Delivering Shareholder Value

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Delivering Shareholder Value

• Clark P. Manning, Jr.
• President and Chief Executive OfficerJackson
  National Life Insurance

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(No Transcript)
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Value-based approach
Strong risk management capabilities and financial
discipline
Low-cost, flexible infrastructure
Excellent product manufacturing
administrative capability
Relationship-driven distribution model
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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

• JNLs 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

• JNLs 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 JNLs 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
Strong risk management capabilities and financial
discipline
Low-cost, flexible infrastructure
Excellent product manufacturing
administrative capability
Relationship-driven distribution model
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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

• JNLs 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
Strong risk management capabilities and
financial discipline
Profitable, organic growth in targeted channels
Low-cost, flexible infrastructure
Excellent product manufacturing
administrative capability
Relationship-driven distribution model
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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, JNLs 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
Strong risk management capabilities and
financial discipline
Profitable, organic growth in targeted channels
EXECUTION
Low-cost, flexible infrastructure
Excellent product manufacturing
administrative capability
Relationship-driven distribution model
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Execution

• Speed to market is critical
• Quality to market is critical
• We do both
• Jackson Nationals 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
Strong risk management capabilities and
financial discipline
Profitable, organic growth in targeted channels
Low-cost, flexible infrastructure
Excellent product manufacturing
administrative capability
Relationship-driven distribution model
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Wednesday Agenda

• Greg Salsbury, Executive Vice President, Jackson
  National Life DistributorsThe U.S. Retirement
  Market
• Mike Wells, Vice Chairman, Jackson National
  LifeBroader 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
  GroupPositioned to Win with Independent
  Broker/Dealers
• Mike Wells Wrap Up

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(No Transcript)