Retail annuity sales growth caused huge amounts of cash to flow into Jackson Financial in 2024, and the company now has to find a way to spend it.

Establishing reserves for new annuities ate up some capital at the Lansing, Michigan-based company reduced the main life insurance company subsidiary’s risk-based capital ratio, or financial health measure, to 572%, from 624% a year earlier, but the company recorded $1.7 billion in after-tax capital generation, based on state insurance regulators’ accounting rules.

“This was comfortably above our target,” Laura Prieskorn, the CEO, told securities analysts during a conference call.

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