delivering shareholder value clark p. manning, jr. president and chief executive officer jackson...
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Delivering Shareholder Value
Clark P. Manning, Jr.President and Chief Executive Officer
Jackson National Life Insurance
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Value-based
approach
Low-cost, flexible
infrastructure
Excellent product manufacturing & administrative
capability
Relationship-driven distribution model
Strong risk management capabilities and financial discipline
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Value-based
approach
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Focus on Value
▲ Focus on value will drive your– Choice of customer segments– Product designs– Expense structure– Approach to growth
▲ Focus on value is an anchor during good times and bad
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Value-based
approach
Low-cost, flexible
infrastructure
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Low-Cost, Flexible Infrastructure
▲ Three ways to measure scale– Distribution scale– Administrative scale– Financial scale
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Low-Cost, Flexible Infrastructure
▲ Benefits of organic growth before making acquisitions– No huge expenditures for systems
integration– Prior experience in conversions– New, efficient and well-integrated systems
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Value-based
approach
Low-cost, flexible
infrastructure
Excellent product manufacturing & administrative
capability
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Excellent Product Manufacturing and Administrative Capability
▲ Broad product line helps drive sales– 2000 was best sales year ever, driven by
high variable annuity sales– 2001 was second best sales year, driven
by high fixed annuity sales– Through 30 September 2002, sales are up
in every category
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Excellent Product Manufacturing and Administrative Capability
▲ Efficient product manufacturing is a strategic advantage– Developed Perspective II from concept to
completion in only six months– 65% of September 2002 sales from
products that did not exist at beginning of this year
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Value-based
approach
Low-cost, flexible
infrastructure
Excellent product manufacturing & administrative
capability
Relationship-driven distribution model
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Relationship-Driven Distribution
▲ JNL’s high quality, value-added wholesaling model– Appeals to “high achiever” reps– Adds value through technology– Establishes trust and long-lasting profitable
relationships
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Relationship-Driven Distribution
▲ JNL’s distribution network consists of:– Independent insurance agents– Banks and financial institutions– Independent broker-dealers– Regional broker-dealers
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Relationship-Driven Distribution
▲ The quality of JNL’s distribution network is a significant strategic advantage– Wholesalers deliver consistent message of
“partnership”– Each JNL wholesaler generates a
significantly higher amount of new business than the industry average
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Value-based
approach
Low-cost, flexible
infrastructure
Excellent product manufacturing & administrative
capability
Relationship-driven distribution model
Strong risk management capabilities and financial discipline
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Strong Risk Management and Financial Discipline
▲ JNL takes a careful, yet confident approach to risk management– Unwilling to accept certain types of risk– Discipline pushes product design in
profitable direction
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Strong Risk Management and Financial Discipline
▲ With investments, JNL prefers diversifiable credit risk over non-diversifiable interest rate risk– Credit environment has been difficult over last
two years but strategy effective over entire business cycle
– Earning fundamentals continue to be strong
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Strong Risk Management and Financial Discipline▲ JNL’s strategy is based on strong
financial discipline– Returns on capital above the industry
average– Self-financed rapid growth over the last ten
years and still has returned capital to Prudential plc
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Value-based approach
Low-cost, flexible infrastructure
Excellent product manufacturing & administrative capability
Relationship-driven distribution model
Strong risk management capabilities and financial discipline
Profitable, organic
growth in targeted
channels
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Profitable, Organic Growth
▲ From 1991-2002:– Total sales grew 13% and retail sales grew
9% on an annualized basis– Admitted assets grew from $13.6b to $45b
(as of 30 June 2002)
▲ From 1 January 1992 to 1 January 2002, JNL returned $238m of capital to Prudential plc
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Profitable, Organic Growth
▲ From 1986 to present, JNL’s admitted assets grew from $2.3b to $45b, nearly a 20-fold increase
▲ All achieved with a net investment of only $697m from Prudential
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Profitable, Organic Growth
▲ Focus has been and will continue to be on organic growth
▲ In considering acquisitions to complement organic growth, we will:– Look at like businesses to lower unit costs
further – Follow strict pricing disciplines– Consider transactions that provide value
based on discounted cash flows
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Value-based approach
Low-cost, flexible infrastructure
Excellent product manufacturing & administrative capability
Relationship-driven distribution model
Strong risk management capabilities and financial discipline
Profitable, organic
growth in targeted
channels
EXECUTION
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Execution
▲ Speed to market is critical▲ Quality to market is critical▲ We do both▲ Jackson National’s success has been
founded on execution
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Summary
▲ Jackson National is built for this environment, and the next
▲ Our strategy is cycle-neutral▲ We have no expense or goodwill
overhang▲ We never lost the economic rationale
for our business
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Value-based approach
Low-cost, flexible infrastructure
Excellent product manufacturing & administrative capability
Relationship-driven distribution model
Strong risk management capabilities and financial discipline
Profitable, organic
growth in targeted
channels
![Page 28: Delivering Shareholder Value Clark P. Manning, Jr. President and Chief Executive Officer Jackson National Life Insurance](https://reader036.vdocument.in/reader036/viewer/2022062307/551bc2f2550346be588b4bcd/html5/thumbnails/28.jpg)
Wednesday Agenda▲ Greg Salsbury, Executive Vice President, Jackson
National Life Distributors“The U.S. Retirement Market”
▲ Mike Wells, Vice Chairman, Jackson National Life“Broader Distribution, Greater Market Share”
▲ Break▲ Clifford Jack, President, Jackson National Life
Distributors, Inc.“Positioned to Win with Independent Broker/Dealers”
▲ Jim Sipe, President PCA, Raymond James Inc. ▲ Brad Powell, President, Insitutional Marketing Group
“Positioned to Win with Independent Broker/Dealers”▲ Mike Wells “Wrap Up”
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