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Craig Donald Smith, President and CEO of PPM America, a subsidiary of Jackson Financial Inc. (NYSE:JXN), recently sold 7,974 shares of the company’s common stock, totaling approximately $643,900. The shares were sold on March 11 at a price of $80.75 each, under a pre-established Rule 10b5-1 trading plan. The sale comes as Jackson Financial trades at an attractive P/E ratio of 7.2x and offers a 3.9% dividend yield, with the company maintaining a "GOOD" financial health score according to InvestingPro analysis.
The Form 4 filing also detailed several other transactions. On March 10, Smith had shares withheld to cover tax obligations related to the vesting of restricted and performance share units, with a total value of approximately $1,822,104. Additionally, he received 11,338 restricted share units on the same day, which will vest in three equal annual installments starting next year.
After these transactions, Smith holds 136,740.29 shares of Jackson Financial Inc.
In other recent news, Jackson Financial has been under scrutiny following Evercore ISI’s decision to maintain an Underperform rating on the company. Evercore ISI has set a price target of $98.00 for Jackson Financial, expressing concerns about the company’s subsidiary, Brooke Re, and its complex risk profile. A significant development involves a $419 million actuarial charge at Brooke Re, attributed to updated assumptions about customer behavior, particularly regarding guaranteed minimum withdrawal benefit utilization rates. This charge was unexpected, given the current high lapse rates of 13%, which surpass long-term expectations of 8-9%.
The analyst from Evercore ISI highlighted that while Brooke Re appears well-capitalized, the majority of Jackson Financial’s tail risk is concentrated in this subsidiary. There are concerns about Brooke Re’s minimum required buffer net assets if lapse rates do not decline. Additionally, potential changes by the National Association of Insurance Commissioners in 2026 could impact variable annuity statutory accounting, raising further questions about Brooke Re’s risk management practices. Despite these challenges, modified GAAP accounting and hedging have contributed to more stable quarterly results for Jackson Financial. Evercore ISI suggests that increased transparency regarding Brooke Re’s risk management could enhance investor confidence and the valuation of Jackson Financial’s free cash flow.
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