Shares of Jackson Financial Inc. (JXN) plunged 5.2% on November 7, 2024, after the company reported mixed third-quarter results, with strong sales growth overshadowed by a hefty net loss.

Jackson Financial reported a 59% year-over-year increase in retail annuity sales for Q3 2024, reaching $5.3 billion. The growth was broad-based, with traditional variable annuity sales up 8%, registered index-linked annuity sales doubling to a record $1.6 billion, and fixed and fixed indexed annuity sales surging from $76 million to $1 billion.

The company's robust capital position enabled it to return $167 million to common shareholders in Q3 through share buybacks and dividends, bringing the year-to-date total to $483 million. Jackson Financial's statutory risk-based capital ratio at its main operating subsidiary remained strong at 550-570%.

However, the company reported a net loss of $480 million, or $6.37 per diluted share, primarily driven by a $515 million loss on reinsured business and unfavorable net hedging results. Rising interest rates in the prior year's quarter had resulted in a market risk benefits gain, while declining rates in the current quarter led to a market risk benefits loss.

The mixed results highlight the challenges Jackson Financial faces in balancing its product growth strategy with managing the impact of market volatility on its hedging programs and reinsured business. While the company's sales momentum and capital strength are positives, the sizeable losses underscore the ongoing risks inherent in its operations.