RATINGS RATIONALE

According to Moody's Senior Vice President Scott Robinson, "REALIC's A1 IFS rating with a stable outlook reflects the expectation that the company will be merged into Jackson over the near term." REALIC's standalone credit profile of A2 reflects the company's strong financial profile, supported by solid capital and good asset quality, offset by a weaker business profile, as the company is essentially in runoff.

Moody's said that given REALIC's A2 stand-alone credit profile is lower than Jackson National's A1 IFS rating, REALIC's A1 rating is unlikely to move up unless Jackson's rating is upgraded. Furthermore, given the runoff status of REALIC, it's unlikely that its stand-alone credit profile will have upward rating pressure.

The rating agency stated that a downgrade of Jackson or a failure to merge REALIC into Jackson over the near term would likely lead to a lowering of REALIC's A1 IFS rating; under the latter case, REALIC would be deemed as a financial investment, not a core investment to Jackson. Additionally, the following could place downward pressure on the stand-alone credit profile of REALIC: 1) NAIC Company Action Level RBC ratio below 275%, or 2) sustained and significant adverse mortality experience relative to pricing assumptions.

REALIC, domiciled in Indiana, reported total statutory assets of $17 billion and capital and surplus of $840 million as of June 30 2012.

The principal methodology used in rating REALIC was Moody's Global Rating Methodology for Reinsurers published in December 2011. Please see the Credit Policy page on www.moodys.com for a copy of this methodology.

Moody's insurance financial strength ratings are opinions of the ability of insurance companies to pay punctually senior policyholder claims and obligations. For more information, please refer to www.moodys.com.

REGULATORY DISCLOSURES

The Global Scale Credit Ratings on this press release that are issued by one of Moody's affiliates outside the EU are endorsed by Moody's Investors Service Ltd., One Canada Square, Canary Wharf, London E 14 5FA, UK, in accordance with Art.4 paragraph 3 of the Regulation (EC) No 1060/2009 on Credit Rating Agencies. Further information on the EU endorsement status and on the Moody's office that has issued a particular Credit Rating is available on www.moodys.com.

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Please see ratings tab on the issuer/entity page on www.moodys.com for the last rating action and the rating history. The date on which some ratings were first released goes back to a time before Moody's ratings were fully digitized and accurate data may not be available. Consequently, Moody's provides a date that it believes is the most reliable and accurate based on the information that is available to it. Please see the ratings disclosure page on our website www.moodys.com for further information.

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Scott Robinson Senior Vice President Financial Institutions Group Moody'sInvestors Service, Inc.250 Greenwich StreetNew York, NY 10007 U.S.A. JOURNALISTS: 212-553-0376 SUBSCRIBERS: 212-553-1653Robert Riegel MD - Insurance Financial Institutions Group JOURNALISTS: 212-553-0376 SUBSCRIBERS: 212-553-1653 Releasing Office: Moody's Investors Service, Inc.250 Greenwich StreetNew York, NY 10007 U.S.A. JOURNALISTS: 212-553-0376 SUBSCRIBERS: 212-553-1653(C) 2012 Moody's Investors Service, Inc. and/or its licensors and affiliates (collectively, "MOODY'S"). All rights reserved.

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