JXN - Jackson Financial: A Puff From The Annuity Cigar Butt

2024-06-06 08:01:36 ET

Summary

• Jackson Financial has produced attractive returns for investors, with total returns almost tripling in less than three years.
• The company's financial history shows revenue and earnings volatility due to losses on derivatives and reinsurance treaties.
• Jackson primarily earns fees from annuity products, but their annuity business is experiencing negative net flows and a decline in income.
• Given this, it doesn't have a clear path for growth, but buybacks at a discount to book value may produce attractive returns over time.

Jackson Financial ( JXN ) is a classic example of a boring stock but one that can still produce attractive returns to prudent investors.

With less than three years as a separate, public company, the total returns of the stock are almost 3x, and much of that has occurred recently. It's worth reviewing what's going on here and if there's room for more return....

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