Jackson Reports First Half 2019 Financial Results1 - Seite 2

IFRS pre-tax operating income is based on longer-term investment returns. It excludes short-term fluctuations in investment returns, hedge results and change in value of derivatives. A reconciliation to both IFRS net income as well as net income based on US generally accepted accounting principles (US GAAP) is as follows (amounts in millions):

$

 

1,557.0

 

IFRS basis pre-tax income from operations

 

(1,969.3

)

Net hedge results and change in value of derivatives, net of DAC amortization

 

22.3

 

Net realized investment gains, net of DAC amortization

 

(31.1

)

Normalization of longer-term investment returns, net of DAC amortization

 

146.3

 

Income tax benefit

 

(274.8

)

IFRS net loss

 

(6.4

)

IFRS to US GAAP adjustments, net of tax

$

 

(281.2

)

US GAAP basis net loss attributable to Jackson

Jackson's net loss was impacted by hedging losses incurred due to movements in interest rates and equity markets, which were not fully offset by the release of accounting reserves. IFRS accounting for variable annuity liabilities is not necessarily consistent with the economic value of these liabilities. Jackson continues to manage its hedge program on an economic basis and is willing to accept the accounting volatility that results.