We have received unconfirmed reports that Jackson National Life the American appendage of Prudential PLC (the UK company, not the NJ company known as the Rock) will exit the United Stated Life Insurance market. Word on the street is they will stop accepting applications for new business come August 1st of this year. No official announcement has been made as far as we are aware, but we've now had numerous conversations with various agents about conversations with Jackson National Life Distributors (the marketing arm of Jackson National Life) in Denver, CO that new business will cease on August 1st.
At this time this is all the information that is being distributed. We will follow up with this report as more information becomes available.
We should be clear in pointing out that, as far as we know, this exit will only effect individual life insurance business underwritten and issued by Jackson. Jackson National Life will continue to operate in the United States issuing their annuity contracts.
Jackson has released official announcement that they will discontinue their life products and will no longer accept applications for new business August 1st 2012. They will return all business that does not have an offer a month following.
This move of course does not effect in-force business. It's probably worth noting that any suggestions to lapse a JNL policy simply due to their closing of their life business should be viewed with a critical eye. Also, it appears that conversion options will continue to be available after August 1st.
If more information develops on this decision from Jackson National Life, we will update this post.