JSX - Jackson Financial

[FTG]

Hi ValueNZ,

I understand that normalised/adjusted PE is running at just over 1.0 x

FWIW, from a TA perspective the Price Chart looks good. Especially the weekly.

From a FA perspective, I would wonder about their true NIM currently. Regional banks, especially, could be encountering some real pressures building here?

[ValueNZ]

Hi ValueNZ,

I understand that normalised/adjusted PE is running at just over 1.0 x

FWIW, from a TA perspective the Price Chart looks good. Especially the weekly.

From a FA perspective, I would wonder about their true NIM currently. Regional banks, especially, could be encountering some real pressures building here?

Been doing some more research this morning.

With JXN selling annuities they hedge out the market risk through reinsurance and derivatives to smooth the results out overtime for their shareholders. Since the value of these hedges dramatically swinging upwards and downwards, the changes in value should be ignored when analysing the business. Their most recent quarterly earnings of $1.2 billion turns into $283 million in operating earnings. Which would translate to an impressive 2.7 forward p/e ratio.

So a forward P/E of 2.7 and trading at 0.4 price to book ratio, the company at least at first glance appears very cheap. I'm not 100% sure yet why it's selling at such a steep discount, but one plausible explanation is the GAAP accounting complexity with the major hedging gains/losses so the market doesn't know how to price the stock.

Will continue researching this company and make more posts in the future.