Jackson Financial Inc., a U.S. retirement services firm, has entered a long-term strategic partnership with TPG Inc., a global alternative asset manager, with TPG’s investment to be used for the initial capitalisation of Jackson’s new Michigan-based captive reinsurer, Hickory Brooke Reinsurance Company (Hickory Re).
The partnership combines Jackson’s annuity product expertise and broad distribution network with TPG’s scaled private credit platform. It is intended to expand Jackson’s spread-based product sales while providing greater flexibility for future insurance solutions.
Laura Prieskorn, President and Chief Executive Officer of Jackson, said, “Today marks a significant milestone for Jackson’s next phase of growth and our commitment to provide long-term value for all stakeholders.
“I am proud to form this strategic partnership with an organisation that shares our commitment to delivering world-class performance through a collaborative and client-centric approach. The complementary strengths of Jackson and TPG will enhance our competitiveness in the market, supporting our efforts to bring more value to consumers to meet the growing needs of Americans seeking financial security in retirement.”
Jon Winkelried, Chief Executive Officer of TPG, added, “Over the past several years, TPG has achieved meaningful growth in insurance capital across our platform, driven by our ability to create differentiated access points and cross-platform strategies that meet the evolving needs of our insurance partners.
“As the insurance landscape continues to evolve, we see tremendous opportunity to deepen relationships and drive long-term value for policyholders and shareholders through thoughtful, relationship-driven approaches that leverage the full breadth of TPG’s capabilities. Jackson brings an impressive track record as a leading provider of retirement income solutions, and as we’ve developed a strong relationship with their team, it’s clear that our goals are closely aligned. This strategic partnership is an important step in the evolution of our franchise and insurance practice, creating opportunities for us to extend the duration of our capital, while scaling our product capabilities.”
Under the partnership, Jackson and TPG have also entered into a non-exclusive investment management arrangement with an initial 10-year term, subject to automatic one-year renewals through year 15. TPG will provide Investment Grade Asset Based Finance and Direct Lending investment capabilities to complement the asset management expertise of Jackson subsidiary PPM America, Inc. (PPM).
The arrangement is expected to strengthen investment capabilities within Jackson’s general account, while maintaining a well-diversified strategy that balances risk and return to support annuity product sales across various market environments. PPM will continue to manage most of Jackson’s general account, with both Jackson and PPM retaining oversight of the investment portfolio.
The parties have also signed a definitive investment agreement for the acquisition of Jackson common stock by TPG and issuance of TPG common stock to Jackson. Under the terms of the agreement, TPG will acquire a $500 million equity stake in Jackson Financial Inc. Jackson will issue TPG 4,715,554 shares of its common stock for $106.03 per share, priced at market, based on the 30-day unaffected volume-weighted average price as of January 4, 2026. This represents an approximate 6.5% common equity stake in Jackson Financial Inc.
In addition, TPG will issue $150 million in its own common shares to a wholly owned, indirect subsidiary of Jackson, equating to 2,279,109 shares at $65.82 per share, also priced at market using the same pricing methodology. Both parties have agreed to certain limitations on their ability to divest their respective ownership stakes over time.
Capital from TPG’s investment, alongside $150 million in excess cash from Jackson Financial Inc., will be used to capitalise Hickory Re. The captive reinsurer has been established to serve as a capital-efficient way to accelerate sales growth of Jackson’s fixed and fixed index annuity products.
Collectively, the transactions are expected to enhance Jackson’s future profitability, general account asset growth and capital generation, supporting continued growth in free cash flow and capital returns to shareholders.
The transaction is subject to customary closing conditions and is expected to close in the first quarter of 2026.
Skadden, Arps, Slate, Meagher & Flom LLP served as legal advisor to Jackson, and Milliman served as actuarial advisor for the establishment of Hickory Re.
Debevoise & Plimpton LLP served as legal counsel to TPG, Oliver Wyman as actuarial advisor, and Weil, Gotshal & Manges LLP advised TPG on certain corporate and regulatory matters.
