Jackson National's VA Sales Top $1 Billion in First Quarter

    Business Editors

    LANSING, Mich.--(BUSINESS WIRE)--April 20, 2005--Jackson National Life Insurance Company(R) (JNL(R)) recorded more than $1 billion in variable annuity sales during the first quarter of 2005, a 19-percent increase over first quarter 2004. Higher sales of variable annuities, fixed index annuities and institutional products helped JNL generate nearly $2.4 billion in total sales during the quarter, nearly 9-percent higher than the prior year.
    "Once again, Jackson National has reaped the benefits of a diversified product lineup," said Clark Manning, JNL's president and CEO. "With low interest rates limiting fixed annuity sales, significant increases in variable annuity and institutional product sales allowed JNL to achieve impressive growth in total sales during the first quarter."
    Jackson National Life(R), an indirect wholly owned subsidiary of the United Kingdom's Prudential plc (NYSE:PUK), reported retail sales in its core life and annuity product lines of nearly $1.6 billion in the first quarter of 2005, in line with retail sales during the same period last year. Sales of JNL's fixed index annuities surpassed $240 million in the quarter, an increase of 85 percent over first quarter 2004 sales. JNL's traditional fixed annuity sales in the first quarter totaled $311 million, a decline of 49 percent from the prior year period.
    For the first time, JNL's VA sales topped $1 billion during a quarter. Variable annuity sales increased throughout the quarter, peaking at just over $400 million in March (a monthly record). Jackson National's unbundled variable annuity Perspective II(R)(1), the industry's top-selling VA contract by net flows in 2004(2), continues to attract advisers and their clients. The contract's optional guaranteed minimum withdrawal benefit, LifeGuard, has generated significant interest from customers seeking a guaranteed minimum lifetime income without having to annuitize the contract. In the first quarter of 2005, JNL introduced two new VA contracts based on the design of Perspective II - Perspective Advisors II(SM)(1) and Perspective L Series(SM)(1), an L-share variable annuity.
    "In addition to the strength of our product line, our success this quarter can be attributed to an expansion of our value-added wholesaling model," said Clifford Jack, JNL's executive vice president and chief distribution officer. "We've been increasing our efforts to deepen relationships with key distributors and broaden the scope of our distribution by reaching out to more advisers through seminars and presentations on advanced marketing strategies."
    JNL's continuing efforts to develop its life business through the introduction of new products and the creation of a dedicated distribution team resulted in total first-year premium of $12.5 million, more than double the level of sales in the first quarter of 2004. In March 2004, JNL entered the variable universal life market with the launch of Perspective Investor(SM). In January 2005, the company introduced its second VUL product, Ultimate Investor(SM). To further facilitate the growth of its life business and achieve a greater balance of fee, spread and underwriting income, JNL announced its intention to purchase Life insurance Company of Georgia for approximately $250 million in November 2004. This acquisition will double the number of JNL's in-force life policies and annuity contracts, add scale to its operating platform and expand its distribution capability.
    During the first quarter of 2005, JNL capitalized on several attractive issuance opportunities to achieve nearly $775 million in institutional product sales, a 36-percent increase over the prior year period. JNL's subsidiary Curian Capital, a registered investment adviser, also had a successful quarter gathering $221 million in deposits, up 24 percent over first quarter 2004. Upon completion of its second full-year of operation, in March 2005, Curian's total assets under management surpassed $1.2 billion.
    "Performance in the first quarter was in line with our expectations for the year," said Manning. "Jackson National is well-positioned to grow sales at about twice the market rate this year, as conditions favor companies with innovative products, a relationship-based distribution model and award-winning customer service."

    (1) Perspective II Fixed and Variable Annuity, Perspective
    Advisors II Fixed and Variable Annuity and Perspective L
    Series Fixed and Variable Annuity are not FDIC/NCUA insured,
    may lose value, are not Bank/CU guaranteed, are not deposits
    and are not insured by any federal agency.

    (2) Source: The Variable Annuity Research & Data Service
    (VARDS(R)), a unit of Morningstar, Inc. Rankings as of
    12/31/04. Calculated net flow estimates are based on the
    growth in quarterly assets under management net of monthly
    investment returns.

    Before investing in variable products, investors should carefully consider the investment objectives, risks, charges and expenses of the variable product and its underlying investment options. The current contract prospectus and underlying fund prospectuses, which are contained in the same document, provide this and other important information. Please contact your representative or the Company to obtain the prospectuses. Please read the prospectuses carefully before investing or sending money.

    About JNL

    With more than $61 billion in assets (GAAP)(a), Jackson National(R) is an industry leader in the areas of fixed, fixed index and variable annuities. The company markets its products in 49 states and the District of Columbia through independent and regional broker-dealers, financial institutions and independent insurance agents. JNL's subsidiary, Jackson National Life Insurance Company of New York(SM), similarly markets products in the state of New York. Through its affiliates and subsidiaries, JNL also provides asset management and retail brokerage services. For more information, visit www.jnl.com.

    (a) As of 12/31/04. JNL also has more than $53 billion (GAAP) in
    policy liabilities set aside primarily to pay future
    policyowner benefits.

    Perspective Investor VUL (VUL1802) and Ultimate Investor VUL (VUL1803), are issued by Jackson National Life Insurance Company(R) (Home Office: Lansing, Michigan) and distributed by Jackson National Life Distributors, Inc. Member NASD. May not be available in all states and state variations may apply. This product has restrictions, limitations and terms for continued coverage. Surrender charges based on gender, underwriting classification, age, duration and the amount of insurance purchased may apply if Perspective Investor VUL is surrendered in the first nine years.
    Perspective II Fixed and Variable Annuity (VA220 and VA250), Perspective Advisors II Fixed and Variable Annuity (VA410 and VA410G), and Perspective L Series Fixed and Variable Annuity (VA210 and VA210G) (product and/or features may not be available in all states and state variations may apply) are issued by Jackson National Life Insurance Company (Home Office: Lansing, MI) and distributed by Jackson National Life Distributors, Inc., member NASD. These products have restrictions and limitations. Please contact the company for more information.
    Variable annuities involve investment risks and may lose value. The long-term advantage of the benefit options will vary with the performance of the variable investment options you select and the length of time you own your annuity. Under certain market conditions, the cost of the options may exceed the actual benefit. All guarantees are backed by the claims-paying ability of Jackson National Life Insurance Company and do not apply to the principal amount or investment performance of the separate account or its underlying investments. The value of the variable annuity fluctuates with that of the underlying portfolios. Please remember that a JNL variable annuity is intended to be a long-term, tax-deferred investment vehicle for retirement. An annuity's earnings are taxable as ordinary income when withdrawn and, if taken before age 59 1/2, may be subject to a 10% federal tax penalty.
    Jackson National Life Insurance Company, headquartered in Lansing, Michigan, is an indirect subsidiary of Prudential plc (NYSE:PUK), a company incorporated and with its principal place of business in the United Kingdom. Prudential plc and its affiliated companies constitute one of the world's leading financial service groups. It provides insurance and financial services directly and through its subsidiaries and affiliates throughout the world. It has been in existence for over 150 years and had more than $350 billion in assets under management, as of 12/31/04. Prudential plc is not affiliated in any manner with Prudential Financial, Inc., a company whose principal place of business is in the United States of America.
    The following cautionary statement is included to make applicable and take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 for any forward-looking statements made by, or on behalf of, the Company. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements which are other than statements of historical facts. However, as with any projection or forecast, forward-looking statements are inherently susceptible to a number of risks and uncertainties and actual results and events could differ materially from those currently being anticipated as reflected in such forward-looking statements. There can be no assurance that management's expectations, beliefs or projections will result or be achieved or accomplished.

--30--SLB/cl*

CONTACT: Jackson National Life Insurance Company Tim Padot, 800-565-9044, ext. 2425 Fax: 517-367-4710 tim.padot@jnli.com

KEYWORD: MICHIGAN INDUSTRY KEYWORD: INSURANCE BANKING SOURCE: Jackson National Life Insurance Company

Copyright Business Wire 2005