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Broader Distribution, Greater Market Share

Broader Distribution, Greater Market Share. Mike Wells Vice Chairman Jackson National Life. JNL’s Business Model –. The Balance of Size, Desired Market Position, and Speed. Large enough to have scale; small enough to have speed. JNL Evolution to a Financial Services Company.

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Broader Distribution, Greater Market Share

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  1. Broader Distribution, Greater Market Share Mike Wells Vice ChairmanJackson National Life

  2. JNL’s Business Model – The Balance of Size, Desired Market Position, and Speed Large enough to have scale; small enough to have speed

  3. JNL Evolution to a Financial Services Company From 1-Product/1-Channel…to Multi-Product/Multi-Channel Acquired Invest & ICA Creationof NPC JacksonFederal Bank Channel Development  RIA Distribution & Products Acquired SII Investments Regional B/D Distribution Index Fixed Option (IFO) JNL ofNew York Product Initiatives  Index Annuity Short-TermVariable Annuity UIT StyleVariable Annuity Certificateof Deposit Bonus Variable Annuity No-SurrenderVariable Annuity Enhancements to Annuity Lines 1997 1998 1999 2000 2001 2002

  4. The Impact of Diversifying Products and Channels The Right Products for Every Kind of Economy Product Sales JNL Assets 6,000 60,000 Fixed Annuity Index Annuity Variable Annuity JNL Assets 5,000 50,000 4,000 40,000 ($ millions) 3,000 30,000 2,000 20,000 1,000 10,000 0 0 1997 1998 1999 2000 2001 YTD (9/30/02)

  5. JNL’s Focus is on the Most Profitable Channels Industry Sales by Distribution Channel Year-to-Date 6/02 Variable Annuity Industry NY Wirehouse (12%) Bank/Credit Union (11%) DirectResponse (2%) IndependentBroker/Dealers (26%) Insurance Agents (36%) Regional Broker/Dealers (13%) 54,997.7 • Insurance Agents 36% • Independent Broker/Dealers 26% • Regional Broker/Dealers 13% • NY Wirehouse 12% • Bank/Credit Union 11% • Direct Response 2%

  6. Where JNL Chooses NOT to Compete Industry Sales by Distribution Channel Year-to-Date 6/02 Variable Annuity Industry NY Wirehouse (12%) DirectResponse (2%) Insurance Agents (36%) 54,997.7 27,560.0 (50.1%)

  7. Where JNL Chooses to Compete Industry Sales by Distribution Channel Year-to-Date 6/02 Variable Annuity Industry Bank/Credit Union (11%) IndependentBroker/Dealers (26%) Regional Broker/Dealers (13%) 54,997.7 27,437.7(49.9%)

  8. Industry Trends

  9. After Years of VA Growth, Fixed Annuity Sales Are Back Industry Trends Industry Annuity Sales ($billions) $250 100% Fixed VA JNL's FA to Total Industry FA to Total $200 80% $150 60% $137 $113 $88 $100 40% $123 $100 $55 $50 20% $72 $53 $53 $42 $38 $32 $0 0% 1997 1998 1999 2000 2001 YTD 6/02 Source: LIMRA Annuity Report (Fixed Annuities) The VARDS Report (Variable Annuities)

  10. Fixed Annuity Industry Trends • Move from annual reset-able to multi-year guarantee products • Mispriced Fixed option in variable annuity contracts • Large players continue to lead market on rates and commission • Channel-specific issues

  11. JNL’s Fixed Annuity Strategy • Year-to-date sales of $2.9 billion* • Revised product line • Customized by channel • Leveraging business reputation *Through 9/30/02

  12. JNL’s Life Strategy • Revised product line • Entering new channels • Leveraging existing life producers • Re-dedicated marketing efforts

  13. Variable Annuity Industry Trends • Guaranteed principal options • Repricing of Guaranteed Minimum Income Benefit • More sub-accounts • Shorter contingent deferred sales charges • Unbundling

  14. JNL’s Variable Annuity Strategy • Leveraging administrative technology • Revised product line • Solution-based sales • Year-to-date sales of $1.3 billion* *Through 9/30/02

  15. JNL’s Index Annuities Strategy • Enhanced product line • Advantageous crediting methodology • Producer certification • Year-to-date sales of $300 million* *Through 9/30/02

  16. This Is Where We Are Going…

  17. Where We Are Going • Broader distribution • Increased market share in current channels • Move from products to platforms • The Registered Investment Advisor business

  18. Registered Investment Advisor • $400 billion market • The likely competitors cannot cover this space • JNL Stakeholders win: • Client • Rep • Shareholder • Asset management business, without the overhead, acquisition costs, personalities, etc. • Institutional quality for everyone

  19. Evolution of Consumer Needs… Where We are Going… Retirement Cost &Simplicity Guarantees & Complexity Institutional-qualityadvice withtheir first dollar Products that adjust to their changing needs and asset levels Advice that is truly customized to their needs Income & mortality products that are flexible and address their ever-changing needs

  20. JNL: Positioned to Win • Large enough for scale; small enough for speed • Multi-product/multi-channel • Built to succeed in any economy • Evolution towards platforms, not products • Meeting consumer needs at a variety of inflection points

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