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Broader Distribution, Greater Market Share Mike Wells Vice Chairman Jackson National Life.

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Presentation on theme: "Broader Distribution, Greater Market Share Mike Wells Vice Chairman Jackson National Life."— Presentation transcript:

1 Broader Distribution, Greater Market Share Mike Wells Vice Chairman Jackson National Life

2 Large enough to have scale; small enough to have speed JNL’s Business Model – The Balance of Size, Desired Market Position, and Speed

3 From 1-Product/1-Channel…to Multi-Product/Multi-Channel Index Annuity No-Surrender Variable Annuity JNL of New York Creation of NPC UIT Style Variable Annuity Acquired SII Investments Acquired Invest & ICA Bonus Variable Annuity Enhancements to Annuity Lines Short-Term Variable Annuity RIA Distribution & Products Certificate of Deposit Regional B/D Distribution Jackson Federal Bank Channel Development  Product Initiatives  Index Fixed Option (IFO) JNL Evolution to a Financial Services Company

4 The Right Products for Every Kind of Economy 0 1,000 2,000 3,000 4,000 5,000 6, ,000 20,000 30,000 40,000 50,000 60,000 Fixed AnnuityIndex AnnuityVariable AnnuityJNL Assets ($ millions) Product SalesJNL Assets The Impact of Diversifying Products and Channels YTD (9/30/02)

5 JNL’s Focus is on the Most Profitable Channels s Insurance Agents 36% s Independent Broker/Dealers 26% s Regional Broker/Dealers 13% s NY Wirehouse 12% s Bank/Credit Union 11% s Direct Response 2% Variable Annuity Industry Insurance Agents (36%) Bank/Credit Union (11%)NY Wirehouse (12%) Direct Response (2%) Regional Broker/Dealers (13%) Independent Broker/Dealers (26%) 54,997.7 Industry Sales by Distribution Channel Year-to-Date 6/02

6 27,560.0 (50.1%) Where JNL Chooses NOT to Compete NY Wirehouse (12%) Direct Response (2%) Variable Annuity Industry 54,997.7 Insurance Agents (36%) Industry Sales by Distribution Channel Year-to-Date 6/02

7 27,437.7 (49.9%) Where JNL Chooses to Compete Bank/Credit Union (11%) Variable Annuity Industry Industry Sales by Distribution Channel Year-to-Date 6/02 54,997.7 Regional Broker/Dealers (13%) Independent Broker/Dealers (26%)

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9 Industry Trends

10 $53 $72 $53 $42 $38 $32 $88 $100 $123 $137 $113 $55 $0 $50 $100 $150 $200 $ YTD 6/02 0% 20% 40% 60% 80% 100% FixedVAJNL's FA to TotalIndustry FA to Total Industry Annuity Sales ($billions) Source: LIMRA Annuity Report (Fixed Annuities) The VARDS Report (Variable Annuities) After Years of VA Growth, Fixed Annuity Sales Are Back

11 Fixed Annuity ▲ Move from annual reset-able to multi-year guarantee products ▲ Mispriced Fixed option in variable annuity contracts ▲ Large players continue to lead market on rates and commission ▲ Channel-specific issues Industry Trends

12 JNL’s Fixed Annuity Strategy ▲ Year-to-date sales of $2.9 billion* ▲ Revised product line ▲ Customized by channel ▲ Leveraging business reputation *Through 9/30/02

13 JNL’s Life Strategy ▲ Revised product line ▲ Entering new channels ▲ Leveraging existing life producers ▲ Re-dedicated marketing efforts

14 Variable Annuity ▲ Guaranteed principal options ▲ Repricing of Guaranteed Minimum Income Benefit ▲ More sub-accounts ▲ Shorter contingent deferred sales charges ▲ Unbundling Industry Trends

15 JNL’s Variable Annuity Strategy ▲ Leveraging administrative technology ▲ Revised product line ▲ Solution-based sales ▲ Year-to-date sales of $1.3 billion* *Through 9/30/02

16 JNL’s Index Annuities Strategy ▲ Enhanced product line ▲ Advantageous crediting methodology ▲ Producer certification ▲ Year-to-date sales of $300 million* *Through 9/30/02

17 This Is Where We Are Going…

18 Where We Are Going ▲ Broader distribution ▲ Increased market share in current channels ▲ Move from products to platforms ▲ The Registered Investment Advisor business

19 Registered Investment Advisor ▲ $400 billion market ▲ The likely competitors cannot cover this space ▲ JNL Stakeholders win: – Client – Rep – Shareholder ▲ Asset management business, without the overhead, acquisition costs, personalities, etc. ▲ Institutional quality for everyone

20 Evolution of Consumer Needs… Retirement Cost & Simplicity Guarantees & Complexity Where We are Going… Institutional- quality advice with their first dollar Income & mortality products that are flexible and address their ever-changing needs Income & mortality products that are flexible and address their ever-changing needs Advice that is truly customized to their needs Advice that is truly customized to their needs Products that adjust to their changing needs and asset levels Products that adjust to their changing needs and asset levels

21 JNL: Positioned to Win ▲ Large enough for scale; small enough for speed ▲ Multi-product/multi-channel ▲ Built to succeed in any economy ▲ Evolution towards platforms, not products ▲ Meeting consumer needs at a variety of inflection points

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