International Financial Reporting Standards (IFRS) is a principles-based set of international accounting standards for reporting financial information. IFRS is issued by the International Accounting Standards Board in an effort to increase global comparability of financial statements and results. IFRS is used by Jackson's parent to report the Group's financial results. Jackson's IFRS results are consolidated within its parent's IFRS financial statements, which are audited. Jackson does not produce standalone audited IFRS financial statements.
|FY 2015||HY 2015||HY 2016|
|Total Sales and Deposits||$26.4 billion||$13.1 billion||$11.2 billion|
|IFRS Pretax Operating Income2||$2.6 billion||$1.3 billion||$1.3 billion|
|IFRS Total Assets||$219.8 billion||$218.8 billion||$230.4 billion|
|IFRS Policy Reserves3||$207.1 billion||$205.5 billion||$216.5 billion|
|IFRS Stockholder's Equity||$6.4 billion||$6.5 billion||$7.0 billion|
Jackson Sales and Deposits by Product Line
1 Financial results from Jackson National Life Insurance Company and its subsidiaries have been included in Jackson's financial results. Jackson results exclude Curian's separately managed account business as new deposits have been discontinued effective July 31, 2015. Fixed index annuities, life insurance and institutional products are not sold in New York.
2 IFRS pretax operating income is based on longer-term investment returns. It excludes short-term fluctuations in investment returns, hedge results, and change in value of derivatives. A reconciliation to net income based on generally accepted accounting principles (US GAAP) for HY 2016 is as follows:
|Reconciliation of IFRS pretax operating income to GAAP net income
|IFRS basis pretax income from operations||$ 1,272.1|
|Net hedge results and change in value of derivatives5||(1,944.9)|
|Net realized investment losses, net of non-controlling interest5||(126.4)|
|Normalization of longer-term investment returns5||(43.3)|
|Income tax benefit||396.9|
|IFRS net loss||(445.6)|
|IFRS to US GAAP adjustments, net of tax||(20.2)|
|US GAAP basis net loss attributable to Jackson||$ (465.8)|
Jackson's net income was impacted by the increase in accounting reserves, primarily related to movements in interest rates, which were not fully offset by hedging gains. Accounting reserves are reported pursuant to the US GAAP measurement basis applied for IFRS, which may differ significantly from the fair value movement of the hedge instruments. Jackson continues to manage its hedge program on an economic basis and is willing to accept the accounting volatility that results.
3 Includes separate account liabilities as well as $4.4 billion, $3.7 billion and $5.8 billion of trust instruments supported by funding agreements and Federal Home Loan Bank advances in FY 2015, HY 2015 and HY 2016, respectively.
4 Sales of medium-term notes, funding agreements and guaranteed investment contracts to investment banks, institutional investors, pension plan providers and the Federal Home Loan Bank.
5 Net of deferred policy acquisition costs amortization.
For more information on our financial performance, contact Jackson Corporate Communications at email@example.com.