U.S. retirement services company Jackson Financial Inc. has entered into a long-term strategic partnership with global alternative asset manager TPG Inc., with TPG’s investment used to provide initial capital for Jackson’s new Michigan-based captive reinsurance company, Hickory Brooke Reinsurance Company (Hickory Re).
The partnership combines Jackson’s annuity product expertise and extensive distribution network with TPG’s scaled private credit platform. The aim is to expand Jackson’s spread-based product sales while providing greater flexibility for future insurance solutions.
“Today marks an important milestone in the next phase of Jackson’s growth and our commitment to delivering long-term value to all of our stakeholders,” said Jackson President and CEO Laura Prieskorn.
“I am proud to enter into this strategic partnership with an organization that shares our commitment to delivering world-class performance through a collaborative and customer-centric approach. The complementary strengths of Jackson and TPG will enhance our competitiveness in the marketplace and support our efforts to bring more value to consumers to meet the growing needs of Americans seeking financial security in retirement.”
TPG CEO Jon Winkelried added: “TPG has achieved significant growth in insurance capital across our platform over the past few years, driven by our ability to create differentiated access points and cross-platform strategies to meet the evolving needs of our insurance partners.
“As the insurance landscape continues to evolve, we see tremendous opportunity to leverage TPG’s comprehensive capabilities through a thoughtful, relationship-driven approach to deepen relationships and deliver long-term value to policyholders and shareholders. Jackson “
Under the partnership, Jackson and TPG have also entered into a non-exclusive investment management arrangement with an initial term of 10 years, automatically renewable for one year to year 15. TPG will provide investment-grade asset financing and direct loan investment capabilities to complement the asset management expertise of Jackson subsidiary PPM America, Inc. (PPM).
The arrangement is expected to enhance the investment capabilities of Jackson’s general account while maintaining a diversified strategy that balances risk and return to support annuity product sales in different market environments. PPM will continue to manage most of Jackson’s general accounts, with Jackson and PPM retaining oversight of the investment portfolio.
The two parties also signed a final investment agreement regarding TPG’s acquisition of Jackson common shares and the issuance of TPG common shares to Jackson. Under the terms of the agreement, TPG will acquire a $500 million stake in Jackson Financial Inc. Jackson will issue 4,715,554 shares of TPG common stock at a price of $106.03 per share, with pricing based on the unaffected 30-day volume-weighted average price as of January 4, 2026. This represents approximately 6.5% of Jackson Financial Inc.’s common stock.
In addition, TPG will issue $150 million of common stock to Jackson’s wholly-owned indirect subsidiary, equivalent to 2,279,109 shares, at a price of $65.82 per share, also priced at market using the same pricing method. The parties have agreed to certain restrictions on their ability to divest their respective equity interests over time.
Funds from TPG’s investment and $150 million in excess cash provided by Jackson Financial Inc. will be used to capitalize Hickory Re. The captive reinsurer was formed as a capital-efficient way to accelerate sales growth of Jackson’s fixed and fixed index annuity products.
Collectively, these transactions are expected to enhance Jackson’s future profitability, general account asset growth and capital generation, supporting continued growth in free cash flow and returns on capital 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 counsel to Jackson, and Milliman served as actuarial counsel to Hickory Re.
Debevoise & Plimpton LLP served as legal counsel to TPG, Oliver Wyman served as actuarial counsel, and Weil, Gotshal & Manges LLP advised TPG on certain corporate and regulatory matters.