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  1. Financial Overview Andy Hopping Executive Vice President,Chief Financial Officer and Treasurer

  2. Key Advantages • Low cost • Flat organization structure • Fast decision making • Highly disciplined culture • Excellent distribution • ~41,000 independent deal direct representatives • 6th largest (based on revenue) independent broker-dealer (National Planning Holdings Inc.) • Leading participant in the bank channel (Institutional Marketing Group) • High customer value reputation • Low costs benefit everyone • Customers and representatives know we provide long-term value • Full product line • Products that sell well in any economic climate • Strong position in our chosen product lines • Platform built for sustainable growth • Life sales support a more scalable platform • Allows infrastructure cost to be spread over a larger base of policies JNL: the low-cost provider with full product line and distribution excellence

  3. Total Generally Accepted Accounting Principles Assets $49,919 $50,000 $47,242 $4,756 $43,953 $5,126 $40,521 $5,586 $40,000 $4,522 $36,214 ($ millions) $33,096 $1,952 $1,122 $29,148 $45,163 $42,116 $370 $30,000 $38,367 $35,999 $34,262 $31,974 $28,778 $20,000 1996 1997 1998 1999 2000 2001 H1, 2002 General Account * Separate Account * Excludes FAS-115, FAS-133, reverse repurchase obligations, and securities lending deposits. Total GAAP assets have shown strong and steady growth

  4. GAAP Aftertax Operating Earnings and Return on Average Capital (a) $2,000 20% 16.3% 14.8% $1,500 15% 13.2% ( in $ millions) $1,000 10% 7.6% 6.7% 7.6% 7.2% 7.1% $500 5% 5.0% 4.1% $442 $430 $414 $266 $238 $0 0% 1998 1999 2000 2001 TTM H1, 2002 JNL aftertax operating income* Net Operating ROAE - Actual Industry aftertax operating ROAC** Notes: (a) Total capital is at book value and excludes unrealized gains or losses in equity. In addition, JNL excludes FAS-133. * Excludes net realized g/(l) and associated DAC amortization, minority interest g/(l), and change in accounting principle. ** Industry source: SNL Financial. JNL’s return on capital exceeds the industry average by 1.7%

  5. Profit Signatures of Achieved Profit, Statutory and GAAP Bases Profit Signature of a Fixed Annuity Policy Profits $0 1 2 3 4 5 6 7 8 9 10 Years AP SAP GAAP Under GAAP, expenses related to sale of product are amortized in proportion to profits over life of product

  6. Year 1 2 3 4 5 6 7 8 9 10 Investment income $ 74.6 $ 77.7 $ 79.3 $ 80.3 $ 79.8 $ 76.8 $ 65.9 $ 54.4 $ 48.0 $ 43.6 Interest credited (59.3) (60.4) (61.0) (61.1) (60.1) (57.3) (48.7) (40.2) (35.6) (32.4) Spread income 15.3 17.4 18.4 19.2 19.7 19.5 17.2 14.2 12.5 11.3 Surrender charge income 1.2 1.0 1.3 1.1 1.3 0.9 - - - - Commissions (60.0) (0.0) (0.0) (0.1) (0.2) (0.3) (0.2) (0.2) (0.2) (0.2) General expenses (16.3) (1.7) (1.6) (1.6) (1.5) (1.4) (1.2) (1.0) (0.8) (0.8) DAC 66.9 (5.7) (6.2) (6.5) (6.8) (6.5) (5.0) (4.0) (3.4) (3.1) Pretax income 7.1 11.1 11.7 12.1 12.4 12.1 10.8 9.1 8.0 7.2 Income tax (2.5) (3.9) (4.1) (4.2) (4.3) (4.2) (3.8) (3.2) (2.8) (2.5) Net income $ 4.6 $ 7.2 $ 7.6 $ 7.9 $ 8.1 $ 7.9 $ 7.0 $ 5.9 $ 5.2 $ 4.7 EOY equity $ 69.5 $ 73.1 $ 76.3 $ 78.9 $ 79.3 $ 77.8 $ 67.1 $ 56.6 $ 49.6 $ 43.4 Return on EOY equity 6.6% 10.1% 10.0% 10.0% 10.2% 10.1% 10.4% 10.4% 10.5% 10.8% Return on EOY invested assets 0.45% 0.69% 0.71% 0.73% 0.77% 0.79% 0.88% 0.87% 0.85% 0.84% GAAP Profits - Hypothetical $1,000 Fixed Annuity Policy Profit emerges smoothly under the GAAP basis

  7. Statutory Year 1 2 3 4 5 6 7 8 9 10 Premium income $ 1,000.0 $ - $ - $ - $ - $ - $ - $ - $ - $ - Investment income 74.6 77.7 79.3 80.3 79.8 76.8 65.9 54.4 48.0 43.6 Policyholder benefits & reserves (996.2) (68.6) (70.1) (70.8) (70.2) (67.4) (58.2) (40.3) (35.7) (32.5) Commissions (60.0) (0.0) (0.0) (0.1) (0.2) (0.3) (0.2) (0.2) (0.2) (0.2) General expenses (16.3) (1.7) (1.6) (1.6) (1.5) (1.4) (1.2) (1.0) (0.8) (0.8) Pretax income 2.1 7.5 7.5 7.8 7.9 7.6 6.3 12.9 11.3 10.2 Income tax (4.7) (2.2) (2.2) (2.3) (2.3) (2.3) (1.8) (4.1) (3.6) (3.1) Change in required surplus (62.4) (1.6) (0.9) (0.3) 2.0 3.9 13.2 7.4 4.4 3.8 Distributable income $ (64.9) $ 3.6 $ 4.4 $ 5.2 $ 7.6 $ 9.3 $ 17.6 $ 16.3 $ 12.2 $ 10.8 Internal rate of return* 11.0% Achieved Profits Year 1 2 3 4 5 6 7 8 9 10 NPV of stat. distributable income $ 18.6 Aftertax value of inforce 83.6 86.2 88.2 89.7 88.8 86.2 75.0 64.3 57.0 Times the discount rate 7.5% 7.5% 7.5% 7.5% 7.5% 7.5% 7.5% 7.5% 7.5% Aftertax new business profits $ 18.6 $ 6.3 $ 6.5 $ 6.6 $ 6.7 $ 6.7 $ 6.5 $ 5.6 $ 4.8 $ 4.3 SAP and AP Profits - Hypothetical $1,000 Fixed Annuity Policy * Over the life of the policy Distributable income is negative in year one under statutory accounting

  8. Achieved Profits Assumptions • Investment spread on new business • 140 grading to 175 bps • Long-term market returns • 8% gross of M&E fees • Mortality and lapses • Consistent with current pricing and current experience • Expenses • Representative of long-term unit costs • Discount rate and expense inflation • Tied to US Treasury rate with equity premium Achieved profits assumptions are generally consistent with GAAP assumptions

  9. Emergence of Spread Income • Spread income represents: • Investment income earned on policyholder deposits • Minus interest credited to policyholder accounts • Spread income relates primarily to: • Fixed annuity policies • Stable value business Spread income recognition varies by asset class and accounting methodology

  10. Fixed Annuity Interest Spread Analysis (Basis Points) 250 200 150 100 50 0 Jul-01 Jul-99 Jul-00 Nov-99 Jan-01 Nov-01 Jan-02 Jan-99 Jan-00 Nov-00 Mar-99 Mar-02 Mar-00 Mar-01 Sep-00 Sep-99 Sep-01 May-99 May-00 May-01 May-02 Target Spread KPI Spread (Prospective) ’01-’02 spread depressed by corporate bond defaults and performance of LP private equity portfolio

  11. Foregone Pretax Investment Income from Non-Accrual Investments ($ millions) $35 $30 $31.2 $30.6 $25 $20 $18.6 $15 $10 $5 $3.7 $3.1 $0 1998 1999 2000 2001 H1, 2002 Foregone non-accrual income ’01-’02 spread earnings depressed by corporate bond defaults

  12. Fee Income • Calculated based on: • Daily closing market value of the separate accounts • GAAP/STAT: • Recognizes fee income in period it is assessed • AP: • Profits include present value of all future fees Fee income: mortality and expense charges plus our share of asset management fees

  13. Fee Income S&P month-end value 1,600 $12,000 1,400 $10,000 1,200 1,000 $8,000 800 $6,000 600 $4,000 400 $2,000 200 0 $0 Jul-99 Jul-00 Jul-01 Jan-99 Jan-00 Jan-01 Jan-02 Apr-99 Apr-00 Apr-01 Apr-02 Oct-99 Oct-00 Oct-01 Asset management fees Variable annuity fees S&P 500 month-end value Fee income correlates with S&P 500 performance

  14. GAAP Pretax Realized Gains/(Losses), Net of Minority Interest, Before DAC Amortization* $200 $70 $44 $0 ($71) ($200) ($235) ($400) ($568) ($600) 1998 1999 2000 2001 H1, 2002 Net realized gains/(losses) * GAAP gains/(losses) include sales of fixed maturities, sales of equity securities, sales of other invested assets and impairment losses. ’01-’02 results broadly in line with U.S. peers

  15. GAAP Treatment of Investment Writedowns • Written down to market or net realizable value when impairment is “other than temporary” • Recorded as net realized loss, with associated tax and DAC benefit • Deferred tax benefit recognized when writedown occurs No hard and fast rules on what constitutes “other than temporary” impairment

  16. SAP Treatment ofInvestment Writedowns • Writedowns generally follow GAAP unless rated NAIC 6 • Credit related losses flow through net income with surplus adjusted by change in AVR • No tax benefit until investment sold • Interest related: charged to IMR and amortized to net income over remaining life of bond Statutory rules require NAIC 6 to be carried at current Securities Valuation Office published market prices

  17. AP Treatment of Investment Writedowns • Current year realized gains/losses added to prior 4 years gains/losses, and 1/5 brought through as current year operating profit • Variance from actual current year treated as adjustment in deriving total long-term profits • Represents estimate of long-term rate of capital return under U.K. GAAP Approximate method but transparent to investors

  18. Tax Treatment of Investment Writedowns • No statutory tax benefit until investment sold • Losses can be utilized only to extent of gains, subject to: • 3-year carryback • 5-year carryforward Income taxes drive much of the economics in managing investment gains/losses

  19. Guaranteed Minimum Death Benefit (GMDB) Reserves Statutory Statutory reserves assume: • No lapses • Very conservative mortality table (from 50% to 70% higher than standard) • A further ~11% drop in the market (net of M&E) • While ignoring future fee income GAAP • JNL periodically evaluates expected long-term cost of GMDB benefit under various market and mortality scenarios • JNL sets aside the portion of long-term cost accumulated from policy inception to valuation date (funded from VA fees) • Paid claims charged against this reserve • Continued declines in equity markets this year will result in higher provisions for GMDB reserves GAAP literature for GMDB is still being developed

  20. GMDB Costs • Year-to-date 6/30/02 death benefit cash spend • $10.3 million • Statutory reserve: ~$270m at 6/30/02 (more than 13 times the 2002 run rate) • After-tax capital impact: ~$176 million • Bulk of JNL’s inforce variable annuity product has a 5% roll-up, meaning beneficiary receives greater of • Current market value • Or net premium accumulated at 5% annually Actual GMDB costs are significantly less than statutory reserves would imply

  21. Deferred Acquisition Costs Overview • Certain costs of acquiring new business are capitalized as deferred acquisition costs • Commissions and certain costs associated with policy issue • Which vary with and are primarily related to the production of new business • Deferred costs recorded as an asset and amortized ratably over life of policy • In proportion to gross profits • To reflect a steady margin on the business • DAC applies to all retail product lines • Very few acquisition costs related to stable value business Deferred Acquisition Costs are amortized into GAAP earnings over life of policy

  22. Deferred Acquisition Costs Amortization • AP results are not impacted by amortization of intangibles • Because acquisition costs are fully expensed when calculating the present value of new business • For U.S. GAAP, amortization is increasing compared to our original assumptions • Due to drop in Variable Annuity fee income stream Separate account balances have decreased along with equity markets

  23. Statutory General Expense Trend Analysis * G&A expense excludes the stable value business and, in 2001, $7.8m marketing reorganization expense. ** Average assets excludes stable value and reverse repo liabilities. *** The peer composite has not been adjusted to eliminate industry stable value assets and expenses, which would raise the peer expense level. JNL has maintained its expense discipline over the past five years despite growing complexity in products and the marketplace

  24. Capital Analysis Pro Forma June 30, 1998 1999 2000 2001 2002 NAIC Risk-Based Capital Ratio 268% 245% 231% 341% 364% Capital Ratio (a) 8.7% 9.1% 8.5% 7.7% 7.5% Capital, Surplus and AVR ($millions) $2,519 $2,733 $2,662 $2,651 $2,292 Notes: (a) (Capital and Surplus, AVR) / (General Account Reserve Liabilities). 2001 data represents consolidated JNL and JNLNY, 2000 and prior are JNL only. June 30, 2002 reflects $500m Q3 capital infusion. Capital ratios impacted by high fixed annuity sales, investment writedowns and Statutory GMDB reserves

  25. Asset Growth and Capital Flows (Cumulative net capital (Total Assets in $ billions) flow in $ millions) $50,000 $500 $47,242 $43,953 $40,521 $40,000 $400 $36,214 $33,096 $29,148 $282 $30,000 $300 $26,000 $238 $226 $21,600 $19,100 $20,000 $200 $169 $16,700 $13,600 $113 $78 $10,000 $100 $59 $53 $39 $20 $0 $0 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 Total Assets Cumulative net capital flow From end of 1991 to end of 2001 JNL returned net capital to the U.K. while nearly quadrupling assets