Jackson Financial and TPG Inc Long-Term Strategic Partnership Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Suneet Kamath - Jefferies LLC - Analyst : Just a question on the $500 million equity raise, I guess. I had thought that your excess capital as of the end of the third quarter was pretty high, ordering on maybe $2 billion. So it feels like maybe you could have funded this on your own. So just curious if that number is reasonable, the close to $2 billion and then why go raise external equity if you could have done it on your own.

Question: Suneet Kamath - Jefferies LLC - Analyst : Okay. That's helpful. And then I guess just a comment about free cash flow expected to exceed 2025. Is that free cash flow, is that going to stay within the captives? Because you say on the one slide that Hickory will be more of a near-term distributor of capital. Brooke Re is a little bit longer term. But if Hickory is under Brooke, does that capital essentially get trapped at Brooke from Hickory and -- or does it get up to the holding company in some other way?

Question: Thomas Gallagher - Evercore ISI Institutional Equities - Analyst : Let's see a few questions for me. I guess first one is, I guess, the FA and FIA competition is really intense right now. When I look at both alternative managers and mutuals, is there anything particular about your strategy or product design that you feel like is going to help you stand out, make that either higher margin or give you better momentum or just help you stand out in a crowded field as you now are going to be emphasizing growth in those areas more?

Question: Thomas Gallagher - Evercore ISI Institutional Equities - Analyst : Got you. And then another question writing it out of Hickory Re, I assume the main difference is less on front strain from new sales. But can you talk a little bit about the -- Don, I think you mentioned the 20% increase in free cash flow dollars in '26, which is a good increase. Maybe how much of that -- is that mainly driven by lower required capital that we were seeing being a drag at JNL that's now being pushed down to Hickory Re. Is that the main driver of that?

Question: Thomas Gallagher - Evercore ISI Institutional Equities - Analyst : It did. And just -- sorry, if I could slip one more in, just on the balance sheet review charge. The -- should I think about the $350 million charge being netted out against the net MRB asset and that you would still have approximately $700 million of hard assets down at Brooke Re or maybe just any further color you can give us on the capitalization of Brooke would be helpful.

Question: Thomas Gallagher - Evercore ISI Institutional Equities - Analyst : Okay. And can you comment on the hard assets at all at Brooke Re?

Question: Alex Scott - Barclays Capital Inc. - Analyst : I was hoping you could opine a little bit more on how much new business stream do you have right now? Like what was it in '25? And how do we think about the amount it's reduced by? And what I'm really trying to get at is you opine on operating EPS accretion. I'm really interested in when this transaction becomes accretive on a cash flow basis, like on a free cash flow per share it sounds like cash flow is going up a good amount. So I'm just trying to understand how much of that is from the transaction over what period of time could you also say it's accretive from a cash flow standpoint?

Question: Alex Scott - Barclays Capital Inc. - Analyst : Got it. Okay. And then my follow-up was just interested in if you could provide a little bit more on what could be the future opportunities? I think that was mentioned a couple of times that this is a new partnership, but there's further opportunity for collaboration. What could that entail? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies.