much.

Operator: Thank you. This concludes our Q&A session. So I’ll hand the call back over to Laura Prieskorn for closing remarks.

Laura Prieskorn: Great. Thank you to everybody on the call for your interest in Jackson and your participation. Take care.

Operator: Thank you. Ladies and gentlemen, this concludes today’s call. Thank you for joining. You may now disconnect your lines.