Jackson Financial (JXN) risk factors, FY2025 10-K

Jackson Financial's FY2025 10-K, filed Feb 24, 2026, lists 37 risk factors in 6 groups. Against the prior year's 43: 1 new, 7 dropped, 15 substantially reworded.

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Risk factors listed
376 groups
New this year
1vs 43 last year
Dropped
7since the prior 10-K
Substantially reworded
15of those kept
Section length
9k wordsItem 1A

What the changes say

  • Jackson Financial added regulatory fiduciary risk regarding annuity sales and updated risks on product competitiveness, policyholder behavior, hedging, and IT systems.

What changed since the prior 10-K

New

  • NewRisks Related to Legal, Tax and Regulatory Matters

    Changes to comply with new and potential laws or regulations that impose fiduciary or best interest standards in connection with the sale of our products could materially increase our costs, decrease our sales and result in a material adverse impact on our business

    Complying with new fiduciary and best interest standards from the SEC, DOL, or state insurance departments for annuity sales could increase our costs, reduce sales, and raise litigation risk.

Dropped

  • DroppedRisks Related to Product Design, Assumptions, and Models

    Our failure to design or maintain products that provide competitive benefits and features or that do not conform to distributor requirements could result in short- or long-term loss of sales, loss of distributor selling agreements, and reputational risk that would adversely impact Jackson’s growth and profitability

  • DroppedRisks Related to Information Technology, Security and Data

    Adverse outcomes from the operational risks inherent in our business could disrupt our business, and have a negative impact on our business, financial condition, results of operations and cash flows

  • DroppedRisks Related to Information Technology, Security and Data

    We are exposed to risks related to natural and man-made disasters and catastrophes, diseases, epidemics, pandemics, malicious acts, terrorist acts, civil unrest, and global climate change

  • DroppedRisks Related to Information Technology, Security and Data

    Our inability to recruit, motivate and retain key associates and experienced and productive associates could cause a material adverse effect on our business, financial condition, and results of operations

  • DroppedRisks Related to Information Technology, Security and Data

    Adverse outcomes from the operational risks of our material outsourcing partners, could disrupt our business, and have a negative impact on our business, financial condition, results of operations and cash flows

  • DroppedRisks Related to Information Technology, Security and Data

    We may not meet investors’ or regulators’ corporate responsibility expectations; and our customers, prospective investors or shareholders, or those considering such a relationship with us, may negatively evaluate our business or other practices according to a variety of corporate responsibility expectations

  • DroppedRisks Related to Information Technology, Security and Data

    The market price of our common stock could be volatile and could decline

Reworded

  • 100% rewrittenRisks Related to Product Design, Assumptions, and Models

    The design and pricing of our products can impact our competitiveness in the marketplace, negatively affect our earnings and capitalization, and increase the volatility of our financial results

    Added loss of distributor motivation to product competitiveness risks.

  • 93% rewrittenRisks Related to Conditions in Global Financial Markets and the Economy

    Those events and conditions could also have an adverse effect on the availability and cost of reinsurance protections and could affect the availability, cost and effectiveness of hedging instruments resulting in a material adverse impact on our profitability

    Expanded policyholder behavior risk to include account closures at lower rates during downturns and higher account closures in strong equity environments.

  • 53% rewrittenRisks Related to Legal, Tax and Regulatory Matters

    Our investment advisory agreements with clients are subject to termination or non-renewal on short notice

    Retained investment advisory agreement termination risk with minor textual updates.

  • 48% rewrittenRisks Related to Ratings, Liquidity and Capital Management

    As a holding company, Jackson Financial depends on the ability of its subsidiaries to pay dividends and make other distributions to meet its obligations and liquidity needs

    Clarified subsidiary distributions fund common stock repurchases.

  • 42% rewrittenRisks Related to Ratings, Liquidity and Capital Management

    Jackson may make inefficient decisions regarding the use of capital to meet business objectives, fund strategic initiatives and return capital to shareholders

    Added product diversification to capital deployment objectives.

  • 40% rewrittenRisks Related to Conditions in Global Financial Markets and the Economy

    Asset ratings downgrades, defaults, or impairments

    Added lower fee-based income from sub-accounts exposed to credit risk defaults.

    Was: General account asset ratings downgrades, defaults, or impairments

  • 39% rewrittenRisks Related to Conditions in Global Financial Markets and the Economy

    Part I | Item 1A. Risk Factors

    Expanded equity market risks to detail specific impacts from market declines, increases, and volatility on guaranteed benefits and interest credits.

  • 38% rewrittenRisks Related to Information Technology, Security, Artificial Intelligence, and Data

    Our information technology systems could fail, which could cause a material adverse effect on our business

    Updated IT system risk to specify the processing of analytical models alongside transactions.

    Was: Our information technology systems could fail, which could cause a material adverse effect on our business, financial condition, results of operations and cash flows

  • 34% rewrittenRisks Related to Conditions in Global Financial Markets and the Economy

    Our investment management business’ revenues and results of operations depend on the market value and the composition of our assets under management, which could fluctuate significantly based on various factors, including many factors outside of our control

  • 30% rewrittenRisks Related to Legal, Tax and Regulatory Matters

    Our businesses are heavily regulated and changes in regulation could reduce our profitability and limit our growth

  • 30% rewrittenRisks Related to Conditions in Global Financial Markets and the Economy

    General conditions in the global financial markets and the economy could have a material adverse effect on our business

    Was: General conditions in the global financial markets and the economy could have a material adverse effect on our business, financial condition, liquidity, results of operations and cash flows

  • 28% rewrittenRisks Related to Information Technology, Security, Artificial Intelligence, and Data

    The use of artificial intelligence may result in errors in analysis and decision-making that could cause adverse effects on our business

    Was: The use of artificial intelligence processes may result in errors in analysis and decision-making that could cause adverse effects on our business, financial condition, results of operations and cash flows

  • 25% rewrittenRisks Related to Legal, Tax and Regulatory Matters

    Changes in accounting standards could cause a material adverse effect on our business, financial condition, results of operations and cash flows

  • 24% rewrittenRisks Related to Information Technology, Security, Artificial Intelligence, and Data

    Our information technology systems, and those of our third-party vendors and service providers, are vulnerable to physical or electronic intrusions, computer viruses, ransomware or other attacks potentially exposing confidential customer or associate data or proprietary business information

  • 23% rewrittenRisks Related to Legal, Tax and Regulatory Matters

    Changes in U.S. federal income or other tax laws or the interpretation of tax laws could affect sales of our products, cash flows, and profitability

All 37 risk factors

Headings as the filing states them, in filing order.

Risks Related to Conditions in Global Financial Markets and the Economy

  1. 01General conditions in the global financial markets and the economy could have a material adverse effect on our business30% rewritten
  2. 02Those events and conditions could also have an adverse effect on the availability and cost of reinsurance protections and could affect the availability, cost and effectiveness of hedging instruments resulting in a material adverse impact on our profitability93% rewritten
  3. 03Part I | Item 1A. Risk Factors39% rewritten
  4. 04Our investment management business’ revenues and results of operations depend on the market value and the composition of our assets under management, which could fluctuate significantly based on various factors, including many factors outside of our control34% rewritten
  5. 05Disruptions or volatility in financial market conditions could limit our ability to buy or sell investments and derivative instruments or negatively impact our liquidity
  6. 06Asset ratings downgrades, defaults, or impairments40% rewritten
  7. 07Difficulties faced by other financial institutions could adversely affect us

Risks Related to Ratings, Liquidity and Capital Management

  1. 08An actual or potential downgrade in our financial strength or issuer credit ratings could result in a loss of business and cause a material adverse effect on our business
  2. 09As a holding company, Jackson Financial depends on the ability of its subsidiaries to pay dividends and make other distributions to meet its obligations and liquidity needs48% rewritten
  3. 10Failing to deliver on Jackson’s cash obligations, such as policyholder benefits and derivative margin requirements, could have a significant negative impact on its ability to continue to sell products and access derivative markets
  4. 11We are subject to liquidity risks associated with sourcing a large concentration of our funding from the Federal Home Loan Bank of Indianapolis (“FHLBI”)
  5. 12Some of our investments are relatively illiquid and could be difficult to sell, or to sell in significant amounts at acceptable prices, to generate cash to meet our needs
  6. 13Our use of financial derivative transactions to hedge risks associated with our operations exposes us to counterparty credit risk that could lead to a financial loss
  7. 14We use reinsurance to mitigate a portion of the financial, longevity and mortality risks inherent in some of our in force annuity and life insurance products. Under our reinsurance arrangements, other insurers assume a portion of the obligation to pay claims and related expenses to which we are subject
  8. 15Jackson may make inefficient decisions regarding the use of capital to meet business objectives, fund strategic initiatives and return capital to shareholders42% rewritten

Risks Related to Product Design, Assumptions, and Models

  1. 16The design and pricing of our products can impact our competitiveness in the marketplace, negatively affect our earnings and capitalization, and increase the volatility of our financial results100% rewritten
  2. 17We could face unanticipated losses if there are significant deviations from our assumptions regarding the persistency, mortality rates, and benefit utilization related to our annuity contracts
  3. 18We rely on complex models to predict behavior, identify potential risks and estimate financial performance, and these models may be ineffective due to incomplete or inaccurate assumptions or errors in data collection, analysis or interpretation that could result in materially inaccurate model output
  4. 19The subjective determination of the amount of allowances and impairments taken on our investments could cause a material adverse effect on our business

Risks Related to the Distribution of Our Products

  1. 20Our failure to describe accurately the features and options of our annuities, failure to administer those features and options consistent with their descriptions or mishandling of customer complaints could adversely impact our business
  2. 21If we do not design our products in accordance with applicable law, those products may not achieve the intended objectives and could adversely impact our business
  3. 22We could experience difficulties in distributing our products through third-party distribution partners, which are a primary source of our sales
  4. 23Competition could adversely affect our market share and financial results

Risks Related to Legal, Tax and Regulatory Matters

  1. 24Our businesses are heavily regulated and changes in regulation could reduce our profitability and limit our growth30% rewritten
  2. 25Changes in U.S. federal income or other tax laws or the interpretation of tax laws could affect sales of our products, cash flows, and profitability23% rewritten
  3. 26Our investment advisory agreements with clients are subject to termination or non-renewal on short notice53% rewritten
  4. 27Changes to comply with new and potential laws or regulations that impose fiduciary or best interest standards in connection with the sale of our products could materially increase our costs, decrease our sales and result in a material adverse impact on our businessNew
  5. 28Changes in accounting standards could cause a material adverse effect on our business, financial condition, results of operations and cash flows25% rewritten
  6. 29Legal and regulatory investigations and actions are increasingly common in our industry and could result in a material adverse effect on our business

Risks Related to Information Technology, Security, Artificial Intelligence, and Data

  1. 30Our information technology systems could fail, which could cause a material adverse effect on our business38% rewritten
  2. 31Our information technology systems, and those of our third-party vendors and service providers, are vulnerable to physical or electronic intrusions, computer viruses, ransomware or other attacks potentially exposing confidential customer or associate data or proprietary business information24% rewritten
  3. 32Jackson is exposed to the risk of incomplete, inaccurate, or misinterpreted data being utilized for reporting or decision-making purposes
  4. 33The use of artificial intelligence may result in errors in analysis and decision-making that could cause adverse effects on our business28% rewritten
  5. 34We could face direct or indirect effects of, or responses to, climate change
  6. 35We face risks arising from acquisitions or other complex strategic transactions
  7. 36Applicable insurance laws could make it difficult to effect a change of control of our Company
  8. 37Anti-takeover provisions in our certificate of incorporation and by-laws could discourage, delay, or prevent a change of control of our Company and could affect the trading price of our common stock

Other Jackson Financial 10-Ks

  • FY2024 10-K risk factors
    43 risks

    Jackson Financial's risk profile is dominated by market volatility affecting its derivative hedging and asset-management fees.

    Filed Feb 26, 2025

About this page

The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.