four85bcuriangard.htm

STATEMENT OF ADDITIONAL INFORMATION

April 30, 2012

INDIVIDUAL AND GROUP MODIFIED SINGLE PREMIUM

FIXED AND VARIABLE DEFERRED ANNUITY CONTRACTS

ISSUED BY THE JACKSON NATIONAL SEPARATE ACCOUNT - I

OF JACKSON NATIONAL LIFE INSURANCE COMPANY®

This Statement of Additional Information (SAI) is not a prospectus. It contains information in addition to and more detailed than set forth in the Prospectus and should be read in conjunction with the Prospectus dated April 30, 2012 . The Prospectus may be obtained from Jackson National Life Insurance Company by writing P.O. Box 30314, Lansing, Michigan 48909-7814, or calling 1-800-873-5654.

TABLE OF CONTENTS
	Page
General Information and History	2
Services	2
Purchase of Securities Being Offered	2
Underwriters	2
Calculation of Performance	2
Additional Tax Information	2
Annuity Provisions	14
Net Investment Factor	15
Condensed Financial Information	16
Financial Statements of the Separate Account
Financial Statements of Jackson

General Information and History

Jackson National Separate Account - I (Separate Account) is a separate investment account of Jackson National Life Insurance Company (Jackson®). Jackson is a wholly owned subsidiary of Brooke Life Insurance Company and is ultimately a wholly owned subsidiary of Prudential plc, London, England, a publicly traded life insurance company in the United Kingdom.

Services

Jackson keeps the assets of the Separate Account. Jackson holds all cash of the Separate Account and attends to the collection of proceeds of shares of the underlying Funds bought and sold by the Separate Account.

The financial statements of Jackson National Separate Account - I and Jackson National Life Insurance Company for the periods indicated have been included herein in reliance upon the reports of KPMG LLP, an independent registered public accounting firm, appearing elsewhere herein, and upon the authority of said firm as experts in accounting and auditing. KPMG LLP is located at 303 East Wacker Drive, Chicago, Illinois 60601.

Purchase of Securities Being Offered

The Contracts will be sold by licensed insurance agents in states where the Contracts may be lawfully sold. The agents will be registered representatives of broker-dealers that are registered under the Securities Exchange Act of 1934 and members of the Financial Industry Regulatory Authority (FINRA).

Underwriters

The Contracts are offered continuously and are distributed by Jackson National Life Distributors LLC (JNLD), 7601 Technology Way, Denver, Colorado 80237. JNLD is a subsidiary of Jackson.

The aggregate amount of underwriting commissions paid to broker/dealers was $2,049 in 2009 , $2,678 in 2010 and $2,957 . We paid no commissions prior to 2007 because the Contracts were not available for sale. JNLD did not retain any portion of the commissions.

Calculation of Performance

When Jackson advertises performance for an Investment Division, we will include quotations of standardized average annual total return to facilitate comparison with standardized average annual total return advertised by other variable annuity separate accounts. Standardized average annual total return for an Investment Division will be shown for periods beginning on the date the Investment Division first invested in the corresponding Funds. We will calculate standardized average annual total return according to the standard methods prescribed by rules of the Securities and Exchange Commission.

Standardized average annual total return for a specific period is calculated by taking a hypothetical $1,000 investment in an Investment Division at the offering on the first day of the period ("initial investment") and computing the average annual compounded rate of return for the period that would equate the initial investment with the ending redeemable value ("redeemable value") of that investment at the end of the period, carried to at least the nearest hundredth of a percent. Standardized average annual total return reflects the deduction of all recurring charges that are charged to all Contracts. The redeemable value also reflects the effect of any applicable withdrawal charge or other charge that may be imposed at the end of the period. No deduction is made for premium taxes that may be assessed by certain states.

Jackson may also advertise non-standardized total return on an annualized and cumulative basis. Non-standardized total return may be for periods other than those required to be presented or may otherwise differ from standardized average annual total return. The Contract is designed for long-term investment; therefore, Jackson believes that non-standardized total return that does not reflect the deduction of any applicable withdrawal charge may be useful to investors. Reflecting the deduction of the withdrawal charge decreases the level of performance advertised. Non-standardized total return may also assume a larger initial investment that more closely approximates the size of a typical Contract.

Standardized average annual total return quotations will be current to the last day of the calendar quarter preceding the date on which an advertisement is submitted for publication. Both standardized average annual total return quotations and non-standardized total return quotations will be based on rolling calendar quarters and will cover at least periods of one, five, and ten years, or a period covering the time the Investment Division has been in existence, if it has not been in existence for one of the prescribed periods.

Quotations of standardized average annual total return and non-standardized total return are based upon historical earnings and will fluctuate. Any quotation of performance should not be considered a guarantee of future performance. Factors affecting the performance of an Investment Division and its corresponding Fund include general market conditions, operating expenses and investment management. An owner's withdrawal value upon surrender of a Contract may be more or less than its original cost.

Jackson may advertise the current annualized yield for a 30-day period for an Investment Division. The annualized yield of an Investment Division refers to the income generated by the Investment Division over a specified 30-day period. Because this yield is annualized, the yield generated by an Investment Division during the 30-day period is assumed to be generated each 30-day period. The yield is computed by dividing the net investment income per accumulation unit earned during the period by the price per unit on the last day of the period, according to the following formula:

Where:

a	=	net investment income earned during the period by the Fund attributable to shares owned by the Investment Division.
b	=	expenses for the Investment Division accrued for the period (net of reimbursements).
c	=	the average daily number of accumulation units outstanding during the period.
d	=	the maximum offering price per accumulation unit on the last day of the period.

The maximum withdrawal charge is 5%.

Net investment income will be determined in accordance with rules established by the Securities and Exchange Commission. Accrued expenses will include all recurring fees that are charged to all Contracts.

Because of the charges and deductions imposed by the Separate Account, the yield for an Investment Division will be lower than the yield for the corresponding Funds. The yield on amounts held in the Investment Division normally will fluctuate over time. Therefore, the disclosed yield for any given period is not an indication or representation of future yields or rates of return. An Investment Division's actual yield will be affected by the types and quality of portfolio securities held by the Fund and the Fund operating expenses.

Additional Tax Information

NOTE: INFORMATION CONTAINED HEREIN SHOULD NOT BE SUBSTITUTED FOR THE ADVICE OF A PERSONAL TAX ADVISER. JACKSON DOES NOT MAKE ANY GUARANTEE REGARDING THE TAX STATUS OF ANY CONTRACT OR ANY TRANSACTION INVOLVING THE CONTRACTS. PURCHASERS BEAR THE COMPLETE RISK THAT THE CONTRACTS MAY NOT BE TREATED AS "ANNUITY CONTRACTS" UNDER FEDERAL INCOME TAX LAWS. IT SHOULD BE FURTHER UNDERSTOOD THAT THE FOLLOWING DISCUSSION IS NOT EXHAUSTIVE AND THAT OTHER SPECIAL RULES MAY BE APPLICABLE IN CERTAIN SITUATIONS. MOREOVER, NO ATTEMPT HAS BEEN MADE TO CONSIDER ANY APPLICABLE STATE OR OTHER TAX LAWS OR TO COMPARE THE TAX TREATMENT OF THE CONTRACTS TO THE TAX TREATMENT OF ANY OTHER INVESTMENT.

Jackson's Tax Status

Jackson is taxed as a life insurance company under the Internal Revenue Code of 1986, as amended (the "Code"). For federal income tax purposes, the Separate Account is not a separate entity from Jackson and its operations form a part of Jackson.

Taxation of Annuity Contracts in General

Section 72 of the Code governs the taxation of annuities in general. An individual owner is not taxed on increases in the value of a Contract until distribution occurs, either in the form of a withdrawal or as annuity payments under the annuity option elected. For a withdrawal received as a total surrender (total redemption or a death benefit), the recipient is taxed on the portion of the payment that exceeds the cost basis of the Contract. For a payment received as a partial withdrawal from a non-qualified Contract, federal tax liability is generally determined on a last-in, first-out basis, meaning taxable income is withdrawn before the cost basis of the Contract is withdrawn. In the case of a partial withdrawal under a tax-qualified Contract, a ratable portion of the amount received is taxable. For Contracts issued in connection with non-qualified plans, the cost basis is generally the premiums, while for Contracts issued in connection with tax-qualified plans there may be no cost basis. The taxable portion of a withdrawal is taxed at ordinary income tax rates. Tax penalties may also apply.

For annuity payments, a portion of each payment in excess of an exclusion amount is includable in taxable income. All annuity payments in excess of the exclusion amount are fully taxable at ordinary income rates.

The exclusion amount for payments based on a fixed annuity option is determined by multiplying the payment by the ratio that the cost basis of the Contract (adjusted for any period certain or refund feature) bears to the expected return under the Contract. The exclusion amount for payments based on a variable annuity option is determined by dividing the cost basis of the Contract (adjusted for any period certain or refund guarantee) by the fixed or estimated number of years for which annuity payments are to be made. No exclusion is allowed with respect to any payments received after the investment in the Contract has been recovered (i.e., when the total of the excludable amounts equals the investment in the Contract). For certain types of tax-qualified plans there may be no cost basis in the Contract within the meaning of Section 72 of the Code. Owners, annuitants and beneficiaries under the Contracts should seek competent financial advice about the tax consequences of distributions.

Medicare Tax on Net Investment Income

Beginning in 2013, the taxable portion of distributions from a non-qualified annuity Contract will be considered investment income for purposes of the new Medicare tax on investment income. As a result, a 3.8% tax will generally apply to some or all of the taxable portion of distributions to individuals whose modified adjusted gross income exceeds certain threshold amounts. For 2013, these levels are $200,000 in the case of single taxpayers, $250,000 in the case of married taxpayers filing joint returns, and $125,000 in the case of married taxpayers filing separately. Owners should consult their own tax advisers for more information.

Withholding Tax on Distributions

The Code generally requires Jackson (or, in some cases, a plan administrator) to withhold tax on the taxable portion of any distribution or withdrawal from a Contract. For "eligible rollover distributions" from Contracts issued under certain types of tax-qualified plans, 20% of the distribution must be withheld, unless the payee elects to have the distribution "rolled over" to another eligible plan in a direct transfer. This requirement is mandatory and cannot be waived by the owner.

An "eligible rollover distribution" is the taxable portion of any amount received by a covered employee from a plan qualified under Section 401(a) or 403(a) of the Code, from a tax sheltered annuity qualified under Section 403(b) of the Code or an eligible deferred compensation plan of a state or local government under Section 457(b) of the Code (other than (1) a series of substantially equal periodic payments (not less frequently than annually) for the life (or life expectancy) of the employee, or joint lives (or joint life expectancies) of the employee, and his or her designated beneficiary, or for a specified period of ten years or more; (2) minimum distributions required to be made under the Code; and (3) hardship withdrawals). Failure to "roll over" the entire amount of an eligible rollover distribution (including the amount equal to the 20% portion of the distribution that was withheld) could have adverse tax consequences, including the imposition of a penalty tax on premature withdrawals, described later in this section.

Withdrawals or distributions from a Contract other than eligible rollover distributions are also subject to withholding on the taxable portion of the distribution, but the owner may elect in such cases to waive the withholding requirement. If not waived, withholding is imposed (1) for periodic payments, at the rate that would be imposed if the payments were wages, or (2) for other distributions, at the rate of 10%. If no withholding exemption certificate is in effect for the payee, the rate under (1) above is computed by treating the payee as a married individual claiming three withholding exemptions.

Generally, the amount of any payment of interest to a non-resident alien of the United States shall be subject to withholding of a tax equal to 30% of such amount or, if applicable, a lower treaty rate. A payment may not be subject to withholding where the recipient sufficiently establishes that such payment is effectively connected to the recipient's conduct of a trade or business in the United States and such payment is included in the recipient's gross income.

Diversification -- Separate Account Investments

Section 817(h) of the Code imposes certain asset diversification standards on variable annuity Contracts. The Code provides that a variable annuity Contract will not be treated as an annuity Contract for any period (and any subsequent period) for which the investments held in any segregated asset account underlying the Contract are not adequately diversified, in accordance with regulations prescribed by the United States Treasury Department ("Treasury Department"). Disqualification of the Contract as an annuity Contract would result in imposition of federal income tax to the owner with respect to earnings allocable to the Contract prior to the receipt of payments under the Contract. The Code contains a safe harbor provision which provides that annuity Contracts, such as the Contracts, meet the diversification requirements if, as of the last day of each calendar quarter, or within 30 days after such last day, the underlying assets meet the diversification standards for a regulated investment company and no more than 55% of the total assets consist of cash, cash items, U.S. government securities and securities of other regulated investment companies.

The Treasury Department has issued Regulations establishing diversification requirements for the mutual Funds underlying variable Contracts. These Regulations amplify the diversification requirements for variable Contracts set forth in the Code and provide an alternative to the safe harbor provision described above. Under these Regulations, a mutual Fund will be deemed adequately diversified if (1) no more than 55% of the value of the total assets of the mutual Fund is represented by any one investment; (2) no more than 70% of the value of the total assets of the mutual Fund is represented by any two investments; (3) no more than 80% of the value of the total assets of the mutual Fund is represented by any three investments; and (4) no more than 90% of the value of the total assets of the mutual Fund is represented by any four investments.

Jackson intends that each Fund of the JNL Series Trust will be managed by its respective investment adviser in such a manner as to comply with these diversification requirements.

At the time the Treasury Department issued the diversification Regulations, it did not provide guidance regarding the circumstances under which Contract owner control of the investments of a segregated asset account would cause the Contract owner to be treated as the owner of the assets of the segregated asset account. Revenue Ruling 2003-91 provides such guidance by describing the circumstances under which the owner of a variable contract will not possess sufficient control over the assets underlying the contract to be treated as the owner of those assets for federal income tax purposes.

Rev. Rul. 2003-91 considered certain variable annuity and variable life insurance contracts and held that the types of actual and potential control that the contract owners could exercise over the investment assets held by the insurance company under these variable contracts was not sufficient to cause the contract owners to be treated as the owners of those assets and thus to be subject to current income tax on the income and gains produced by those assets. Under the contracts in Rev. Rul. 2003-91 there was no arrangement, plan, contract or agreement between the contract owner and the insurance company regarding the availability of a particular investment option and other than the contract owner's right to allocate premiums and transfer funds among the available sub-accounts, all investment decisions concerning the sub-accounts were made by the insurance company or an advisor in its sole and absolute discretion. Twelve investment options were available under the contracts in Rev. Rul. 2003-91 although the insurance company had the right to increase (but to no more than 20) or decrease the number of sub-accounts at any time. The contract owner was permitted to transfer amounts among the various investment options without limitation, subject to incurring fees for more than one transfer per 30-day period.

Like the contracts described in Rev. Rul. 2003-91, under the Contract there will be no arrangement, plan, contract or agreement between a Contract owner and Jackson regarding the availability of a particular Allocation Option and other than the Contract owner's right to allocate premiums and transfer funds among the available Allocation Options, all investment decisions concerning the Allocation Options will be made by Jackson or an advisor in its sole and absolute discretion. The Contract will differ from the contracts described in Rev. Rul. 2003-91 in two respects. The first difference is that the contracts described in Rev. Rul. 2003-91 provided only 12 investment options with the insurance company having the ability to add an additional 8 options whereas the Contract currently offers 3 Investment Divisions and at least 1 Fixed Account option. The second difference is that the owner of a contract in Rev. Rul. 2003-91 could only make one transfer per 30-day period without a fee whereas during the accumulation phase, a Contract owner is permitted to make up to 15 transfers in any one year without a charge.

Rev. Rul. 2003-91 states that whether the owner of a variable contract is to be treated as the owner of the assets held by the insurance company under the contract will depend on all of the facts and circumstances. Jackson does not believe that the differences between the Contract and the contracts described in Rev. Rul. 2003-91 with respect to the number of investment choices and the number of investment transfers that can be made under the Contract without an additional charge should prevent the holding in Rev. Rul. 2003-91 from applying to the owner of a Contract. At this time, however, it cannot be determined whether additional guidance will be provided by the IRS on this issue and what standards may be contained in such guidance. Jackson reserves the right to modify the Contract to the extent required to maintain favorable tax treatment.

Multiple Contracts

The Code provides that multiple non-qualified annuity Contracts that are issued within a calendar year to the same Contract owner by one company or its affiliates are treated as one annuity Contract for purposes of determining the tax consequences of any distribution. Such treatment may result in adverse tax consequences including more rapid taxation of the distributed amounts from such multiple Contracts. For purposes of this rule, Contracts received in a Section 1035 exchange will be considered issued in the year of the exchange. Owners should consult a tax adviser prior to purchasing more than one annuity Contract in any calendar year.

Partial 1035 Exchanges

In accordance with Revenue Procedure 2011-38 , the IRS will consider a partial exchange of an annuity Contract for another annuity Contract valid if there is either no withdrawal from, or surrender of, either the surviving annuity contract or the new annuity contract within 180 days of the date of the partial exchange. Revenue Procedure 2011-38 also provides certain exceptions to the 180 day rule. Due to the complexity of these rules, owners are encouraged to consult their own tax advisers prior to entering into a partial exchange of an annuity Contract.

Contracts Owned by Other Than Natural Persons

Under Section 72(u) of the Code, the investment earnings on premiums for Contracts will be taxed currently to the owner if the owner is a non-natural person, e.g., a corporation or certain other entities. Such Contracts generally will not be treated as annuities for federal income tax purposes (except for the taxation of life insurance companies). However, this treatment is not applied to Contracts held by a trust or other entity as an agent for a natural person nor to Contracts held by certain tax-qualified plans. Purchasers should consult their own tax counsel or other tax adviser before purchasing a Contract to be owned by a non-natural person.

Tax Treatment of Assignments

An assignment or pledge of a Contract may have tax consequences. Any assignment or pledge of a tax-qualified Contract may also be prohibited by ERISA in some circumstances. Owners should, therefore, consult competent legal advisers should they wish to assign or pledge their Contracts.

An assignment or pledge of all or any portion of the value of a Non-Qualified Contract is treated under Section 72 of the Code as an amount not received as an annuity. The value of the Contract assigned or pledged that exceeds the aggregate premiums paid will be included in the individual's gross income. In addition, the amount included in the individual's gross income could also be subject to the 10% penalty tax discussed below under Non-Qualified Contracts.

An assignment or pledge of all or any portion of the value of a Qualified Contract will disqualify the Qualified Contract. If the Qualified Contract is part of a qualified pension or profit-sharing plan, the Code prohibits the assignment or alienation of benefits provided under the plan. If the Qualified Contract is an IRA annuity or a 403(b) annuity, the Code requires the Qualified Contract to be nontransferable. If the Qualified Contract is part of an eligible deferred compensation plan, amounts cannot be made available to plan participants or beneficiaries: (1) until the calendar year in which the participant attains age 70 1/2; (2) when the participant has a severance from employment; or (3) when the participant is faced with an unforeseeable emergency.

Death Benefits

Any death benefits paid under the Contract are taxable to the beneficiary. The rules governing the taxation of payments from an annuity Contract, as discussed above, generally apply to the payment of death benefits and depend on whether the death benefits are paid as a lump sum or as annuity payments. Estate or gift taxes may also apply.

Tax-Qualified Plans

The Contracts offered by the Prospectus are designed to be suitable for use under various types of tax-qualified plans. Taxation of owners of a tax-qualified Contract will vary based on the type of plan and the terms and conditions of each specific plan. Owners, annuitants and beneficiaries are cautioned that benefits under a tax-qualified Contract may be subject to the terms and conditions of the plan, regardless of the terms and conditions of the Contracts issued to fund the plan. Owners, annuitant and beneficiaries are also reminded that a tax-qualified Contract will not provide any necessary or additional tax deferral if it is used to fund a tax-qualified plan that is already tax-deferred.

Tax Treatment of Withdrawals

Non-Qualified Contracts

Section 72 of the Code governs treatment of distributions from annuity Contracts. It provides that if the Contract value exceeds the aggregate premiums made, any amount withdrawn not in the form of an annuity payment will be treated as coming first from the earnings and then, only after the income portion is exhausted, as coming from the principal. Withdrawn earnings are included in a taxpayer's gross income. Section 72 further provides that a 10% penalty will apply to the income portion of any distribution. The penalty is not imposed on amounts received: (1) after the taxpayer reaches 59 1/2; (2) upon the death of the owner; (3) if the taxpayer is totally disabled as defined in Section 72(m)(7) of the Code; (4) in a series of substantially equal periodic payments made at least annually for the life (or life expectancy) of the taxpayer or for the joint lives (or joint life expectancies) of the taxpayer and his beneficiary; (5) under an immediate annuity; or (6) which are allocable to premium payments made prior to August 14, 1982.

With respect to (4) above, if the series of substantially equal periodic payments is modified before the later of your attaining age 59 1/2 or five years from the date of the first periodic payment, then the tax for the year of the modification is increased by an amount equal to the tax which would have been imposed (the 10% penalty tax) but for the exception, plus interest for the tax years in which the exception was used.

Tax-Qualified Contracts

In the case of a withdrawal under a tax-qualified Contract, a ratable portion of the amount received is taxable, generally based on the ratio of the individual's cost basis to the individual's total accrued benefit under the retirement plan. Special tax rules may be available for certain distributions from a tax-qualified Contract. Section 72(t) of the Code imposes a 10% penalty tax on the taxable portion of any distribution from qualified retirement plans, including Contracts issued and qualified under Code Sections 401 (pension and profit sharing plans), 403(b) (tax-sheltered annuities), individual retirement accounts and annuities under 408(a) and (b) (IRAs) and Roth IRAs under 408A. To the extent amounts are not included in gross income because they have been rolled over to an IRA or to another eligible qualified plan, no tax penalty will be imposed.

The tax penalty will not apply to the following distributions: (1) distributions made on or after the date on which the owner or annuitant (as applicable) reaches age 59 1/2; (2) distributions following the death or disability of the owner or annuitant (as applicable) (for this purpose "disability" is defined in Section 72(m)(7) of the Code); (3) distributions that are part of a series of substantially equal periodic payments made not less frequently than annually for the life (or life expectancy) of the owner or annuitant (as applicable) or the joint lives (or joint life expectancies) of such owner or annuitant (as applicable) and his or her designated beneficiary; (4) distributions to an owner or annuitant (as applicable) who has separated from service after he has attained age 55; (5) distributions made to the owner or annuitant (as applicable) to the extent such distributions do not exceed the amount allowable as a deduction under Code Section 213 to the owner or annuitant (as applicable) for amounts paid during the taxable year for medical care; (6) distributions made to an alternate payee pursuant to a qualified domestic relations order; (7) distributions made on account of an IRS levy upon the qualified Contracts; (8) distributions from an IRA after separation from employment for the purchase of medical insurance (as described in Section 213(d)(1)(D) of the Code) for the Contract owner or annuitant (as applicable) and his or her spouse and dependents if the Contract owner or annuitant (as applicable) has received unemployment compensation for at least 12 weeks (this exception will no longer apply after the Contract owner or annuitant (as applicable) has been re-employed for at least 60 days); (9) distributions from an IRA made to the owner or annuitant (as applicable) to the extent such distributions do not exceed the qualified higher education expenses (as defined in Section 72(t)(7) of the Code) (as applicable) for the taxable year; and (10) distributions from an IRA made to the owner or annuitant (as applicable) which are qualified first time home buyer distributions (as defined in Section 72(t)(8) of the Code). The exceptions stated in items (4) and (6) above do not apply in the case of an IRA. The exception stated in (3) above applies to an IRA without the requirement that there be a separation from service.

With respect to (3) above, if the series of substantially equal periodic payments is modified before the later of your attaining age 59 1/2 or five years from the date of the first periodic payment, then the tax for the year of the modification is increased by an amount equal to the tax which would have been imposed (the 10% penalty tax) but for the exception, plus interest for the tax years in which the exception was used.

Withdrawals of amounts attributable to contributions made pursuant to a salary reduction agreement (in accordance with Section 403(b)(11) of the Code) are limited to the following: when the owner attains age 59 1/2, severs employment, dies, becomes disabled (within the meaning of Section 72(m)(7) of the Code), or in the case of hardship. Hardship withdrawals do not include any earnings on salary reduction contributions. These limitations on withdrawals apply to: (1) salary reduction contributions made after December 31, 1988; (2) income attributable to such contributions; and (3) income attributable to amounts held as of December 31, 1988. The limitations on withdrawals do not affect rollovers or exchanges between certain tax-qualified plans. Tax penalties may also apply. While the foregoing limitations only apply to certain Contracts issued in connection with Section 403(b) plans, all owners should seek competent tax advice regarding any withdrawals or distributions.

The taxable portion of a withdrawal or distribution from tax-qualified Contracts may, under some circumstances, be "rolled over" into another eligible plan so as to continue to defer income tax on the taxable portion. Such treatment is available for an "eligible rollover distribution" made by certain types of plans (as described above under "Taxes – Withholding Tax on Distributions") that is transferred within 60 days of receipt into another eligible plan or an IRA. Plans making such eligible rollover distributions are also required, with some exceptions specified in the Code, to provide for a direct transfer of the distribution to the transferee plan designated by the recipient.

Amounts received from IRAs may also be rolled over into other IRAs or certain other plans, subject to limitations set forth in the Code.

Prior to the date that annuity payments begin under an annuity Contract, the required minimum distribution rules applicable to defined contribution plans and IRAs will be used. Generally, distributions from a tax-qualified plan must commence no later than April 1 of the calendar year following the year in which the employee attains the later of age 70 1/2 or the date of retirement. In the case of an IRA, distributions must commence no later than April 1 of the calendar year following the year in which the owner attains age 70 1/2. Required distributions from defined contribution plans and IRAs are determined by dividing the account balance by the appropriate distribution period found in a uniform lifetime distribution table set forth in IRS regulations. For this purpose, the entire interest under an annuity Contract is the account value under the Contract plus the actuarial value of any other benefits such as guaranteed death benefits that will be provided under the Contract.

If the sole beneficiary is the Contract holder's or employee's spouse and the spouse is more than 10 years younger than the employee, a longer distribution period measured by the joint life and last survivor expectancy of the Contract holder employee and spouse is permitted to be used. Distributions under a defined benefit plan or an annuity Contract must be paid in the form of periodic annuity payments for the employee's life (or the joint lives of the employee and beneficiary) or over a period certain that does not exceed the period under the uniform lifetime table for the employee's age in the year in which the annuity starting date occurs. If the required minimum distributions are not made, a 50% penalty tax on the amount not distributed is imposed on the individual.

Types of Tax-Qualified Plans

The Contracts offered herein are designed to be suitable for use under various types of tax-qualified plans. Taxation of participants in each tax-qualified plan varies with the type of plan and terms and conditions of each specific plan. Owners, annuitants and beneficiaries are cautioned that benefits under a tax-qualified plan may be subject to the terms and conditions of the plan regardless of the terms and conditions of the Contracts issued pursuant to the plan. Some retirement plans are subject to distribution and other requirements that are not incorporated into Jackson's administrative procedures. Jackson is not bound by the terms and conditions of such plans to the extent such terms conflict with the terms of a Contract, unless Jackson specifically consents to be bound. Owners, annuitants and beneficiaries are responsible for determining that contributions, distributions and other transactions with respect to the Contracts comply with applicable law.

A tax-qualified Contract will not provide any necessary or additional tax deferral if it is used to fund a tax-qualified plan that is tax deferred. However, the Contract has features and benefits other than tax deferral that may make it an appropriate investment for a tax-qualified plan. Following are general descriptions of the types of tax-qualified plans with which the Contracts may be used. Such descriptions are not exhaustive and are for general informational purposes only. The tax rules regarding tax-qualified plans are very complex and will have differing applications depending on individual facts and circumstances. Each purchaser should obtain competent tax advice prior to purchasing a Contract issued under a tax-qualified plan.

Contracts issued pursuant to tax-qualified plans include special provisions restricting Contract provisions that may otherwise be available as described herein. Generally, Contracts issued pursuant to tax-qualified plans are not transferable except upon surrender or annuitization. Various penalty and excise taxes may apply to contributions or distributions made in violation of applicable limitations. Furthermore, certain withdrawal penalties and restrictions may apply to surrenders from Tax-Qualified Contracts. (See "Tax Treatment of Withdrawals – Tax-Qualified Contracts" above.)

On July 6, 1983, the Supreme Court decided in Arizona Governing Committee v. Norris that benefits provided under an employer's deferred compensation plan could not, under Title VII of the Civil Rights Act of 1964, vary between men and women. The Contracts sold by Jackson in connection with certain Tax-Qualified Plans will utilize tables that do not differentiate on the basis of sex. Such annuity tables will also be available for use in connection with certain non-qualified deferred compensation plans.

(a) Tax-Sheltered Annuities

Section 403(b) of the Code permits the purchase of "tax-sheltered annuities" by public schools and certain charitable, educational and scientific organizations described in Section 501(c)(3) of the Code. These qualifying employers may make contributions to the Contracts for the benefit of their employees. Such contributions are not included in the gross income of the employee until the employee receives distributions from the Contract. The amount of contributions to the tax-sheltered annuity is limited to certain maximums imposed by the Code. Furthermore, the Code sets forth additional restrictions governing such items as transferability, distributions, non-discrimination and withdrawals. Employee loans are not allowed under these Contracts. Any employee should obtain competent tax advice as to the tax treatment and suitability of such an investment.

(b) Individual Retirement Annuities

Section 408(b) of the Code permits eligible individuals to contribute to an individual retirement program known as an "individual retirement annuity" ("IRA annuity"). Under applicable limitations, certain amounts may be contributed to an IRA annuity that will be deductible from the individual's gross income. IRA annuities are subject to limitations on eligibility, contributions, transferability and distributions. Sales of IRA annuities are subject to special requirements imposed by the Code, including the requirement that certain informational disclosure be given to persons desiring to establish an IRA. Purchasers of Contracts to be qualified as IRA annuities should obtain competent tax advice as to the tax treatment and suitability of such an investment.

Section 408A of the Code provides that individuals may purchase a non-deductible IRA annuity, known as a Roth IRA annuity. Purchase payments for Roth IRA annuities are limited to a maximum of $5,000 for 2012 . The limit will be adjusted annually for inflation in $500 increments. In addition, the Act allows individuals age 50 and older to make additional catch-up IRA contributions. The otherwise maximum contribution limit (before application of adjusted gross income phase-out limits) for an individual who had celebrated his or her 50th birthday before the end of the tax year is increased by $1,000. The same contribution and catch-up contributions are also available for purchasers of Traditional IRA annuities.

Lower maximum limitations apply to individuals above certain adjusted gross income levels. For 2012 , these levels are $ 110 ,000 in the case of single taxpayers, $ 173 ,000 in the case of married taxpayers filing joint returns, and $0 in the case of married taxpayers filing separately. These levels are indexed annually in $1,000 increments.

An overall $5,000 annual limitation (increased as discussed above) continues to apply to all of a taxpayer's IRA annuity contributions, including Roth IRA annuities and non-Roth IRA annuities.

Qualified distributions from Roth IRA annuities are free from federal income tax. A qualified distribution requires that the individual has held the Roth IRA annuity for at least five years and, in addition, that the distribution is made either after the individual reaches age 59 1/2, on the individual's death or disability, or as a qualified first-time home purchase, subject to a $10,000 lifetime maximum, for the individual, a spouse, child, grandchild, or ancestor. Any distribution that is not a qualified distribution is taxable to the extent of earnings in the distribution. Distributions are treated as made from contributions first and therefore no distributions are taxable until distributions exceed the amount of contributions to the Roth IRA annuity. The 10% penalty tax and the regular IRA annuity exceptions to the 10% penalty tax apply to taxable distributions from Roth IRA annuities.

Amounts may be rolled over from one Roth IRA annuity to another Roth IRA annuity. Furthermore, an individual may make a rollover contribution from a non-Roth IRA annuity to a Roth IRA annuity. The individual must pay tax on any portion of the IRA annuity being rolled over that would be included in income if the distributions were not rolled over. For rollovers in 2010, the income may be reported ratably in 2011 and 2012. There are no similar limitations on rollovers from one Roth IRA annuity to another Roth IRA annuity.

(d) Pension and Profit-Sharing Plans

The Internal Revenue Code permits employers, including self-employed individuals, to establish various types of qualified retirement plans for employees. These retirement plans may permit the purchase of the Contracts to provide benefits under the plan. Contributions to the plan for the benefit of employees will not be included in the gross income of the employee until distributed from the plan. The tax consequences to owners may vary depending upon the particular plan design. However, the Code places limitations on all plans on such items as amount of allowable contributions; form, manner and timing of distributions; vesting and non-forfeitability of interests; nondiscrimination in eligibility and participation; and the tax treatment of distributions, transferability of benefits, withdrawals and surrenders. Purchasers of Contracts for use with pension or profit sharing plans should obtain competent tax advice as to the tax treatment and suitability of such an investment.

(e) Eligible Deferred Compensation Plans - Section 457

Under Code provisions, employees and independent Contractors performing services for state and local governments and other tax-exempt organizations may participate in eligible deferred compensation plans under Section 457 of the Code. The amounts deferred under a Plan that meets the requirements of Section 457 of the Code are not taxable as income to the participant until paid or otherwise made available to the participant or beneficiary. As a general rule, the maximum amount that can be deferred in any one year is the lesser of 100% of the participant's includible compensation or the $17,000 elective deferral limitation in 2012 . The limit is indexed for inflation in $500 increments annually thereafter. In addition, the Act allows individuals in eligible deferred compensation plans of state or local governments age 50 and older to make additional catch-up contributions. The otherwise maximum contribution limit for an individual who had celebrated his or her 50th birthday before the end of the tax year is increased by $5,500.

The same contribution and catch-up contributions are also available for participants in qualified pension and profit-sharing plans and tax-sheltered annuities under Section 403(b) of the Code.

In limited circumstances, the plan may provide for additional catch-up contributions in each of the last three years before normal retirement age. Furthermore, the Code provides additional requirements and restrictions regarding eligibility and distributions.

All of the assets and income of an eligible deferred compensation plan established by a governmental employer must be held in trust for the exclusive benefit of participants and their beneficiaries. For this purpose, custodial accounts and certain annuity Contracts are treated as trusts. The requirement of a trust does not apply to amounts under a Plan of a tax-exempt (non-governmental) employer. In addition, the requirement of a trust does not apply to amounts under a Plan of a governmental employer if the Plan is not an eligible plan within the meaning of Section 457(b) of the Code. In the absence of such a trust, amounts under the plan will be subject to the claims of the employer's general creditors.

In general, distributions from a Plan are prohibited under Section 457 of the Code unless made after the participant:

●	attains age 70 1/2,
●	severs employment,
●	dies, or
●	suffers an unforeseeable financial emergency as defined in the regulations.

Under present federal tax law, amounts accumulated in a Plan of a tax-exempt (non-governmental) employer under Section 457 of the Code cannot be transferred or rolled over on a tax-deferred basis except for certain transfers to other Plans under Section 457. Amounts accumulated in a Plan of a state or local government employer may be transferred or rolled over to another eligible deferred compensation plan of a state or local government, an IRA, a qualified pension or profit-sharing plan or a tax-sheltered annuity under Section 403(b) of the Code.

Annuity Provisions

Variable Annuity Payment

The initial annuity payment is determined by taking the Contract value allocated to that Investment Division, less any premium tax and any applicable Contract charges, and then applying it to the income option table specified in the Contract. The appropriate rate must be determined by the sex (except where, as in the case of certain Qualified Plans and other employer-sponsored retirement plans, such classification is not permitted) and age of the annuitant and designated second person, if any.

The dollars applied are divided by 1,000 and the result multiplied by the appropriate annuity factor appearing in the table to compute the amount of the first monthly payment. That amount is divided by the value of an annuity unit as of the Income Date to establish the number of annuity units representing each variable payment. The number of annuity units determined for the first variable payment remains constant for the second and subsequent monthly variable payments, assuming that no reallocation of Contract values is made.

The amount of the second and each subsequent monthly variable payment is determined by multiplying the number of annuity units by the annuity unit value as of the business day next preceding the date on which each payment is due.

The mortality and expense experience will not adversely affect the dollar amount of the variable annuity payments once payments have commenced.

Annuity Unit Value

The initial value of an annuity unit of each Investment Division was set when the Investment Divisions were established. The value may increase or decrease from one business day to the next. The income option tables contained in the Contract are based on an assumed investment rate of 3%.

The value of a fixed number of annuity units will reflect the investment performance of the Investment Divisions elected, and the amount of each payment will vary accordingly.

For each Investment Division, the value of an annuity unit for any business day is determined by multiplying the annuity unit value for the immediately preceding business day by the percentage change in the value of an accumulation unit from the immediately preceding business day to the business day of valuation, calculated by use of the Net Investment Factor, described below. The result is then multiplied by a second factor which offsets the effect of the assumed net investment rate of 3%.

Net Investment Factor

The net investment factor is an index applied to measure the net investment performance of an Investment Division from one valuation date to the next. The net investment factor for any Investment Division for any valuation period during the accumulation and annuity phases is determined by dividing (a) by (b) and then subtracting (c) from the result where:

(a)	is the net result of:
	(1)	the net asset value of a Fund's share held in the Investment Division determined as of the valuation date at the end of the valuation period, plus
	(2)	the per share amount of any dividend or other distribution declared by the Fund if the "ex-dividend" date occurs during the valuation period, plus or minus
	(3)	a per share credit or charge with respect to any taxes paid or reserved for by Jackson during the valuation period which are determined by Jackson to be attributable to the operation of the Investment Division (no federal income taxes are applicable under present law);
(b)	is the net asset value of the Fund share held in the Investment Division determined as of the valuation date at the end of the preceding valuation period; and
(c)	is the asset charge factor determined by Jackson for the valuation period to reflect the asset-based charges (the mortality and expense risk charge), administration charge, and any applicable charges for optional benefits.

Also see "Income Payments (The Income Phase)" in the Prospectus.

Condensed Financial Information

Accumulation Unit Values

The tables reflect the accumulation unit values for each Investment Division for the beginning and end of the periods indicated, and the number of accumulation units outstanding as of the end of the periods indicated – for Contracts with all levels of charges (and combinations of optional endorsements). The tables do not provide partial year information. The tables provide accumulation unit values and the number of accumulation units outstanding only if that information is available throughout the period. Where accumulation unit values and the number of accumulation units outstanding are unavailable, either because of a partial year or a Fund not being offered, a “N/A” is provided.

This information derives from the financial statements of the Separate Account, which together constitute the Separate Account’s condensed financial information. Contact the Annuity Service Center to request your copy free of charge, and contact information is on the cover page of the prospectus. Also, please ask about the more timely accumulation unit values that are available for each Investment Division.

Accumulation Unit Values
Base Contract - 0.50%

Investment Divisions	December 31,	December 31,	December 31,	December 31,
	2011	2010	2009	2008
JNL Disciplined Growth Division
Accumulation unit value:
Beginning of period	$8.97	$8.00	N/A	N/A
End of period	$8.65	$8.97	N/A	N/A
Accumulation units outstanding at the end of period	7,485	7,279	N/A	N/A

JNL Disciplined Moderate Division
Accumulation unit value:
Beginning of period	$10.15	$9.18	N/A	N/A
End of period	$10.17	$10.15	N/A	N/A
Accumulation units outstanding at the end of period	42,077	42,290	N/A	N/A

JNL Disciplined Moderate Growth Division
Accumulation unit value:
Beginning of period	$9.49	$8.42	N/A	N/A
End of period	$9.36	$9.49	N/A	N/A
Accumulation units outstanding at the end of period	10,371	10,322	N/A	N/A

Accumulation Unit Values
Base Contract - 0.70%

Investment Divisions	December 31,	December 31,	December 31,	December 31,
	2011	2010	2009	2008
JNL Disciplined Growth Division
Accumulation unit value:
Beginning of period	$8.90	$7.95	N/A	N/A
End of period	$8.56	$8.90	N/A	N/A
Accumulation units outstanding at the end of period	-	-	N/A	N/A

JNL Disciplined Moderate Division
Accumulation unit value:
Beginning of period	$10.07	$9.13	N/A	N/A
End of period	$10.07	$10.07	N/A	N/A
Accumulation units outstanding at the end of period	-	-	N/A	N/A

JNL Disciplined Moderate Growth Division
Accumulation unit value:
Beginning of period	$9.42	$8.37	N/A	N/A
End of period	$9.27	$9.42	N/A	N/A
Accumulation units outstanding at the end of period	-	-	N/A	N/A

Accumulation Unit Values
Base Contract - 0.75%

Investment Divisions	December 31,	December 31,	December 31,	December 31,
	2011	2010	2009	2008
JNL Disciplined Growth Division
Accumulation unit value:
Beginning of period	$8.88	$7.94	N/A	N/A
End of period	$8.54	$8.88	N/A	N/A
Accumulation units outstanding at the end of period	32,867	34,781	N/A	N/A

JNL Disciplined Moderate Division
Accumulation unit value:
Beginning of period	$10.05	$9.12	N/A	N/A
End of period	$10.05	$10.05	N/A	N/A
Accumulation units outstanding at the end of period	13,899	11,018	N/A	N/A

JNL Disciplined Moderate Growth Division
Accumulation unit value:
Beginning of period	$9.40	$8.36	N/A	N/A
End of period	$9.25	$9.40	N/A	N/A
Accumulation units outstanding at the end of period	31,402	32,197	N/A	N/A

Accumulation Unit Values
Base Contract - 1.05%

Investment Divisions	December 31,	December 31,	December 31,	December 31,
	2011	2010	2009	2008
JNL Disciplined Growth Division
Accumulation unit value:
Beginning of period	$8.78	$7.87	N/A	N/A
End of period	$8.42	$8.78	N/A	N/A
Accumulation units outstanding at the end of period	17,317	22,877	N/A	N/A

JNL Disciplined Moderate Division
Accumulation unit value:
Beginning of period	$9.93	$9.04	N/A	N/A
End of period	$9.90	$9.93	N/A	N/A
Accumulation units outstanding at the end of period	4,450	4,362	N/A	N/A

JNL Disciplined Moderate Growth Division
Accumulation unit value:
Beginning of period	$9.29	$8.28	N/A	N/A
End of period	$9.11	$9.29	N/A	N/A
Accumulation units outstanding at the end of period	21,617	21,797	N/A	N/A

Jackson National Separate Account I

Financial Statements

December 31, 2011

Jackson National Separate Account I

Statements of Assets and Liabilities

December 31, 2011

	JNL Disciplined Growth Portfolio		JNL Disciplined Moderate Portfolio		JNL Disciplined Moderate Growth Portfolio		JNL Institutional Alt 20 Portfolio		JNL Institutional Alt 35 Portfolio		JNL Institutional Alt 50 Portfolio		JNL Institutional Alt 65 Portfolio		JNL/American Funds Blue Chip Income and Growth Portfolio		JNL/American Funds Global Bond Portfolio		JNL/American Funds Global Small Capitalization Portfolio
Assets
Investments, at value (a)	$	168,700,101	$	427,041,788	$	473,992,515	$	871,891,705	$	1,349,313,032	$	1,759,138,491	$	942,912,966	$	379,980,507	$	322,986,887	$	121,399,416
Receivables:
Investment securities sold		14,463		141,255		65,709		308,788		374,886		776,542		425,265		1,063,789		37,049		8,810
Sub-account units sold		4,347		547,087		774,211		1,090,865		1,985,734		1,621,181		84,808		1,415,626		877,927		448,872
Total assets		168,718,911		427,730,130		474,832,435		873,291,358		1,351,673,652		1,761,536,214		943,423,039		382,459,922		323,901,863		121,857,098

Liabilities
Payables:
Investment securities purchased		4,347		547,087		774,211		1,090,865		1,985,734		1,621,181		84,808		1,415,626		877,927		448,872
Sub-account units redeemed		7,580		123,498		46,556		274,307		320,352		703,781		385,857		1,048,460		23,611		3,872
Insurance fees due to Jackson		6,883		17,757		19,153		34,481		54,534		72,761		39,408		15,329		13,438		4,938
Total liabilities		18,810		688,342		839,920		1,399,653		2,360,620		2,397,723		510,073		2,479,415		914,976		457,682
Net assets (Note 7)	$	168,700,101	$	427,041,788	$	473,992,515	$	871,891,705	$	1,349,313,032	$	1,759,138,491	$	942,912,966	$	379,980,507	$	322,986,887	$	121,399,416

(a) Investment shares		20,648,727		43,575,693		53,138,174		63,089,125		94,028,783		120,077,713		62,652,024		37,216,504		29,850,914		13,564,181
Investments at cost	$	166,587,581	$	408,749,318	$	454,651,469	$	849,857,954	$	1,326,580,981	$	1,751,586,646	$	952,764,993	$	376,423,867	$	321,516,420	$	139,641,740

See notes to the financial statements.

Page 1

Jackson National Separate Account I

Statements of Assets and Liabilities

December 31, 2011

	JNL/American Funds Growth-Income Portfolio		JNL/American Funds International Portfolio		JNL/American Funds New World Portfolio		JNL/BlackRock Commodity Securities Portfolio		JNL/BlackRock Global Allocation Portfolio		JNL/Brookfield Global Infrastructure Portfolio		JNL/Capital Guardian Global Balanced Portfolio		JNL/Capital Guardian Global Diversified Research Portfolio		JNL/Capital Guardian U.S. Growth Equity Portfolio		JNL/Eagle Core Equity Portfolio
Assets
Investments, at value (a)	$	430,285,946	$	200,814,285	$	261,975,156	$	797,267,266	$	494,124,819	$	981,190	$	351,568,128	$	286,171,678	$	424,723,680	$	136,792,536
Receivables:
Investment securities sold		235,224		32,034		566,097		643,156		572,274		40		134,235		190,692		220,743		60,578
Sub-account units sold		1,877,293		416,605		422,213		771,173		1,993,057		45,465		147,000		108,599		199,005		79,457
Total assets		432,398,463		201,262,924		262,963,466		798,681,595		496,690,150		1,026,695		351,849,363		286,470,969		425,143,428		136,932,571

Liabilities
Payables:
Investment securities purchased		1,877,293		416,605		422,213		771,173		1,993,057		45,465		147,000		108,599		199,005		79,457
Sub-account units redeemed		217,859		23,984		555,346		609,386		551,873		-		119,616		178,805		203,381		54,975
Insurance fees due to Jackson		17,365		8,050		10,751		33,770		20,401		40		14,619		11,887		17,362		5,603
Total liabilities		2,112,517		448,639		988,310		1,414,329		2,565,331		45,505		281,235		299,291		419,748		140,035
Net assets (Note 7)	$	430,285,946	$	200,814,285	$	261,975,156	$	797,267,266	$	494,124,819	$	981,190	$	351,568,128	$	286,171,678	$	424,723,680	$	136,792,536

(a) Investment shares		42,309,336		21,756,694		27,035,620		78,548,499		49,861,233		94,710		39,193,771		13,025,566		19,958,820		18,920,129
Investments at cost	$	430,479,161	$	223,427,827	$	286,941,165	$	789,013,338	$	502,783,913	$	959,021	$	363,318,681	$	277,003,343	$	387,414,797	$	138,299,728

See notes to the financial statements.

Page 2

Jackson National Separate Account I

Statements of Assets and Liabilities

December 31, 2011

	JNL/Eagle SmallCap Equity Portfolio		JNL/Franklin Templeton Founding Strategy Portfolio		JNL/Franklin Templeton Global Growth Portfolio		JNL/Franklin Templeton Global Multisector Bond Portfolio		JNL/Franklin Templeton Income Portfolio		JNL/Franklin Templeton Inter- national Small Cap Growth Portfolio		JNL/Franklin Templeton Mutual Shares Portfolio		JNL/Franklin Templeton Small Cap Value Portfolio		JNL/ Goldman Sachs Core Plus Bond Portfolio		JNL/Goldman Sachs Emerging Markets Debt Portfolio
Assets
Investments, at value (a)	$	624,638,253	$	1,002,735,899	$	150,196,888	$	3,209,081	$	830,111,442	$	159,531,090	$	310,556,587	$	261,575,730	$	576,803,500	$	325,784,260
Receivables:
Investment securities sold		869,926		206,745		59,096		129		552,777		97,822		30,369		371,786		220,939		252,568
Sub-account units sold		2,969,833		1,111,775		134,553		134,595		1,826,586		88,364		626,364		281,144		637,415		156,921
Total assets		628,478,012		1,004,054,419		150,390,537		3,343,805		832,490,805		159,717,276		311,213,320		262,228,660		577,661,854		326,193,749

Liabilities
Payables:
Investment securities purchased		2,969,833		1,111,775		134,553		134,595		1,826,586		88,364		626,364		281,144		637,415		156,921
Sub-account units redeemed		843,444		163,735		52,914		-		517,618		91,110		17,591		360,667		196,454		238,819
Insurance fees due to Jackson		26,482		43,010		6,182		129		35,159		6,712		12,778		11,119		24,485		13,749
Total liabilities		3,839,759		1,318,520		193,649		134,724		2,379,363		186,186		656,733		652,930		858,354		409,489
Net assets (Note 7)	$	624,638,253	$	1,002,735,899	$	150,196,888	$	3,209,081	$	830,111,442	$	159,531,090	$	310,556,587	$	261,575,730	$	576,803,500	$	325,784,260

(a) Investment shares		30,984,040		116,868,986		19,972,990		318,994		83,512,218		23,154,004		37,780,607		24,469,198		47,201,596		27,080,986
Investments at cost	$	631,005,224	$	1,018,051,655	$	157,832,378	$	3,202,813	$	824,375,312	$	168,445,652	$	306,374,466	$	241,248,963	$	576,714,568	$	356,842,200

See notes to the financial statements.

Page 3

Jackson National Separate Account I

Statements of Assets and Liabilities

December 31, 2011

	JNL/ Goldman Sachs Mid Cap Value Portfolio		JNL/Goldman Sachs U.S. Equity Flex Portfolio		JNL/Invesco Global Real Estate Portfolio		JNL/Invesco International Growth Portfolio		JNL/Invesco Large Cap Growth Portfolio		JNL/Invesco Small Cap Growth Portfolio		JNL/Ivy Asset Strategy Portfolio		JNL/JPMorgan International Value Portfolio		JNL/JPMorgan MidCap Growth Portfolio		JNL/JPMorgan U.S.Government & Quality Bond Portfolio
Assets
Investments, at value (a)	$	282,267,994	$	92,895,322	$	408,951,982	$	283,950,685	$	301,830,861	$	167,007,878	$	1,322,819,085	$	263,257,829	$	199,952,299	$	715,933,527
Receivables:
Investment securities sold		237,961		53,423		406,530		233,224		569,426		100,311		394,985		87,431		219,462		1,801,201
Sub-account units sold		335,792		26,040		378,958		217,897		577,328		109,543		1,156,211		226,328		272,228		2,010,626
Total assets		282,841,747		92,974,785		409,737,470		284,401,806		302,977,615		167,217,732		1,324,370,281		263,571,588		200,443,989		719,745,354

Liabilities
Payables:
Investment securities purchased		335,792		26,040		378,958		217,897		577,328		109,543		1,156,211		226,328		272,228		2,010,626
Sub-account units redeemed		225,998		49,511		389,314		221,437		556,541		93,218		339,759		76,183		211,114		1,769,939
Insurance fees due to Jackson		11,963		3,912		17,216		11,787		12,885		7,093		55,226		11,248		8,348		31,262
Total liabilities		573,753		79,463		785,488		451,121		1,146,754		209,854		1,551,196		313,759		491,690		3,811,827
Net assets (Note 7)	$	282,267,994	$	92,895,322	$	408,951,982	$	283,950,685	$	301,830,861	$	167,007,878	$	1,322,819,085	$	263,257,829	$	199,952,299	$	715,933,527

(a) Investment shares		29,525,941		12,707,978		52,767,998		29,701,954		25,731,531		13,307,401		125,266,959		41,457,926		10,613,179		51,506,009
Investments at cost	$	286,612,069	$	93,025,207	$	436,773,960	$	294,479,907	$	304,524,307	$	163,604,009	$	1,385,005,733	$	323,230,786	$	195,503,466	$	690,182,012

See notes to the financial statements.

Page 4

Jackson National Separate Account I

Statements of Assets and Liabilities

December 31, 2011

	JNL/Lazard Emerging Markets Portfolio		JNL/Lazard Mid Cap Equity Portfolio		JNL/M&G Global Basics Portfolio		JNL/M&G Global Leaders Portfolio		JNL/MCM 10 x 10 Portfolio		JNL/MCM 25 Portfolio		JNL/MCM Bond Index Portfolio		JNL/MCM Communications Sector Portfolio		JNL/MCM Consumer Brands Sector Portfolio		JNL/MCM Dow 10 Portfolio
Assets
Investments, at value (a)	$	738,739,472	$	206,247,683	$	54,018,976	$	28,846,795	$	244,930,462	$	501,983,815	$	597,159,838	$	53,185,018	$	107,188,662	$	491,868,277
Receivables:
Investment securities sold		388,139		89,491		31,409		6,221		739,435		877,101		1,286,792		176,877		77,903		752,257
Sub-account units sold		378,626		232,028		113,562		37,717		21,288		603,644		848,126		27,248		522,874		1,971,479
Total assets		739,506,237		206,569,202		54,163,947		28,890,733		245,691,185		503,464,560		599,294,756		53,389,143		107,789,439		494,592,013

Liabilities
Payables:
Investment securities purchased		378,626		232,028		113,562		37,717		21,288		603,644		848,126		27,248		522,874		1,971,479
Sub-account units redeemed		357,088		80,722		29,105		5,010		729,300		855,514		1,260,977		174,531		73,292		730,934
Insurance fees due to Jackson		31,051		8,769		2,304		1,211		10,135		21,587		25,815		2,346		4,611		21,323
Total liabilities		766,765		321,519		144,971		43,938		760,723		1,480,745		2,134,918		204,125		600,777		2,723,736
Net assets (Note 7)	$	738,739,472	$	206,247,683	$	54,018,976	$	28,846,795	$	244,930,462	$	501,983,815	$	597,159,838	$	53,185,018	$	107,188,662	$	491,868,277

(a) Investment shares		75,151,523		18,991,499		4,107,907		2,768,406		30,886,565		37,857,000		49,311,300		16,314,423		10,179,360		41,648,457
Investments at cost	$	796,546,653	$	207,741,369	$	57,188,484	$	32,360,137	$	235,975,163	$	453,022,490	$	578,846,546	$	54,239,275	$	99,542,750	$	426,985,031

See notes to the financial statements.

Page 5

Jackson National Separate Account I

Statements of Assets and Liabilities

December 31, 2011

	JNL/MCM Dow Dividend Portfolio		JNL/MCM Emerging Markets Index Portfolio		JNL/MCM European 30 Portfolio		JNL/MCM Financial Sector Portfolio		JNL/MCM Global 15 Portfolio		JNL/MCM Global Alpha Portfolio		JNL/MCM Healthcare Sector Portfolio		JNL/MCM Index 5 Portfolio		JNL/MCM International Index Portfolio		JNL/MCM JNL 5 Portfolio
Assets
Investments, at value (a)	$	296,677,537	$	3,374,671	$	19,792,732	$	151,290,663	$	400,432,543	$	50,621,864	$	252,885,376	$	380,323,403	$	407,504,533	$	2,666,783,605
Receivables:
Investment securities sold		121,934		342		4,214		67,923		531,723		30,210		159,659		913,982		187,318		1,137,261
Sub-account units sold		1,842,838		67,909		7,396		309,959		463,991		14,756		516,968		1,439,232		488,752		1,034,038
Total assets		298,642,309		3,442,922		19,804,342		151,668,545		401,428,257		50,666,830		253,562,003		382,676,617		408,180,603		2,668,954,904

Liabilities
Payables:
Investment securities purchased		1,842,838		67,909		7,396		309,959		463,991		14,756		516,968		1,439,232		488,752		1,034,038
Sub-account units redeemed		109,189		198		3,395		61,255		514,277		28,067		148,789		898,574		170,008		1,020,683
Insurance fees due to Jackson		12,745		144		819		6,668		17,446		2,143		10,870		15,408		17,310		116,578
Total liabilities		1,964,772		68,251		11,610		377,882		995,714		44,966		676,627		2,353,214		676,070		2,171,299
Net assets (Note 7)	$	296,677,537	$	3,374,671	$	19,792,732	$	151,290,663	$	400,432,543	$	50,621,864	$	252,885,376	$	380,323,403	$	407,504,533	$	2,666,783,605

(a) Investment shares		43,437,414		371,660		2,011,456		24,362,426		25,767,860		4,789,202		20,263,251		40,851,064		38,371,425		324,032,030
Investments at cost	$	320,664,141	$	3,357,375	$	23,096,122	$	162,194,694	$	404,128,548	$	49,782,269	$	239,349,840	$	359,511,697	$	472,336,945	$	3,250,153,679

See notes to the financial statements.

Page 6

Jackson National Separate Account I

Statements of Assets and Liabilities

December 31, 2011

	JNL/MCM JNL Optimized 5 Portfolio		JNL/MCM Nasdaq 25 Portfolio		JNL/MCM NYSE International 25 Portfolio		JNL/MCM Oil & Gas Sector Portfolio		JNL/MCM Pacific Rim 30 Portfolio		JNL/MCM S&P 10 Portfolio		JNL/MCM S&P 24 Portfolio		JNL/MCM S&P 400 MidCap Index Portfolio		JNL/MCM S&P 500 Index Portfolio		JNL/MCM S&P SMid 60 Portfolio
Assets
Investments, at value (a)	$	325,679,592	$	147,276,166	$	66,406,850	$	796,202,477	$	41,344,163	$	205,873,814	$	53,978,700	$	463,970,392	$	892,032,456	$	158,327,332
Receivables:
Investment securities sold		62,797		1,953,676		44,594		566,469		13,970		352,075		62,714		444,368		619,867		262,781
Sub-account units sold		74,149		188,125		34,702		601,941		22,403		219,841		115,290		541,917		655,172		180,888
Total assets		325,816,538		149,417,967		66,486,146		797,370,887		41,380,536		206,445,730		54,156,704		464,956,677		893,307,495		158,771,001

Liabilities
Payables:
Investment securities purchased		74,149		188,125		34,702		601,941		22,403		219,841		115,290		541,917		655,172		180,888
Sub-account units redeemed		48,590		1,947,110		41,723		531,434		12,267		343,161		60,417		424,369		582,290		255,936
Insurance fees due to Jackson		14,207		6,566		2,871		35,035		1,703		8,914		2,297		19,999		37,577		6,845
Total liabilities		136,946		2,141,801		79,296		1,168,410		36,373		571,916		178,004		986,285		1,275,039		443,669
Net assets (Note 7)	$	325,679,592	$	147,276,166	$	66,406,850	$	796,202,477	$	41,344,163	$	205,873,814	$	53,978,700	$	463,970,392	$	892,032,456	$	158,327,332

(a) Investment shares		41,487,846		12,620,066		12,184,743		29,026,704		3,480,148		22,256,629		5,092,330		36,247,687		85,117,601		15,944,344
Investments at cost	$	372,226,490	$	140,270,019	$	90,581,291	$	768,525,017	$	42,077,456	$	254,142,619	$	50,320,200	$	461,736,229	$	844,399,652	$	156,665,019

See notes to the financial statements.

Page 7

Jackson National Separate Account I

Statements of Assets and Liabilities

December 31, 2011

	JNL/MCM Select Small-Cap Portfolio		JNL/MCM Small Cap Index Portfolio		JNL/MCM Technology Sector Portfolio		JNL/MCM Value Line 30 Portfolio		JNL/MCM VIP Portfolio		Oppenheimer Global Growth Portfolio		JNL/PAM Asia ex-Japan Portfolio		JNL/PAM China-India Portfolio		JNL/PIMCO Real Return Portfolio		JNL/PIMCO Total Return Bond Portfolio
Assets
Investments, at value (a)	$	239,194,860	$	411,164,252	$	313,873,224	$	366,235,557	$	244,473,860	$	284,665,622	$	100,654,513	$	272,733,798	$	1,526,238,655	$	2,980,926,848
Receivables:
Investment securities sold		376,966		410,110		1,069,827		166,119		78,475		122,825		73,897		173,721		604,967		3,563,837
Sub-account units sold		278,048		256,355		146,731		172,983		50,283		492,470		85,597		353,613		2,478,220		3,999,882
Total assets		239,849,874		411,830,717		315,089,782		366,574,659		244,602,618		285,280,917		100,814,007		273,261,132		1,529,321,842		2,988,490,567

Liabilities
Payables:
Investment securities purchased		278,048		256,355		146,731		172,983		50,283		492,470		85,597		353,613		2,478,220		3,999,882
Sub-account units redeemed		366,615		392,459		1,056,267		149,744		67,819		110,874		69,586		162,194		538,859		3,436,540
Insurance fees due to Jackson		10,351		17,651		13,560		16,375		10,656		11,951		4,311		11,527		66,108		127,297
Total liabilities		655,014		666,465		1,216,558		339,102		128,758		615,295		159,494		527,334		3,083,187		7,563,719
Net assets (Note 7)	$	239,194,860	$	411,164,252	$	313,873,224	$	366,235,557	$	244,473,860	$	284,665,622	$	100,654,513	$	272,733,798	$	1,526,238,655	$	2,980,926,848

(a) Investment shares		21,510,329		35,567,842		44,647,685		36,189,284		36,929,586		29,807,919		14,277,236		45,304,618		118,958,586		237,334,940
Investments at cost	$	295,108,286	$	396,333,569	$	300,707,405	$	475,994,922	$	293,163,344	$	304,395,787	$	118,728,884	$	350,116,619	$	1,471,660,858	$	2,983,943,122

See notes to the financial statements.

Page 8

Jackson National Separate Account I

Statements of Assets and Liabilities

December 31, 2011

	JNL/PPM America Floating Rate Income Portfolio		JNL/ PPM America High Yield Bond Portfolio		JNL/ PPM America Mid Cap Value Portfolio		JNL/ PPM America Small Cap Value Portfolio		JNL/ PPM America Value Equity Portfolio		JNL/ Red Rocks Listed Private Equity Portfolio		JNL/S&P 4 Portfolio		JNL/S&P Competitive Advantage Portfolio		JNL/S&P Dividend Income & Growth Portfolio		JNL/S&P Intrinsic Value Portfolio
Assets
Investments, at value (a)	$	129,210,316	$	870,828,267	$	87,885,858	$	65,195,273	$	97,153,573	$	308,656,825	$	956,114,424	$	153,398,260	$	529,068,741	$	197,439,929
Receivables:
Investment securities sold		158,512		334,824		248,575		27,648		69,341		114,969		147,599		811,192		101,352		725,622
Sub-account units sold		164,288		3,317,596		159,527		176,286		32,305		164,762		330,478		1,152,883		5,063,262		357,960
Total assets		129,533,116		874,480,687		88,293,960		65,399,207		97,255,219		308,936,556		956,592,501		155,362,335		534,233,355		198,523,511

Liabilities
Payables:
Investment securities purchased		164,288		3,317,596		159,527		176,286		32,305		164,762		330,478		1,152,883		5,063,262		357,960
Sub-account units redeemed		152,838		297,138		244,748		24,811		65,287		102,024		106,655		804,710		79,071		717,068
Insurance fees due to Jackson		5,674		37,686		3,827		2,837		4,054		12,945		40,944		6,482		22,281		8,554
Total liabilities		322,800		3,652,420		408,102		203,934		101,646		279,731		478,077		1,964,075		5,164,614		1,083,582
Net assets (Note 7)	$	129,210,316	$	870,828,267	$	87,885,858	$	65,195,273	$	97,153,573	$	308,656,825	$	956,114,424	$	153,398,260	$	529,068,741	$	197,439,929

(a) Investment shares		12,831,213		133,767,783		8,986,284		7,752,113		8,552,251		42,573,355		87,556,266		14,008,973		49,445,677		19,943,427
Investments at cost	$	128,482,646	$	885,641,651	$	91,222,298	$	73,767,162	$	100,476,107	$	392,251,238	$	847,077,375	$	147,118,182	$	489,919,551	$	205,552,635

See notes to the financial statements.

Page 9

Jackson National Separate Account I

Statements of Assets and Liabilities

December 31, 2011

	JNL/ S&P Managed Aggressive Growth Portfolio		JNL/ S&P Managed Conservative Portfolio		JNL/ S&P Managed Growth Portfolio		JNL/ S&P Managed Moderate Portfolio		JNL/ S&P Managed Moderate Growth Portfolio		JNL/S&P Total Yield Portfolio		JNL/T. Rowe Price Established Growth Portfolio		JNL/T. Rowe Price Mid-Cap Growth Portfolio		JNL/T. Rowe Price Short-Term Bond Portfolio		JNL/T. Rowe Price Value Portfolio
Assets
Investments, at value (a)	$	748,866,350	$	1,187,613,643	$	2,273,055,809	$	1,942,414,122	$	3,240,548,028	$	80,014,712	$	901,594,022	$	1,176,490,950	$	493,476,706	$	431,971,301
Receivables:
Investment securities sold		137,086		359,211		1,385,114		3,968,090		804,626		252,610		538,289		2,830,144		346,520		262,990
Sub-account units sold		351,639		1,467,910		1,077,763		1,884,909		5,609,445		191,050		862,717		572,082		695,780		439,430
Total assets		749,355,075		1,189,440,764		2,275,518,686		1,948,267,121		3,246,962,099		80,458,372		902,995,028		1,179,893,176		494,519,006		432,673,721

Liabilities
Payables:
Investment securities purchased		351,639		1,467,910		1,077,763		1,884,909		5,609,445		191,050		862,717		572,082		695,780		439,430
Sub-account units redeemed		106,477		308,155		1,291,721		3,886,363		670,241		249,139		501,001		2,780,945		325,291		244,645
Insurance fees due to Jackson		30,609		51,056		93,393		81,727		134,385		3,471		37,288		49,199		21,229		18,345
Total liabilities		488,725		1,827,121		2,462,877		5,852,999		6,414,071		443,660		1,401,006		3,402,226		1,042,300		702,420
Net assets (Note 7)	$	748,866,350	$	1,187,613,643	$	2,273,055,809	$	1,942,414,122	$	3,240,548,028	$	80,014,712	$	901,594,022	$	1,176,490,950	$	493,476,706	$	431,971,301

(a) Investment shares		65,062,237		108,358,909		212,435,122		173,740,083		287,537,536		9,239,574		42,994,469		43,800,854		49,795,833		41,258,004
Investments at cost	$	744,203,550	$	1,181,169,006	$	2,269,116,322	$	1,916,232,749	$	3,251,816,450	$	84,879,999	$	835,866,622	$	1,186,425,527	$	495,739,509	$	435,924,135

See notes to the financial statements.

Page 10

Jackson National Separate Account I

Statements of Assets and Liabilities

December 31, 2011

	JNL/WMC Balanced Portfolio		JNL/WMC Money Market Portfolio		JNL/WMC Value Portfolio
Assets
Investments, at value (a)	$	1,709,810,948	$	1,010,792,969	$	362,133,240
Receivables:
Investment securities sold		828,406		3,201,261		546,716
Sub-account units sold		2,343,205		4,323,894		235,491
Total assets		1,712,982,559		1,018,318,124		362,915,447

Liabilities
Payables:
Investment securities purchased		2,343,205		4,323,894		235,491
Sub-account units redeemed		759,621		3,157,041		531,647
Insurance fees due to Jackson		68,785		44,220		15,069
Total liabilities		3,171,611		7,525,155		782,207
Net assets (Note 7)	$	1,709,810,948	$	1,010,792,969	$	362,133,240

(a) Investment shares		101,713,917		1,010,792,969		21,517,127
Investments at cost	$	1,610,971,478	$	1,010,792,969	$	349,523,742

See notes to the financial statements.

Page 11

Jackson National Separate Account I

Statements of Operations

For the Year Ended December 31, 2011

	JNL Disciplined Growth Portfolio			JNL Disciplined Moderate Portfolio			JNL Disciplined Moderate Growth Portfolio			JNL Institutional Alt 20 Portfolio			JNL Institutional Alt 35 Portfolio			JNL Institutional Alt 50 Portfolio			JNL Institutional Alt 65 Portfolio			JNL/American Funds Blue Chip Income and Growth Portfolio			JNL/American Funds Global Bond Portfolio			JNL/American Funds Global Small Capitalization Portfolio
Investment income
Dividends	$	1,658,519		$	5,130,430		$	4,723,200		$	7,496,251		$	10,201,017		$	12,399,370		$	6,728,661		$	1,782,353		$	2,258,184		$	391,238

Expenses
Insurance charges (Note 3)		2,278,553			5,781,851			6,223,762			10,769,361			17,031,628			21,487,170			14,132,226			3,915,074			3,369,764			1,583,115
Total expenses		2,278,553			5,781,851			6,223,762			10,769,361			17,031,628			21,487,170			14,132,226			3,915,074			3,369,764			1,583,115
Net investment income (loss)		(620,034	)		(651,421	)		(1,500,562	)		(3,273,110	)		(6,830,611	)		(9,087,800	)		(7,403,565	)		(2,132,721	)		(1,111,580	)		(1,191,877	)

Realized and unrealized gain (loss)
Net realized gain (loss) on:
Distributions from investment companies		-			-			-			704,467			1,421,202			2,146,459			2,581,075			498			142,445			63,183
Investments		3,572,468			5,386,294			6,125,351			8,135,383			13,141,893			18,388,440			13,518,465			504,405			2,303,332			(159,191	)
Net change in unrealized appreciation
(depreciation) on investments		(11,794,460	)		(9,394,309	)		(17,535,212	)		(41,964,351	)		(82,671,160	)		(116,292,737	)		(91,624,919	)		(7,738,861	)		571,000			(25,548,658	)
Net realized and unrealized gain (loss)		(8,221,992	)		(4,008,015	)		(11,409,861	)		(33,124,501	)		(68,108,065	)		(95,757,838	)		(75,525,379	)		(7,233,958	)		3,016,777			(25,644,666	)

Net increase (decrease) in net assets
from operations	$	(8,842,026	)	$	(4,659,436	)	$	(12,910,423	)	$	(36,397,611	)	$	(74,938,676	)	$	(104,845,638	)	$	(82,928,944	)	$	(9,366,679	)	$	1,905,197		$	(26,836,543	)

See notes to the financial statements.

Page 12

Jackson National Separate Account I

Statements of Operations

For the Year Ended December 31, 2011

	JNL/American Funds Growth-Income Portfolio			JNL/American Funds International Portfolio			JNL/American Funds New World Portfolio			JNL/BlackRock Commodity Securities Portfolio			JNL/BlackRock Global Allocation Portfolio			JNL/Brookfield Global Infrastructure Portfolio(a)			JNL/Capital Guardian Global Balanced Portfolio			JNL/Capital Guardian Global Diversified Research Portfolio			JNL/Capital Guardian U.S. Growth Equity Portfolio			JNL/Eagle Core Equity Portfolio
Investment income
Dividends	$	1,617,396		$	1,169,617		$	1,206,899		$	4,668,057		$	2,002,429		$	-		$	3,832,728		$	2,808,820		$	1,385,812		$	696,814

Expenses
Insurance charges (Note 3)		4,519,234			2,354,325			2,989,515			12,639,466			4,485,944			399			5,389,183			4,529,123			6,089,668			1,873,577
Total expenses		4,519,234			2,354,325			2,989,515			12,639,466			4,485,944			399			5,389,183			4,529,123			6,089,668			1,873,577
Net investment income (loss)		(2,901,838	)		(1,184,708	)		(1,782,616	)		(7,971,409	)		(2,483,515	)		(399	)		(1,556,455	)		(1,720,303	)		(4,703,856	)		(1,176,763	)

Realized and unrealized gain (loss)
Net realized gain (loss) on:
Distributions from investment companies		-			118,141			-			-			4,547			-			-			-			-			-
Investments		1,049,178			(731,588	)		(1,020,217	)		25,601,623			245,072			289			1,396,155			5,719,008			12,763,201			535,049
Net change in unrealized appreciation
(depreciation) on investments		(13,642,326	)		(30,346,697	)		(33,970,481	)		(104,708,374	)		(12,017,840	)		22,169			(23,051,421	)		(22,846,681	)		(11,885,971	)		(3,153,413	)
Net realized and unrealized gain (loss)		(12,593,148	)		(30,960,144	)		(34,990,698	)		(79,106,751	)		(11,768,221	)		22,458			(21,655,266	)		(17,127,673	)		877,230			(2,618,364	)

Net increase (decrease) in net assets
from operations	$	(15,494,986	)	$	(32,144,852	)	$	(36,773,314	)	$	(87,078,160	)	$	(14,251,736	)	$	22,059		$	(23,211,721	)	$	(18,847,976	)	$	(3,826,626	)	$	(3,795,127	)

(a) Commencement of operations December 12, 2011.

See notes to the financial statements.

Page 13

Jackson National Separate Account I

Statements of Operations

For the Year Ended December 31, 2011

	JNL/Eagle SmallCap Equity Portfolio			JNL/Franklin Templeton Founding Strategy Portfolio			JNL/Franklin Templeton Global Growth Portfolio			JNL/Franklin Templeton Global Multisector Bond Portfolio(a)			JNL/Franklin Templeton Income Portfolio			JNL/Franklin Templeton Inter-national Small Cap Growth Portfolio			JNL/Franklin Templeton Mutual Shares Portfolio			JNL/Franklin Templeton Small Cap Value Portfolio			JNL/ Goldman Sachs Core Plus Bond Portfolio			JNL/Goldman Sachs Emerging Markets Debt Portfolio
Investment income
Dividends	$	-		$	14,848,036		$	1,364,228		$	-		$	32,488,367		$	2,407,793		$	7,321,869		$	699,685		$	10,670,410		$	17,249,119

Expenses
Insurance charges (Note 3)		8,683,707			15,964,049			2,160,857			1,417			11,756,283			2,428,900			4,236,743			3,867,439			7,790,653			5,779,872
Total expenses		8,683,707			15,964,049			2,160,857			1,417			11,756,283			2,428,900			4,236,743			3,867,439			7,790,653			5,779,872
Net investment income (loss)		(8,683,707	)		(1,116,013	)		(796,629	)		(1,417	)		20,732,084			(21,107	)		3,085,126			(3,167,754	)		2,879,757			11,469,247

Realized and unrealized gain (loss)
Net realized gain (loss) on:
Distributions from investment companies		34,918,191			-			-			-			-			-			-			-			19,186,832			8,436,835
Investments		27,995,004			4,483,644			1,063,103			30			11,492,218			5,435,099			3,293,661			9,212,655			7,390,716			12,014,937
Net change in unrealized appreciation
(depreciation) on investments		(82,870,232	)		(35,103,309	)		(13,647,319	)		6,268			(27,336,572	)		(32,633,737	)		(14,641,324	)		(21,295,070	)		(7,471,550	)		(58,162,357	)
Net realized and unrealized gain (loss)		(19,957,037	)		(30,619,665	)		(12,584,216	)		6,298			(15,844,354	)		(27,198,638	)		(11,347,663	)		(12,082,415	)		19,105,998			(37,710,585	)

Net increase (decrease) in net assets
from operations	$	(28,640,744	)	$	(31,735,678	)	$	(13,380,845	)	$	4,881		$	4,887,730		$	(27,219,745	)	$	(8,262,537	)	$	(15,250,169	)	$	21,985,755		$	(26,241,338	)

(a) Commencement of operations December 12, 2011.

See notes to the financial statements.

Page 14

Jackson National Separate Account I

Statements of Operations

For the Year Ended December 31, 2011

	JNL/ Goldman Sachs Mid Cap Value Portfolio			JNL/Goldman Sachs U.S. Equity Flex Portfolio			JNL/Invesco Global Real Estate Portfolio			JNL/Invesco International Growth Portfolio			JNL/Invesco Large Cap Growth Portfolio			JNL/Invesco Small Cap Growth Portfolio			JNL/Ivy Asset Strategy Portfolio			JNL/JPMorgan International Value Portfolio			JNL/JPMorgan MidCap Growth Portfolio			JNL/JPMorgan U.S. Government & Quality Bond Portfolio
Investment income
Dividends	$	1,739,341		$	118,923		$	11,148,955		$	2,034,481		$	480,360		$	-		$	1,728,419		$	8,288,977		$	-		$	15,359,238

Expenses
Insurance charges (Note 3)		4,267,943			1,552,662			6,229,241			4,436,389			4,863,849			2,873,049			18,109,317			4,753,158			3,133,400			8,493,079
Total expenses		4,267,943			1,552,662			6,229,241			4,436,389			4,863,849			2,873,049			18,109,317			4,753,158			3,133,400			8,493,079
Net investment income (loss)		(2,528,602	)		(1,433,739	)		4,919,714			(2,401,908	)		(4,383,489	)		(2,873,049	)		(16,380,898	)		3,535,819			(3,133,400	)		6,866,159

Realized and unrealized gain (loss)
Net realized gain (loss) on:
Distributions from investment companies		8,119,586			-			-			-			-			481,040			-			-			-			-
Investments		6,950,259			2,439,616			369,017			2,949,454			10,537,363			8,413,299			6,815,912			(15,001,637	)		8,229,209			13,283,320
Net change in unrealized appreciation
(depreciation) on investments		(38,018,459	)		(13,894,641	)		(42,497,046	)		(26,745,659	)		(34,207,428	)		(19,998,073	)		(132,792,229	)		(35,245,478	)		(27,720,347	)		18,928,528
Net realized and unrealized gain (loss)		(22,948,614	)		(11,455,025	)		(42,128,029	)		(23,796,205	)		(23,670,065	)		(11,103,734	)		(125,976,317	)		(50,247,115	)		(19,491,138	)		32,211,848

Net increase (decrease) in net assets
from operations	$	(25,477,216	)	$	(12,888,764	)	$	(37,208,315	)	$	(26,198,113	)	$	(28,053,554	)	$	(13,976,783	)	$	(142,357,215	)	$	(46,711,296	)	$	(22,624,538	)	$	39,078,007

See notes to the financial statements.

Page 15

Jackson National Separate Account I

Statements of Operations

For the Year Ended December 31, 2011

	JNL/Lazard Emerging Markets Portfolio			JNL/Lazard Mid Cap Equity Portfolio			JNL/M&G Global Basics Portfolio			JNL/M&G Global Leaders Portfolio			JNL/MCM 10 x 10 Portfolio			JNL/MCM 25 Portfolio		JNL/MCM Bond Index Portfolio		JNL/MCM Communications Sector Portfolio			JNL/MCM Consumer Brands Sector Portfolio			JNL/MCM Dow 10 Portfolio
Investment income
Dividends	$	8,958,627		$	1,359,345		$	103,249		$	206,298		$	3,616,086		$	12,691,280	$	16,060,420	$	1,538,122		$	458,362		$	-

Expenses
Insurance charges (Note 3)		13,835,987			3,150,504			809,540			432,171			3,667,643			7,768,819		8,618,745		921,254			1,275,902			6,182,921
Total expenses		13,835,987			3,150,504			809,540			432,171			3,667,643			7,768,819		8,618,745		921,254			1,275,902			6,182,921
Net investment income (loss)		(4,877,360	)		(1,791,159	)		(706,291	)		(225,873	)		(51,557	)		4,922,461		7,441,675		616,868			(817,540	)		(6,182,921	)

Realized and unrealized gain (loss)
Net realized gain (loss) on:
Distributions from investment companies		-			-			101,510			1,829,774			-			-		5,416,860		-			-			-
Investments		29,070,786			3,527,274			1,612,018			100,237			4,155,388			26,519,660		9,640,742		1,517,614			5,872,911			14,856,051
Net change in unrealized appreciation
(depreciation) on investments		(214,681,740	)		(17,024,421	)		(9,381,582	)		(6,157,657	)		(13,212,735	)		2,173,778		6,271,641		(5,752,979	)		(1,726,478	)		51,904,589
Net realized and unrealized gain (loss)		(185,610,954	)		(13,497,147	)		(7,668,054	)		(4,227,646	)		(9,057,347	)		28,693,438		21,329,243		(4,235,365	)		4,146,433			66,760,640

Net increase (decrease) in net assets
from operations	$	(190,488,314	)	$	(15,288,306	)	$	(8,374,345	)	$	(4,453,519	)	$	(9,108,904	)	$	33,615,899	$	28,770,918	$	(3,618,497	)	$	3,328,893		$	60,577,719

See notes to the financial statements.

Page 16

Jackson National Separate Account I

Statements of Operations

For the Year Ended December 31, 2011

	JNL/MCM Dow Dividend Portfolio			JNL/MCM Emerging Markets Index Portfolio(a)			JNL/MCM European 30 Portfolio			JNL/MCM Financial Sector Portfolio			JNL/MCM Global 15 Portfolio			JNL/MCM Global Alpha Portfolio			JNL/MCM Healthcare Sector Portfolio			JNL/MCM Index 5 Portfolio			JNL/MCM International Index Portfolio			JNL/MCM JNL 5 Portfolio
Investment income
Dividends	$	8,128,178		$	-		$	427,191		$	1,296,276		$	-		$	390,934		$	1,996,009		$	3,704,134		$	12,012,078		$	90,895,711

Expenses
Insurance charges (Note 3)		4,154,735			1,166			336,415			2,627,207			7,492,783			787,057			3,384,152			5,300,176			7,252,821			46,333,107
Total expenses		4,154,735			1,166			336,415			2,627,207			7,492,783			787,057			3,384,152			5,300,176			7,252,821			46,333,107
Net investment income (loss)		3,973,443			(1,166	)		90,776			(1,330,931	)		(7,492,783	)		(396,123	)		(1,388,143	)		(1,596,042	)		4,759,257			44,562,604

Realized and unrealized gain (loss)
Net realized gain (loss) on:
Distributions from investment companies		-			-			1,040,763			-			-			559,070			-			748,406			-			-
Investments		(11,680,581	)		21			162,311			223,188			9,648,569			807,688			2,980,516			7,769,409			(3,967,210	)		(125,700,271	)
Net change in unrealized appreciation
(depreciation) on investments		19,155,724			17,296			(3,887,517	)		(23,832,451	)		(46,590,424	)		(399,766	)		9,701,112			(22,384,803	)		(65,558,379	)		(25,127,135	)
Net realized and unrealized gain (loss)		7,475,143			17,317			(2,684,443	)		(23,609,263	)		(36,941,855	)		966,992			12,681,628			(13,866,988	)		(69,525,589	)		(150,827,406	)

Net increase (decrease) in net assets
from operations	$	11,448,586		$	16,151		$	(2,593,667	)	$	(24,940,194	)	$	(44,434,638	)	$	570,869		$	11,293,485		$	(15,463,030	)	$	(64,766,332	)	$	(106,264,802	)

(a) Commencement of operations August 29, 2011.

See notes to the financial statements.

Page 17

Jackson National Separate Account I

Statements of Operations

For the Year Ended December 31, 2011

	JNL/MCM JNL Optimized 5 Portfolio			JNL/MCM Nasdaq 25 Portfolio			JNL/MCM NYSE International 25 Portfolio			JNL/MCM Oil & Gas Sector Portfolio			JNL/MCM Pacific Rim 30 Portfolio			JNL/MCM S&P 10 Portfolio			JNL/MCM S&P 24 Portfolio			JNL/MCM S&P 400 MidCap Index Portfolio			JNL/MCM S&P 500 Index Portfolio			JNL/MCM S&P SMid 60 Portfolio
Investment income
Dividends	$	6,882,673		$	752,452		$	1,933,775		$	5,928,948		$	570,448		$	-		$	254,749		$	3,075,302		$	15,630,541		$	1,127,721

Expenses
Insurance charges (Note 3)		6,039,675			2,100,924			1,570,566			12,534,833			571,920			3,949,222			793,585			7,796,127			13,251,112			2,521,386
Total expenses		6,039,675			2,100,924			1,570,566			12,534,833			571,920			3,949,222			793,585			7,796,127			13,251,112			2,521,386
Net investment income (loss)		842,998			(1,348,472	)		363,209			(6,605,885	)		(1,472	)		(3,949,222	)		(538,836	)		(4,720,825	)		2,379,429			(1,393,665	)

Realized and unrealized gain (loss)
Net realized gain (loss) on:
Distributions from investment companies		-			-			-			-			1,351,614			-			-			21,935,844			6,244,594			6,502,999
Investments		(3,579,929	)		8,483,162			(5,822,493	)		24,526,751			1,064,164			(15,214,404	)		2,854,089			23,607,911			31,520,043			10,766,000
Net change in unrealized appreciation
(depreciation) on investments		(39,484,234	)		(8,655,479	)		(21,031,088	)		(28,296,063	)		(3,767,774	)		(25,669,504	)		(2,832,652	)		(63,720,094	)		(42,818,485	)		(32,508,098	)
Net realized and unrealized gain (loss)		(43,064,163	)		(172,317	)		(26,853,581	)		(3,769,312	)		(1,351,996	)		(40,883,908	)		21,437			(18,176,339	)		(5,053,848	)		(15,239,099	)
Net increase (decrease) in net assets
from operations	$	(42,221,165	)	$	(1,520,789	)	$	(26,490,372	)	$	(10,375,197	)	$	(1,353,468	)	$	(44,833,130	)	$	(517,399	)	$	(22,897,164	)	$	(2,674,419	)	$	(16,632,764	)

See notes to the financial statements.

Page 18

Jackson National Separate Account I

Statements of Operations

For the Year Ended December 31, 2011

	JNL/MCM Select Small-Cap Portfolio			JNL/MCM Small Cap Index Portfolio			JNL/MCM Technology Sector Portfolio			JNL/MCM Value Line 30 Portfolio			JNL/MCM VIP Portfolio			Oppenheimer Global Growth Portfolio			JNL/PAM Asia ex-Japan Portfolio			JNL/PAM China-India Portfolio			JNL/PIMCO Real Return Portfolio			JNL/PIMCO Total Return Bond Portfolio
Investment income
Dividends	$	2,581,150		$	3,323,974		$	614,471		$	-		$	3,516,373		$	1,762,427		$	505,676		$	1,089,048		$	11,756,917		$	84,996,665

Expenses
Insurance charges (Note 3)		4,130,968			6,861,654			4,891,408			7,745,507			4,303,825			4,372,293			1,922,950			5,004,843			18,800,774			41,525,125
Total expenses		4,130,968			6,861,654			4,891,408			7,745,507			4,303,825			4,372,293			1,922,950			5,004,843			18,800,774			41,525,125
Net investment income (loss)		(1,549,818	)		(3,537,680	)		(4,276,937	)		(7,745,507	)		(787,452	)		(2,609,866	)		(1,417,274	)		(3,915,795	)		(7,043,857	)		43,471,540

Realized and unrealized gain (loss)
Net realized gain (loss) on:
Distributions from investment companies		-			13,663,454			6,895,799			-			-			-			7,883,223			17,680,768			59,195,901			3,605,515
Investments		(23,580,986	)		23,665,312			18,492,668			(14,998,903	)		(11,812,723	)		221,224			5,644,409			5,153,951			28,391,246			10,266,023
Net change in unrealized appreciation
(depreciation) on investments		25,106,161			(61,192,565	)		(30,635,866	)		(96,327,138	)		(1,275,734	)		(29,553,222	)		(42,633,423	)		(125,975,949	)		26,056,046			21,250,622
Net realized and unrealized gain (loss)		1,525,175			(23,863,799	)		(5,247,399	)		(111,326,041	)		(13,088,457	)		(29,331,998	)		(29,105,791	)		(103,141,230	)		113,643,193			35,122,160

Net increase (decrease) in net assets
from operations	$	(24,643	)	$	(27,401,479	)	$	(9,524,336	)	$	(119,071,548	)	$	(13,875,909	)	$	(31,941,864	)	$	(30,523,065	)	$	(107,057,025	)	$	106,599,336		$	78,593,700

See notes to the financial statements.

Page 19

Jackson National Separate Account I

Statements of Operations

For the Year Ended December 31, 2011

	JNL/PPM America Floating Rate Income Portfolio			JNL/ PPM America High Yield Bond Portfolio			JNL/ PPM America Mid Cap Value Portfolio			JNL/ PPM America Small Cap Value Portfolio			JNL/ PPM America Value Equity Portfolio			JNL/ Red Rocks Listed Private Equity Portfolio			JNL/S&P 4 Portfolio			JNL/S&P Competitive Advantage Portfolio			JNL/S&P Dividend Income & Growth Portfolio		JNL/S&P Intrinsic Value Portfolio
Investment income
Dividends	$	-		$	56,518,488		$	106,613		$	134,269		$	1,232,654		$	32,260,260		$	43,069,610		$	1,025,286		$	5,985,080	$	1,482,691

Expenses
Insurance charges (Note 3)		892,220			12,836,600			1,683,920			1,119,209			1,677,114			5,765,276			13,630,189			1,564,851			5,006,165		2,420,621
Total expenses		892,220			12,836,600			1,683,920			1,119,209			1,677,114			5,765,276			13,630,189			1,564,851			5,006,165		2,420,621
Net investment income (loss)		(892,220	)		43,681,888			(1,577,307	)		(984,940	)		(444,460	)		26,494,984			29,439,421			(539,565	)		978,915		(937,930	)

Realized and unrealized gain (loss)
Net realized gain (loss) on:
Distributions from investment companies		-			-			923,926			5,485,478			-			7,439,634			3,984,343			9,059,477			6,056,922		11,698,766
Investments		(979,323	)		33,871,368			2,229,083			(213,540	)		159,361			11,964,825			43,715,323			6,070,286			11,289,252		3,042,753
Net change in unrealized appreciation
(depreciation) on investments		727,670			(53,312,026	)		(15,500,672	)		(14,059,198	)		(9,035,759	)		(136,194,950	)		(43,842,978	)		(5,095,398	)		18,982,334		(13,625,913	)
Net realized and unrealized gain (loss)		(251,653	)		(19,440,658	)		(12,347,663	)		(8,787,260	)		(8,876,398	)		(116,790,491	)		3,856,688			10,034,365			36,328,508		1,115,606

Net increase (decrease) in net assets
from operations	$	(1,143,873	)	$	24,241,230		$	(13,924,970	)	$	(9,772,200	)	$	(9,320,858	)	$	(90,295,507	)	$	33,296,109		$	9,494,800		$	37,307,423	$	177,676

See notes to the financial statements.

Page 20

Jackson National Separate Account I

Statements of Operations

For the Year Ended December 31, 2011

	JNL/ S&P Managed Aggressive Growth Portfolio			JNL/ S&P Managed Conservative Portfolio			JNL/ S&P Managed Growth Portfolio			JNL/ S&P Managed Moderate Portfolio			JNL/ S&P Managed Moderate Growth Portfolio			JNL/S&P Total Yield Portfolio			JNL/T. Rowe Price Established Growth Portfolio			JNL/T. Rowe Price Mid-Cap Growth Portfolio			JNL/T. Rowe Price Short-Term Bond Portfolio			JNL/T. Rowe Price Value Portfolio
Investment income
Dividends	$	4,952,400		$	24,434,418		$	15,937,598		$	34,811,982		$	49,765,809		$	868,956		$	-		$	184,087		$	5,154,085		$	5,910,451

Expenses
Insurance charges (Note 3)		11,288,518			16,091,091			32,893,514			27,153,076			46,143,921			1,121,971			13,238,389			17,474,671			6,327,784			6,722,841
Total expenses		11,288,518			16,091,091			32,893,514			27,153,076			46,143,921			1,121,971			13,238,389			17,474,671			6,327,784			6,722,841
Net investment income (loss)		(6,336,118	)		8,343,327			(16,955,916	)		7,658,906			3,621,888			(253,015	)		(13,238,389	)		(17,290,584	)		(1,173,699	)		(812,390	)

Realized and unrealized gain (loss)
Net realized gain (loss) on:
Distributions from investment companies		-			15,567,055			11,156,256			16,854,176			55,870,650			4,014,520			-			98,678,675			-			-
Investments		13,311,715			13,410,232			22,739,508			18,335,298			31,187,273			1,320,634			27,711,857			41,678,939			1,010,047			3,102,219
Net change in unrealized appreciation
(depreciation) on investments		(60,089,470	)		(23,254,846	)		(131,808,284	)		(61,564,342	)		(189,817,685	)		(9,552,230	)		(44,647,287	)		(171,994,360	)		(1,372,538	)		(20,409,752	)
Net realized and unrealized gain (loss)		(46,777,755	)		5,722,441			(97,912,520	)		(26,374,868	)		(102,759,762	)		(4,217,076	)		(16,935,430	)		(31,636,746	)		(362,491	)		(17,307,533	)

Net increase (decrease) in net assets
from operations	$	(53,113,873	)	$	14,065,768		$	(114,868,436	)	$	(18,715,962	)	$	(99,137,874	)	$	(4,470,091	)	$	(30,173,819	)	$	(48,927,330	)	$	(1,536,190	)	$	(18,119,923	)

See notes to the financial statements.

Page 21

Jackson National Separate Account I

Statements of Operations

For the Year Ended December 31, 2011

	JNL/WMC			JNL/WMC			JNL/WMC
	Balanced			Money Market			Value
	Portfolio			Portfolio			Portfolio
Investment income
Dividends	$	17,453,370		$	27,511		$	3,766,950

Expenses
Insurance charges (Note 3)		21,780,281			13,910,932			5,587,477
Total expenses		21,780,281			13,910,932			5,587,477
Net investment income (loss)		(4,326,911	)		(13,883,421	)		(1,820,527	)

Realized and unrealized gain (loss)
Net realized gain (loss) on:
Distributions from investment companies		-			8,225			-
Investments		18,280,982			-			7,716,798
Net change in unrealized appreciation
(depreciation) on investments		8,658,030			-			(19,747,706	)
Net realized and unrealized gain (loss)		26,939,012			8,225			(12,030,908	)

Net increase (decrease) in net assets
from operations	$	22,612,101		$	(13,875,196	)	$	(13,851,435	)

See notes to the financial statements.

Page 22

Jackson National Separate Account I

Statements of Changes in Net Assets

For the Year Ended December 31, 2011

	JNL Disciplined Growth Portfolio			JNL Disciplined Moderate Portfolio			JNL Disciplined Moderate Growth Portfolio			JNL Institutional Alt 20 Portfolio			JNL Institutional Alt 35 Portfolio			JNL Institutional Alt 50 Portfolio			JNL Institutional Alt 65 Portfolio			JNL/American Funds Blue Chip Income and Growth Portfolio			JNL/American Funds Global Bond Portfolio			JNL/American Funds Global Small Capitalization Portfolio
Operations
Net investment income (loss)	$	(620,034	)	$	(651,421	)	$	(1,500,562	)	$	(3,273,110	)	$	(6,830,611	)	$	(9,087,800	)	$	(7,403,565	)	$	(2,132,721	)	$	(1,111,580	)	$	(1,191,877	)
Net realized gain (loss) on investments		3,572,468			5,386,294			6,125,351			8,839,850			14,563,095			20,534,899			16,099,540			504,903			2,445,777			(96,008	)
Net change in unrealized appreciation
(depreciation) on investments		(11,794,460	)		(9,394,309	)		(17,535,212	)		(41,964,351	)		(82,671,160	)		(116,292,737	)		(91,624,919	)		(7,738,861	)		571,000			(25,548,658	)
Net increase (decrease) in net assets
from operations		(8,842,026	)		(4,659,436	)		(12,910,423	)		(36,397,611	)		(74,938,676	)		(104,845,638	)		(82,928,944	)		(9,366,679	)		1,905,197			(26,836,543	)

Contract transactions 1
Purchase payments (Note 4)		59,296,889			112,373,938			147,223,826			292,273,273			498,116,382			700,054,602			322,886,987			206,652,463			128,704,968			71,703,643
Surrenders and terminations		(5,489,782	)		(18,019,897	)		(17,265,925	)		(23,419,243	)		(31,718,489	)		(43,179,291	)		(29,827,829	)		(8,766,715	)		(9,760,057	)		(3,871,959	)
Transfers between portfolios		(3,323,022	)		18,456,006			10,194,085			55,844,885			103,306,241			176,445,206			55,772,290			54,651,900			104,632,751			6,979,688
Net annuitization transactions		-			(148,034	)		(4,064	)		(57,937	)		(140,189	)		(165,712	)		(12,540	)		-			(38,917	)		(9,323	)
Policyholder charges (Note 3)		(1,457,889	)		(3,549,089	)		(4,234,444	)		(8,291,235	)		(12,008,235	)		(14,472,429	)		(9,335,527	)		(2,802,789	)		(1,971,391	)		(1,053,589	)
Net increase (decrease) in net assets
from contract transactions		49,026,196			109,112,924			135,913,478			316,349,743			557,555,710			818,682,376			339,483,381			249,734,859			221,567,354			73,748,460

Net increase (decrease) in net assets		40,184,170			104,453,488			123,003,055			279,952,132			482,617,034			713,836,738			256,554,437			240,368,180			223,472,551			46,911,917

Net assets beginning of period		128,515,931			322,588,300			350,989,460			591,939,573			866,695,998			1,045,301,753			686,358,529			139,612,327			99,514,336			74,487,499

Net assets end of period	$	168,700,101		$	427,041,788		$	473,992,515		$	871,891,705		$	1,349,313,032		$	1,759,138,491		$	942,912,966		$	379,980,507		$	322,986,887		$	121,399,416


1 Contract unit transactions
Units Outstanding at December 31, 2010		14,918,939			33,094,425			38,463,113			42,185,248			58,740,930			68,822,452			43,557,555			13,567,703			9,619,088			6,747,710

Units Issued		9,853,352			16,201,714			18,769,682			26,413,853			45,090,362			63,280,048			29,485,451			28,102,396			26,926,080			9,442,843
Units Redeemed		(4,282,606	)		(5,145,786	)		(4,093,581	)		(3,916,041	)		(7,363,643	)		(8,814,037	)		(8,811,696	)		(3,716,803	)		(6,157,764	)		(2,337,788	)

Units Outstanding at December 31, 2011		20,489,685			44,150,353			53,139,214			64,683,060			96,467,649			123,288,463			64,231,310			37,953,296			30,387,404			13,852,765

See notes to the financial statements.

Page 23

Jackson National Separate Account I

Statements of Changes in Net Assets

For the Year Ended December 31, 2011

	JNL/American Funds Growth-Income Portfolio			JNL/American Funds International Portfolio			JNL/American Funds New World Portfolio			JNL/BlackRock Commodity Securities Portfolio			JNL/BlackRock Global Allocation Portfolio			JNL/Brookfield Global Infrastructure Portfolio(a)			JNL/Capital Guardian Global Balanced Portfolio			JNL/Capital Guardian Global Diversified Research Portfolio			JNL/Capital Guardian U.S. Growth Equity Portfolio			JNL/Eagle Core Equity Portfolio
Operations
Net investment income (loss)	$	(2,901,838	)	$	(1,184,708	)	$	(1,782,616	)	$	(7,971,409	)	$	(2,483,515	)	$	(399	)	$	(1,556,455	)	$	(1,720,303	)	$	(4,703,856	)	$	(1,176,763	)
Net realized gain (loss) on investments		1,049,178			(613,447	)		(1,020,217	)		25,601,623			249,619			289			1,396,155			5,719,008			12,763,201			535,049
Net change in unrealized appreciation
(depreciation) on investments		(13,642,326	)		(30,346,697	)		(33,970,481	)		(104,708,374	)		(12,017,840	)		22,169			(23,051,421	)		(22,846,681	)		(11,885,971	)		(3,153,413	)
Net increase (decrease) in net assets
from operations		(15,494,986	)		(32,144,852	)		(36,773,314	)		(87,078,160	)		(14,251,736	)		22,059			(23,211,721	)		(18,847,976	)		(3,826,626	)		(3,795,127	)

Contract transactions 1
Purchase payments (Note 4)		255,371,468			119,476,488			133,363,620			232,230,476			235,171,864			217,311			65,079,013			40,397,139			75,688,295			41,320,708
Surrenders and terminations		(10,789,540	)		(4,679,645	)		(5,199,804	)		(44,013,459	)		(11,060,620	)		(583	)		(24,060,967	)		(17,651,305	)		(21,476,967	)		(9,141,866	)
Transfers between portfolios		39,702,283			21,889,400			44,264,324			17,151,901			115,022,485			742,548			(2,979,390	)		(5,438,510	)		(17,981,993	)		(518,664	)
Net annuitization transactions		-			-			-			(56,803	)		(11,762	)		-			(45,482	)		(201,932	)		(152,396	)		(53,244	)
Policyholder charges (Note 3)		(3,152,747	)		(1,643,760	)		(1,964,168	)		(6,589,266	)		(2,781,408	)		(145	)		(2,526,179	)		(2,075,210	)		(3,203,558	)		(871,433	)
Net increase (decrease) in net assets
from contract transactions		281,131,464			135,042,483			170,463,972			198,722,849			336,340,559			959,131			35,466,995			15,030,182			32,873,381			30,735,501

Net increase (decrease) in net assets		265,636,478			102,897,631			133,690,658			111,644,689			322,088,823			981,190			12,255,274			(3,817,794	)		29,046,755			26,940,374

Net assets beginning of period		164,649,468			97,916,654			128,284,498			685,622,577			172,035,996			-			339,312,854			289,989,472			395,676,925			109,852,162

Net assets end of period	$	430,285,946		$	200,814,285		$	261,975,156		$	797,267,266		$	494,124,819		$	981,190		$	351,568,128		$	286,171,678		$	424,723,680		$	136,792,536

1 Contract unit transactions
Units Outstanding at December 31, 2010		15,914,490			9,113,437			11,407,446			61,152,359			16,678,369			-			29,149,270			11,595,019			15,939,333			6,677,327

Units Issued		31,541,305			14,785,933			19,234,983			31,680,096			41,004,310			94,854			6,108,826			2,144,986			3,934,098			4,111,732
Units Redeemed		(4,261,256	)		(1,749,669	)		(3,055,408	)		(14,993,053	)		(7,119,630	)		(71	)		(3,134,242	)		(1,628,999	)		(2,762,806	)		(2,347,067	)

Units Outstanding at December 31, 2011		43,194,539			22,149,701			27,587,021			77,839,402			50,563,049			94,783			32,123,854			12,111,006			17,110,625			8,441,992

(a) Commencement of operations December 12, 2011.

See notes to the financial statements.

Page 24

Jackson National Separate Account I

Statements of Changes in Net Assets

For the Year Ended December 31, 2011

	JNL/Eagle SmallCap Equity Portfolio			JNL/Franklin Templeton Founding Strategy Portfolio			JNL/Franklin Templeton Global Growth Portfolio			JNL/Franklin Templeton Global Multisector Bond Portfolio(a)			JNL/Franklin Templeton Income Portfolio			JNL/Franklin Templeton International Small Cap Growth Portfolio			JNL/Franklin Templeton Mutual Shares Portfolio			JNL/Franklin Templeton Small Cap Value Portfolio			JNL/ Goldman Sachs Core Plus Bond Portfolio			JNL/Goldman Sachs Emerging Markets Debt Portfolio
Operations
Net investment income (loss)	$	(8,683,707	)	$	(1,116,013	)	$	(796,629	)	$	(1,417	)	$	20,732,084		$	(21,107	)	$	3,085,126		$	(3,167,754	)	$	2,879,757		$	11,469,247
Net realized gain (loss) on investments		62,913,195			4,483,644			1,063,103			30			11,492,218			5,435,099			3,293,661			9,212,655			26,577,548			20,451,772
Net change in unrealized appreciation
(depreciation) on investments		(82,870,232	)		(35,103,309	)		(13,647,319	)		6,268			(27,336,572	)		(32,633,737	)		(14,641,324	)		(21,295,070	)		(7,471,550	)		(58,162,357	)
Net increase (decrease) in net assets
from operations		(28,640,744	)		(31,735,678	)		(13,380,845	)		4,881			4,887,730			(27,219,745	)		(8,262,537	)		(15,250,169	)		21,985,755			(26,241,338	)

Contract transactions 1
Purchase payments (Note 4)		181,873,285			164,815,206			43,121,414			918,770			192,664,107			42,418,478			87,664,762			70,525,071			108,550,423			87,373,019
Surrenders and terminations		(33,481,900	)		(62,602,000	)		(7,465,304	)		(4,576	)		(48,348,521	)		(6,777,575	)		(12,830,254	)		(14,497,788	)		(44,364,000	)		(19,480,881	)
Transfers between portfolios		94,282,353			(39,986,241	)		8,204,756			2,290,999			39,263,754			5,004,431			4,397,343			(13,236,806	)		22,770,743			(76,421,905	)
Net annuitization transactions		(102,319	)		(117,859	)		(44,807	)		-			(320,974	)		(1,384	)		(43,527	)		(35,380	)		(271,540	)		(67,897	)
Policyholder charges (Note 3)		(4,116,309	)		(7,807,821	)		(1,229,727	)		(993	)		(5,738,125	)		(1,369,836	)		(2,460,785	)		(1,925,429	)		(3,412,094	)		(3,181,414	)
Net increase (decrease) in net assets
from contract transactions		238,455,110			54,301,285			42,586,332			3,204,200			177,520,241			39,274,114			76,727,539			40,829,668			83,273,532			(11,779,078	)

Net increase (decrease) in net assets		209,814,366			22,565,607			29,205,487			3,209,081			182,407,971			12,054,369			68,465,002			25,579,499			105,259,287			(38,020,416	)

Net assets beginning of period		414,823,887			980,170,292			120,991,401			-			647,703,471			147,476,721			242,091,585			235,996,231			471,544,213			363,804,676

Net assets end of period	$	624,638,253		$	1,002,735,899		$	150,196,888		$	3,209,081		$	830,111,442		$	159,531,090		$	310,556,587		$	261,575,730		$	576,803,500		$	325,784,260


1 Contract unit transactions
Units Outstanding at December 31, 2010		15,142,152			112,772,596			15,358,004			-			59,310,951			18,483,528			29,259,274			18,697,509			21,206,321			27,288,795

Units Issued		14,799,126			18,631,633			8,470,710			319,791			25,425,010			11,169,520			13,357,633			10,394,296			9,284,291			10,819,514
Units Redeemed		(6,324,288	)		(12,707,594	)		(3,242,762	)		(555	)		(9,534,053	)		(5,950,202	)		(4,293,413	)		(7,491,534	)		(5,830,715	)		(12,100,693	)

Units Outstanding at December 31, 2011		23,616,990			118,696,635			20,585,952			319,236			75,201,908			23,702,846			38,323,494			21,600,271			24,659,897			26,007,616

(a) Commencement of operations December 12, 2011.

See notes to the financial statements.

Page 25

Jackson National Separate Account I

Statements of Changes in Net Assets

For the Year Ended December 31, 2011

	JNL/ Goldman Sachs Mid Cap Value Portfolio			JNL/Goldman Sachs U.S. Equity Flex Portfolio			JNL/Invesco Global Real Estate Portfolio			JNL/Invesco International Growth Portfolio			JNL/Invesco Large Cap Growth Portfolio			JNL/Invesco Small Cap Growth Portfolio			JNL/Ivy Asset Strategy Portfolio			JNL/JPMorgan International Value Portfolio			JNL/JPMorgan MidCap Growth Portfolio			JNL/JPMorgan U.S. Government & Quality Bond Portfolio
Operations
Net investment income (loss)	$	(2,528,602	)	$	(1,433,739	)	$	4,919,714		$	(2,401,908	)	$	(4,383,489	)	$	(2,873,049	)	$	(16,380,898	)	$	3,535,819		$	(3,133,400	)	$	6,866,159
Net realized gain (loss) on investments		15,069,845			2,439,616			369,017			2,949,454			10,537,363			8,894,339			6,815,912			(15,001,637	)		8,229,209			13,283,320
Net change in unrealized appreciation
(depreciation) on investments		(38,018,459	)		(13,894,641	)		(42,497,046	)		(26,745,659	)		(34,207,428	)		(19,998,073	)		(132,792,229	)		(35,245,478	)		(27,720,347	)		18,928,528
Net increase (decrease) in net
assets from operations		(25,477,216	)		(12,888,764	)		(37,208,315	)		(26,198,113	)		(28,053,554	)		(13,976,783	)		(142,357,215	)		(46,711,296	)		(22,624,538	)		39,078,007

Contract transactions 1
Purchase payments (Note 4)		84,038,079			12,024,020			115,661,081			65,505,057			65,482,978			46,228,148			504,252,800			55,996,572			53,941,474			108,991,707
Surrenders and terminations		(17,031,015	)		(5,179,587	)		(21,516,642	)		(18,906,442	)		(23,942,706	)		(11,668,057	)		(47,471,787	)		(20,373,270	)		(13,802,447	)		(51,236,614	)
Transfers between portfolios		7,246,613			(9,782,514	)		(406,797	)		(7,751,435	)		24,004,877			8,035,180			176,228,341			(26,004,398	)		12,410,102			131,731,946
Net annuitization transactions		(40,856	)		-			(15,721	)		(69,798	)		(11,911	)		(7,586	)		(122,280	)		(5,203	)		(171,480	)		(155,009	)
Policyholder charges (Note 3)		(2,189,599	)		(875,885	)		(3,142,171	)		(2,086,506	)		(2,111,055	)		(1,357,380	)		(11,338,754	)		(1,869,877	)		(1,340,870	)		(3,580,157	)
Net increase (decrease) in net assets
from contract transactions		72,023,222			(3,813,966	)		90,579,750			36,690,876			63,422,183			41,230,305			621,548,320			7,743,824			51,036,779			185,751,873

Net increase (decrease) in net assets		46,546,006			(16,702,730	)		53,371,435			10,492,763			35,368,629			27,253,522			479,191,105			(38,967,472	)		28,412,241			224,829,880

Net assets beginning of period		235,721,988			109,598,052			355,580,547			273,457,922			266,462,232			139,754,356			843,627,980			302,225,301			171,540,058			491,103,647

Net assets end of period	$	282,267,994		$	92,895,322		$	408,951,982		$	283,950,685		$	301,830,861		$	167,007,878		$	1,322,819,085		$	263,257,829		$	199,952,299		$	715,933,527

1 Contract unit transactions
Units Outstanding at December 31, 2010		18,038,420			12,702,181			28,707,620			16,716,111			21,671,174			9,143,942			75,383,973			23,387,960			7,588,013			26,521,608

Units Issued		9,980,638			2,343,469			13,839,006			5,787,764			13,253,558			8,240,420			66,465,579			7,259,073			5,474,649			22,205,055
Units Redeemed		(4,582,039	)		(2,821,186	)		(6,836,121	)		(3,676,650	)		(8,299,128	)		(6,163,939	)		(12,237,855	)		(6,951,453	)		(3,705,263	)		(12,860,747	)

Units Outstanding at December 31, 2011		23,437,019			12,224,464			35,710,505			18,827,225			26,625,604			11,220,423			129,611,697			23,695,580			9,357,399			35,865,916

See notes to the financial statements.

Page 26

Jackson National Separate Account I

Statements of Changes in Net Assets

For the Year Ended December 31, 2011

	JNL/Lazard Emerging Markets Portfolio			JNL/Lazard Mid Cap Equity Portfolio			JNL/M&G Global Basics Portfolio			JNL/M&G Global Leaders Portfolio			JNL/MCM 10 x 10 Portfolio			JNL/MCM 25 Portfolio			JNL/MCM Bond Index Portfolio			JNL/MCM Communications Sector Portfolio			JNL/MCM Consumer Brands Sector Portfolio			JNL/MCM Dow 10 Portfolio
Operations
Net investment income (loss)	$	(4,877,360	)	$	(1,791,159	)	$	(706,291	)	$	(225,873	)	$	(51,557	)	$	4,922,461		$	7,441,675		$	616,868		$	(817,540	)	$	(6,182,921	)
Net realized gain (loss) on investments		29,070,786			3,527,274			1,713,528			1,930,011			4,155,388			26,519,660			15,057,602			1,517,614			5,872,911			14,856,051
Net change in unrealized appreciation
(depreciation) on investments		(214,681,740	)		(17,024,421	)		(9,381,582	)		(6,157,657	)		(13,212,735	)		2,173,778			6,271,641			(5,752,979	)		(1,726,478	)		51,904,589
Net increase (decrease) in net assets
from operations		(190,488,314	)		(15,288,306	)		(8,374,345	)		(4,453,519	)		(9,108,904	)		33,615,899			28,770,918			(3,618,497	)		3,328,893			60,577,719

Contract transactions 1
Purchase payments (Note 4)		192,515,370			44,622,485			16,321,061			8,297,406			46,190,536			63,346,876			74,107,842			13,781,871			21,714,232			38,549,588
Surrenders and terminations		(45,103,065	)		(16,608,208	)		(2,112,988	)		(1,160,290	)		(13,283,495	)		(43,763,559	)		(47,786,680	)		(3,737,889	)		(4,940,366	)		(38,364,381	)
Transfers between portfolios		(183,900,198	)		(1,794,744	)		6,426,662			4,319,906			(5,463,653	)		(36,256,687	)		12,326,278			(12,205,016	)		12,905,194			56,031,463
Net annuitization transactions		(72,607	)		98,554			(9,380	)		-			-			(106,444	)		(166,022	)		(12,430	)		(4,219	)		(116,833	)
Policyholder charges (Note 3)		(7,282,346	)		(1,177,782	)		(453,029	)		(266,147	)		(2,030,332	)		(2,384,190	)		(3,497,526	)		(411,390	)		(579,187	)		(1,684,588	)
Net increase (decrease) in net assets
from contract transactions		(43,842,846	)		25,140,305			20,172,326			11,190,875			25,413,056			(19,164,004	)		34,983,892			(2,584,854	)		29,095,654			54,415,249

Net increase (decrease) in net assets		(234,331,160	)		9,851,999			11,797,981			6,737,356			16,304,152			14,451,895			63,754,810			(6,203,351	)		32,424,547			114,992,968

Net assets beginning of period		973,070,632			196,395,684			42,220,995			22,109,439			228,626,310			487,531,920			533,405,028			59,388,369			74,764,115			376,875,309

Net assets end of period	$	738,739,472		$	206,247,683		$	54,018,976		$	28,846,795		$	244,930,462		$	501,983,815		$	597,159,838		$	53,185,018		$	107,188,662		$	491,868,277


1 Contract unit transactions
Units Outstanding at December 31, 2010		69,140,279			10,055,145			2,869,515			1,761,007			26,355,512			35,166,622			40,776,333			10,912,092			6,641,312			45,319,632

Units Issued		18,507,106			4,732,858			2,625,855			1,495,887			7,169,730			8,061,097			11,537,754			5,169,551			5,965,073			17,484,156
Units Redeemed		(22,969,568	)		(3,480,091	)		(1,262,794	)		(617,509	)		(4,266,350	)		(9,640,365	)		(9,116,967	)		(5,856,549	)		(3,524,386	)		(11,989,384	)

Units Outstanding at December 31, 2011		64,677,817			11,307,912			4,232,576			2,639,385			29,258,892			33,587,354			43,197,120			10,225,094			9,081,999			50,814,404

See notes to the financial statements.

Page 27

Jackson National Separate Account I

Statements of Changes in Net Assets

For the Year Ended December 31, 2011

	JNL/MCM Dow Dividend Portfolio			JNL/MCM Emerging Markets Index Portfolio(a)			JNL/MCM European 30 Portfolio			JNL/MCM Financial Sector Portfolio			JNL/MCM Global 15 Portfolio			JNL/MCM Global Alpha Portfolio			JNL/MCM Healthcare Sector Portfolio			JNL/MCM Index 5 Portfolio			JNL/MCM International Index Portfolio			JNL/MCM JNL 5 Portfolio
Operations
Net investment income (loss)	$	3,973,443		$	(1,166	)	$	90,776		$	(1,330,931	)	$	(7,492,783	)	$	(396,123	)	$	(1,388,143	)	$	(1,596,042	)	$	4,759,257		$	44,562,604
Net realized gain (loss) on investments		(11,680,581	)		21			1,203,074			223,188			9,648,569			1,366,758			2,980,516			8,517,815			(3,967,210	)		(125,700,271	)
Net change in unrealized appreciation
(depreciation) on investments		19,155,724			17,296			(3,887,517	)		(23,832,451	)		(46,590,424	)		(399,766	)		9,701,112			(22,384,803	)		(65,558,379	)		(25,127,135	)
Net increase (decrease) in net assets
from operations		11,448,586			16,151			(2,593,667	)		(24,940,194	)		(44,434,638	)		570,869			11,293,485			(15,463,030	)		(64,766,332	)		(106,264,802	)

Contract transactions 1
Purchase payments (Note 4)		48,412,913			866,994			6,112,173			33,711,861			22,374,008			15,366,721			46,451,207			102,234,262			64,230,067			136,755,669
Surrenders and terminations		(17,207,551	)		(762	)		(979,443	)		(10,910,968	)		(48,570,905	)		(2,000,914	)		(13,999,131	)		(12,963,812	)		(37,847,601	)		(210,027,971	)
Transfers between portfolios		1,988,274			2,492,920			577,003			(18,143,541	)		(49,949,160	)		(1,477,818	)		51,550,663			7,631,535			(25,311,931	)		(288,984,257	)
Net annuitization transactions		(32,378	)		-			-			2,767			(158,687	)		-			(8,619	)		(211,899	)		(88,537	)		(393,586	)
Policyholder charges (Note 3)		(1,696,413	)		(632	)		(210,459	)		(1,263,240	)		(1,779,074	)		(443,130	)		(1,587,983	)		(3,275,427	)		(2,664,572	)		(14,783,125	)
Net increase (decrease) in net assets
from contract transactions		31,464,845			3,358,520			5,499,274			3,396,879			(78,083,818	)		11,444,859			82,406,137			93,414,659			(1,682,574	)		(377,433,270	)

Net increase (decrease) in net assets		42,913,431			3,374,671			2,905,607			(21,543,315	)		(122,518,456	)		12,015,728			93,699,622			77,951,629			(66,448,906	)		(483,698,072	)

Net assets beginning of period		253,764,106			-			16,887,125			172,833,978			522,950,999			38,606,136			159,185,754			302,371,774			473,953,439			3,150,481,677

Net assets end of period	$	296,677,537		$	3,374,671		$	19,792,732		$	151,290,663		$	400,432,543		$	50,621,864		$	252,885,376		$	380,323,403		$	407,504,533		$	2,666,783,605


1 Contract unit transactions
Units Outstanding at December 31, 2010		37,320,721			-			1,405,635			22,948,511			37,238,005			3,759,223			13,809,605			31,427,186			31,091,992			285,783,945

Units Issued		11,401,393			373,811			1,958,978			9,476,611			1,791,404			4,343,070			12,561,452			14,332,958			5,727,282			3,175,070
Units Redeemed		(6,865,260	)		(155	)		(1,559,057	)		(9,004,296	)		(7,576,349	)		(3,237,700	)		(6,315,435	)		(4,804,542	)		(5,985,852	)		(38,267,130	)

Units Outstanding at December 31, 2011		41,856,854			373,656			1,805,556			23,420,826			31,453,060			4,864,593			20,055,622			40,955,602			30,833,422			250,691,885

(a) Commencement of operations August 29, 2011.

See notes to the financial statements.

Page 28

Jackson National Separate Account I

Statements of Changes in Net Assets

For the Year Ended December 31, 2011

	JNL/MCM JNL Optimized 5 Portfolio			JNL/MCM Nasdaq 25 Portfolio			JNL/MCM NYSE International 25 Portfolio			JNL/MCM Oil & Gas Sector Portfolio			JNL/MCM Pacific Rim 30 Portfolio			JNL/MCM S&P 10 Portfolio			JNL/MCM S&P 24 Portfolio			JNL/MCM S&P 400 MidCap Index Portfolio			JNL/MCM S&P 500 Index Portfolio			JNL/MCM S&P SMid 60 Portfolio
Operations
Net investment income (loss)	$	842,998		$	(1,348,472	)	$	363,209		$	(6,605,885	)	$	(1,472	)	$	(3,949,222	)	$	(538,836	)	$	(4,720,825	)	$	2,379,429		$	(1,393,665	)
Net realized gain (loss) on investments		(3,579,929	)		8,483,162			(5,822,493	)		24,526,751			2,415,778			(15,214,404	)		2,854,089			45,543,755			37,764,637			17,268,999
Net change in unrealized appreciation
(depreciation) on investments		(39,484,234	)		(8,655,479	)		(21,031,088	)		(28,296,063	)		(3,767,774	)		(25,669,504	)		(2,832,652	)		(63,720,094	)		(42,818,485	)		(32,508,098	)
Net increase (decrease) in net assets
from operations		(42,221,165	)		(1,520,789	)		(26,490,372	)		(10,375,197	)		(1,353,468	)		(44,833,130	)		(517,399	)		(22,897,164	)		(2,674,419	)		(16,632,764	)

Contract transactions 1
Purchase payments (Note 4)		31,690,615			25,351,435			11,550,868			189,579,686			11,555,545			8,919,915			10,041,466			90,815,169			165,949,084			30,868,008
Surrenders and terminations		(25,030,074	)		(6,713,341	)		(5,492,933	)		(49,807,167	)		(1,395,180	)		(28,178,312	)		(2,814,639	)		(42,839,498	)		(69,941,091	)		(9,185,198	)
Transfers between portfolios		(45,017,994	)		17,231,962			(7,979,908	)		79,316,497			(2,657,586	)		(18,792,963	)		2,302,537			(23,899,380	)		(6,949,197	)		(20,375,830	)
Net annuitization transactions		(25,162	)		(4,382	)		-			(61,852	)		(12,835	)		(62,409	)		(17,581	)		(80,773	)		(174,826	)		(24,411	)
Policyholder charges (Note 3)		(2,417,100	)		(908,604	)		(546,894	)		(5,748,708	)		(341,093	)		(730,161	)		(390,610	)		(2,932,835	)		(5,178,294	)		(1,070,506	)
Net increase (decrease) in net assets
from contract transactions		(40,799,715	)		34,957,070			(2,468,867	)		213,278,456			7,148,851			(38,843,930	)		9,121,173			21,062,683			83,705,676			212,063

Net increase (decrease) in net assets		(83,020,880	)		33,436,281			(28,959,239	)		202,903,259			5,795,383			(83,677,060	)		8,603,774			(1,834,481	)		81,031,257			(16,420,701	)

Net assets beginning of period		408,700,472			113,839,885			95,366,089			593,299,218			35,548,780			289,550,874			45,374,926			465,804,873			811,001,199			174,748,033

Net assets end of period	$	325,679,592		$	147,276,166		$	66,406,850		$	796,202,477		$	41,344,163		$	205,873,814		$	53,978,700		$	463,970,392		$	892,032,456		$	158,327,332


1 Contract unit transactions
Units Outstanding at December 31, 2010		42,418,848			10,220,326			11,519,445			19,158,826			2,735,275			31,892,585			4,730,275			27,995,758			74,195,565			15,265,745

Units Issued		3,287,438			8,027,906			6,294,812			12,424,051			2,095,111			2,838,508			4,151,953			9,407,530			25,697,354			6,624,924
Units Redeemed		(7,638,762	)		(5,091,870	)		(7,127,786	)		(6,377,676	)		(1,542,751	)		(7,594,348	)		(3,438,542	)		(8,529,746	)		(18,260,612	)		(6,699,517	)

Units Outstanding at December 31, 2011		38,067,524			13,156,362			10,686,471			25,205,201			3,287,635			27,136,745			5,443,686			28,873,542			81,632,307			15,191,152

See notes to the financial statements.

Page 29

Jackson National Separate Account I

Statements of Changes in Net Assets

For the Year Ended December 31, 2011

																JNL/
	JNL/MCM			JNL/MCM			JNL/MCM			JNL/MCM						Oppenheimer			JNL/PAM			JNL/PAM			JNL/PIMCO			JNL/PIMCO
	Select Small-Cap			Small Cap			Technology			Value Line 30			JNL/MCM			Global Growth			Asia ex-Japan			China-India			Real Return			Total Return
	Portfolio			Index Portfolio			Sector Portfolio			Portfolio			VIP Portfolio			Portfolio			Portfolio			Portfolio			Portfolio			Bond Portfolio
Operations
Net investment income (loss)	$	(1,549,818	)	$	(3,537,680	)	$	(4,276,937	)	$	(7,745,507	)	$	(787,452	)	$	(2,609,866	)	$	(1,417,274	)	$	(3,915,795	)	$	(7,043,857	)	$	43,471,540
Net realized gain (loss) on investments		(23,580,986	)		37,328,766			25,388,467			(14,998,903	)		(11,812,723	)		221,224			13,527,632			22,834,719			87,587,147			13,871,538
Net change in unrealized appreciation
(depreciation) on investments		25,106,161			(61,192,565	)		(30,635,866	)		(96,327,138	)		(1,275,734	)		(29,553,222	)		(42,633,423	)		(125,975,949	)		26,056,046			21,250,622
Net increase (decrease) in net
assets from operations		(24,643	)		(27,401,479	)		(9,524,336	)		(119,071,548	)		(13,875,909	)		(31,941,864	)		(30,523,065	)		(107,057,025	)		106,599,336			78,593,700

Contract transactions 1
Purchase payments (Note 4)		13,287,140			65,376,371			69,862,848			30,374,975			20,433,453			75,519,032			31,931,872			89,233,069			302,559,262			655,491,829
Surrenders and terminations		(27,316,232	)		(40,148,329	)		(17,934,994	)		(35,341,011	)		(20,134,391	)		(20,509,624	)		(6,509,708	)		(15,003,138	)		(81,875,417	)		(212,433,565	)
Transfers between portfolios		(24,678,838	)		(28,783,524	)		1,157,481			(54,877,555	)		(25,740,706	)		16,210,842			(34,400,895	)		(54,434,523	)		235,756,061			(19,850,083	)
Net annuitization transactions		(27,383	)		35,962			(24,090	)		(75,475	)		(165,365	)		16,101			(6,872	)		(26,601	)		(287,649	)		(1,108,597	)
Policyholder charges (Note 3)		(968,345	)		(2,425,551	)		(2,415,334	)		(2,251,437	)		(1,295,398	)		(1,958,156	)		(934,467	)		(2,885,794	)		(9,092,673	)		(19,871,034	)
Net increase (decrease) in net
assets from contract transactions		(39,703,658	)		(5,945,071	)		50,645,911			(62,170,503	)		(26,902,407	)		69,278,195			(9,920,070	)		16,883,013			447,059,584			402,228,550

Net increase (decrease) in net assets		(39,728,301	)		(33,346,550	)		41,121,575			(181,242,051	)		(40,778,316	)		37,336,331			(40,443,135	)		(90,174,012	)		553,658,920			480,822,250

Net assets beginning of period		278,923,161			444,510,802			272,751,649			547,477,608			285,252,176			247,329,291			141,097,648			362,907,810			972,579,735			2,500,104,598

Net assets end of period	$	239,194,860		$	411,164,252		$	313,873,224		$	366,235,557		$	244,473,860		$	284,665,622		$	100,654,513		$	272,733,798		$	1,526,238,655		$	2,980,926,848


1 Contract unit transactions
Units Outstanding at December 31, 2010		21,759,412			29,614,502			39,671,083			43,841,066			25,456,148			17,907,134			14,943,811			42,195,812			76,830,940			140,075,503

Units Issued		1,250,825			7,673,168			25,023,260			5,357,433			1,192,686			8,604,221			5,959,792			16,879,852			51,060,045			56,260,368
Units Redeemed		(4,363,999	)		(8,276,522	)		(18,300,367	)		(10,538,988	)		(3,677,295	)		(3,751,712	)		(7,171,311	)		(14,444,088	)		(18,290,948	)		(35,031,877	)

Units Outstanding at December 31, 2011		18,646,238			29,011,148			46,393,976			38,659,511			22,971,539			22,759,643			13,732,292			44,631,576			109,600,037			161,303,994

See notes to the financial statements.

Page 30

Jackson National Separate Account I

Statements of Changes in Net Assets

For the Year Ended December 31, 2011

	JNL/PPM America Floating Rate Income Portfolio			JNL/ PPM America High Yield Bond Portfolio			JNL/ PPM America Mid Cap Value Portfolio			JNL/ PPM America Small Cap Value Portfolio			JNL/ PPM America Value Equity Portfolio			JNL/ Red Rocks Listed Private Equity Portfolio			JNL/S&P 4 Portfolio			JNL/S&P Competitive Advantage Portfolio			JNL/S&P Dividend Income & Growth Portfolio			JNL/S&P Intrinsic Value Portfolio
Operations
Net investment income (loss)	$	(892,220	)	$	43,681,888		$	(1,577,307	)	$	(984,940	)	$	(444,460	)	$	26,494,984		$	29,439,421		$	(539,565	)	$	978,915		$	(937,930	)
Net realized gain (loss) on investments		(979,323	)		33,871,368			3,153,009			5,271,938			159,361			19,404,459			47,699,666			15,129,763			17,346,174			14,741,519
Net change in unrealized appreciation
(depreciation) on investments		727,670			(53,312,026	)		(15,500,672	)		(14,059,198	)		(9,035,759	)		(136,194,950	)		(43,842,978	)		(5,095,398	)		18,982,334			(13,625,913	)
Net increase (decrease) in net assets
from operations		(1,143,873	)		24,241,230			(13,924,970	)		(9,772,200	)		(9,320,858	)		(90,295,507	)		33,296,109			9,494,800			37,307,423			177,676

Contract transactions 1
Purchase payments (Note 4)		51,480,667			196,422,794			28,660,712			20,036,725			17,550,344			107,940,017			159,225,954			23,790,774			112,426,130			37,580,008
Surrenders and terminations		(5,971,950	)		(67,272,469	)		(6,649,069	)		(4,808,523	)		(10,484,034	)		(16,255,729	)		(42,886,739	)		(5,893,638	)		(20,508,488	)		(9,173,314	)
Transfers between portfolios		85,277,200			1,471,630			(2,618,931	)		2,015,586			(6,689,663	)		30,733,413			16,246,427			43,242,414			186,335,268			64,475,864
Net annuitization transactions		-			(288,974	)		-			-			(178,609	)		(56,723	)		(59,877	)		-			(11,396	)		(9,523	)
Policyholder charges (Note 3)		(431,728	)		(5,355,774	)		(857,898	)		(598,031	)		(542,752	)		(3,298,334	)		(6,970,856	)		(643,726	)		(2,676,415	)		(1,151,402	)
Net increase (decrease) in net assets
from contract transactions		130,354,189			124,977,207			18,534,814			16,645,757			(344,714	)		119,062,644			125,554,909			60,495,824			275,565,099			91,721,633

Net increase (decrease) in net assets		129,210,316			149,218,437			4,609,844			6,873,557			(9,665,572	)		28,767,137			158,851,018			69,990,624			312,872,522			91,899,309

Net assets beginning of period		-			721,609,830			83,276,014			58,321,716			106,819,145			279,889,688			797,263,406			83,407,636			216,196,219			105,540,620

Net assets end of period	$	129,210,316		$	870,828,267		$	87,885,858		$	65,195,273		$	97,153,573		$	308,656,825		$	956,114,424		$	153,398,260		$	529,068,741		$	197,439,929

1 Contract unit transactions
Units Outstanding at December 31, 2010		-			47,902,284			8,008,758			5,650,322			6,282,650			27,500,615			76,365,227			7,688,721			21,451,619			9,700,079

Units Issued		19,156,288			38,332,808			8,841,121			6,223,818			2,679,886			21,940,911			24,966,531			8,798,773			33,067,340			14,373,177
Units Redeemed		(6,118,377	)		(30,433,336	)		(7,595,061	)		(4,910,152	)		(2,858,687	)		(11,917,946	)		(13,507,599	)		(3,500,762	)		(7,090,053	)		(6,780,347	)

Units Outstanding at December 31, 2011		13,037,911			55,801,756			9,254,818			6,963,988			6,103,849			37,523,580			87,824,159			12,986,732			47,428,906			17,292,909

See notes to the financial statements.

Page 31

Jackson National Separate Account I

Statements of Changes in Net Assets

For the Year Ended December 31, 2011

	JNL/ S&P Managed Aggressive Growth Portfolio			JNL/ S&P Managed Conservative Portfolio			JNL/ S&P Managed Growth Portfolio			JNL/ S&P Managed Moderate Portfolio			JNL/ S&P Managed Moderate Growth Portfolio			JNL/S&P Total Yield Portfolio			JNL/T. Rowe Price Established Growth Portfolio			JNL/T. Rowe Price Mid-Cap Growth Portfolio			JNL/T. Rowe Price Short-Term Bond Portfolio			JNL/T. Rowe Price Value Portfolio
Operations
Net investment income (loss)	$	(6,336,118	)	$	8,343,327		$	(16,955,916	)	$	7,658,906		$	3,621,888		$	(253,015	)	$	(13,238,389	)	$	(17,290,584	)	$	(1,173,699	)	$	(812,390	)
Net realized gain (loss) on investments		13,311,715			28,977,287			33,895,764			35,189,474			87,057,923			5,335,154			27,711,857			140,357,614			1,010,047			3,102,219
Net change in unrealized appreciation (depreciation)
on investments		(60,089,470	)		(23,254,846	)		(131,808,284	)		(61,564,342	)		(189,817,685	)		(9,552,230	)		(44,647,287	)		(171,994,360	)		(1,372,538	)		(20,409,752	)
Net increase (decrease) in net
assets from operations		(53,113,873	)		14,065,768			(114,868,436	)		(18,715,962	)		(99,137,874	)		(4,470,091	)		(30,173,819	)		(48,927,330	)		(1,536,190	)		(18,119,923	)

Contract transactions 1
Purchase payments (Note 4)		181,014,647			261,306,590			587,210,611			481,929,674			858,566,779			13,198,146			188,967,000			294,669,353			131,519,506			76,259,026
Surrenders and terminations		(63,500,637	)		(80,076,010	)		(135,216,420	)		(107,125,408	)		(178,008,595	)		(4,913,991	)		(67,040,257	)		(73,861,774	)		(35,558,654	)		(37,232,939	)
Transfers between portfolios		(4,033,236	)		114,582,102			6,681,345			86,612,076			55,496,133			11,690,978			33,194,251			31,161,350			68,379,469			2,130,420
Net annuitization transactions		(632,819	)		(366,486	)		(194,042	)		(459,641	)		(360,044	)		-			(516,332	)		(323,125	)		(279,059	)		(119,630	)
Policyholder charges (Note 3)		(5,425,384	)		(7,933,096	)		(16,874,356	)		(14,671,571	)		(25,587,654	)		(445,919	)		(5,608,419	)		(8,020,863	)		(3,145,948	)		(2,455,119	)
Net increase (decrease) in net
assets from contract transactions		107,422,571			287,513,100			441,607,138			446,285,130			710,106,619			19,529,214			148,996,243			243,624,941			160,915,314			38,581,758

Net increase (decrease) in net assets		54,308,698			301,578,868			326,738,702			427,569,168			610,968,745			15,059,123			118,822,424			194,697,611			159,379,124			20,461,835

Net assets beginning of period		694,557,652			886,034,775			1,946,317,107			1,514,844,954			2,629,579,283			64,955,589			782,771,598			981,793,339			334,097,582			411,509,466

Net assets end of period	$	748,866,350		$	1,187,613,643		$	2,273,055,809		$	1,942,414,122		$	3,240,548,028		$	80,014,712		$	901,594,022		$	1,176,490,950		$	493,476,706		$	431,971,301


1 Contract unit transactions
Units Outstanding at December 31, 2010		47,392,228			74,750,429			130,135,256			122,022,557			176,005,520			6,691,015			27,157,875			21,009,160			31,934,742			28,398,368

Units Issued		17,006,144			36,641,255			44,552,979			46,899,383			64,382,357			4,743,329			9,885,919			9,432,772			29,309,145			8,692,326
Units Redeemed		(10,113,595	)		(12,866,836	)		(15,933,990	)		(11,604,396	)		(18,094,711	)		(2,583,515	)		(5,175,435	)		(4,760,511	)		(13,976,111	)		(6,258,678	)

Units Outstanding at December 31, 2011		54,284,777			98,524,848			158,754,245			157,317,544			222,293,166			8,850,829			31,868,359			25,681,421			47,267,776			30,832,016

See notes to the financial statements.

Page 32

Jackson National Separate Account I

Statements of Changes in Net Assets

For the Year Ended December 31, 2011

	JNL/WMC			JNL/WMC			JNL/WMC
	Balanced			Money Market			Value
	Portfolio			Portfolio			Portfolio
Operations
Net investment income (loss)	$	(4,326,911	)	$	(13,883,421	)	$	(1,820,527	)
Net realized gain (loss) on investments		18,280,982			8,225			7,716,798
Net change in unrealized appreciation
(depreciation) on investments		8,658,030			-			(19,747,706	)
Net increase (decrease) in net assets
from operations		22,612,101			(13,875,196	)		(13,851,435	)

Contract transactions 1
Purchase payments (Note 4)		485,297,172			632,439,188			72,595,838
Surrenders and terminations		(88,241,644	)		(204,737,209	)		(23,254,928	)
Transfers between portfolios		74,996,231			(70,805,973	)		(24,104,717	)
Net annuitization transactions		(411,304	)		(750,172	)		43,682
Policyholder charges (Note 3)		(12,589,475	)		(8,391,858	)		(2,372,211	)
Net increase (decrease) in net assets from
contract transactions		459,050,980			347,753,976			22,907,664

Net increase (decrease) in net assets		481,663,081			333,878,780			9,056,229

Net assets beginning of period		1,228,147,867			676,914,189			353,077,011

Net assets end of period	$	1,709,810,948		$	1,010,792,969		$	362,133,240


1 Contract unit transactions
Units Outstanding at December 31, 2010		43,833,564			54,427,966			17,860,550

Units Issued		20,581,507			113,883,524			4,958,265
Units Redeemed		(4,797,014	)		(86,296,529	)		(3,895,485	)

Units Outstanding at December 31, 2011		59,618,057			82,014,961			18,923,330

See notes to the financial statements.

Page 33

Jackson National Separate Account I

Statements of Changes in Net Assets

For the Year Ended December 31, 2011

	JNL Institutional Alt 20 Portfolio			JNL Institutional Alt 35 Portfolio			JNL Institutional Alt 50 Portfolio			JNL Institutional Alt 65 Portfolio			JNL/American Funds Blue Chip Income and Growth Portfolio(a)			JNL/American Funds Global Bond Portfolio(a)			JNL/American Funds Global Small Capitalization Portfolio(a)			JNL/American Funds Growth-Income Portfolio(a)			JNL/American Funds International Portfolio(a)			JNL/American Funds New World Portfolio(a)
Operations
Net investment income (loss)	$	(2,874,725	)	$	(4,157,371	)	$	(4,962,239	)	$	(3,740,079	)	$	(573,064	)	$	(506,575	)	$	(302,275	)	$	(652,983	)	$	(445,259	)	$	(486,789	)
Net realized gain (loss) on investments		3,036,102			6,062,836			8,299,238			6,298,476			163,650			419,885			422,602			449,178			616,795			351,221
Net change in unrealized appreciation
(depreciation) on investments		52,862,597			84,095,869			100,653,263			67,978,542			11,295,502			899,468			7,306,334			13,449,110			7,733,156			9,004,472
Net increase (decrease) in net assets
from operations		53,023,974			86,001,334			103,990,262			70,536,939			10,886,088			812,778			7,426,661			13,245,305			7,904,692			8,868,904

Contract transactions 1
Purchase payments (Note 4)		276,666,853			375,595,367			445,206,638			274,435,842			96,981,885			60,024,968			35,962,709			110,257,027			59,890,466			62,655,517
Surrenders and terminations		(14,237,116	)		(22,581,655	)		(24,447,808	)		(17,071,797	)		(2,598,357	)		(1,950,997	)		(1,104,338	)		(2,641,173	)		(1,631,041	)		(1,406,062	)
Transfers between portfolios		81,834,639			124,201,798			169,814,267			132,954,747			34,371,726			40,652,312			32,230,002			43,835,859			31,781,219			58,174,934
Net annuitization transactions		-			-			-			(23,334	)		-			-			-			-			(3,212	)		-
Policyholder charges (Note 3)		(127,475	)		(297,738	)		(322,093	)		(181,334	)		(29,015	)		(24,725	)		(27,535	)		(47,550	)		(25,470	)		(8,795	)
Net increase (decrease) in net assets
from contract transactions		344,136,901			476,917,772			590,251,004			390,114,124			128,726,239			98,701,558			67,060,838			151,404,163			90,011,962			119,415,594

Net increase (decrease) in net assets		397,160,875			562,919,106			694,241,266			460,651,063			139,612,327			99,514,336			74,487,499			164,649,468			97,916,654			128,284,498

Net assets beginning of period		194,778,698			303,776,892			351,060,487			225,707,466			-			-			-			-			-			-

Net assets end of period	$	591,939,573		$	866,695,998		$	1,045,301,753		$	686,358,529		$	139,612,327		$	99,514,336		$	74,487,499		$	164,649,468		$	97,916,654		$	128,284,498


1 Contract unit transactions
Units Outstanding at December 31, 2009		15,469,377			23,203,244			26,163,489			16,343,642			-			-			-			-			-			-

Units Issued		28,517,708			38,824,487			46,339,205			31,042,252			14,353,914			10,566,277			7,037,561			16,400,273			9,536,705			11,591,360
Units Redeemed		(1,801,837	)		(3,286,801	)		(3,680,242	)		(3,828,339	)		(786,211	)		(947,189	)		(289,851	)		(485,783	)		(423,268	)		(183,914	)

Units Outstanding at December 31, 2010		42,185,248			58,740,930			68,822,452			43,557,555			13,567,703			9,619,088			6,747,710			15,914,490			9,113,437			11,407,446

(a) Commencement of operations May 3, 2010.

See notes to the financial statements.

Page 34

Jackson National Separate Account I

Statements of Changes in Net Assets

For the Year Ended December 31, 2011

	JNL/BlackRock Commodity Securities Portfolio			JNL/BlackRock Global Allocation Portfolio(a)			JNL/Capital Guardian Global Balanced Portfolio			JNL/Capital Guardian Global Diversified Research Portfolio			JNL/Capital Guardian U.S. Growth Equity Portfolio			JNL/Eagle Core Equity Portfolio			JNL/Eagle SmallCap Equity Portfolio			JNL/Franklin Templeton Founding Strategy Portfolio			JNL/Franklin Templeton Global Growth Portfolio			JNL/Franklin Templeton Income Portfolio
Operations
Net investment income (loss)	$	(6,297,093	)	$	(256,690	)	$	(1,325,179	)	$	(2,051,127	)	$	(4,054,192	)	$	(1,194,158	)	$	(3,251,748	)	$	11,943,019		$	(82,940	)	$	13,127,231
Net realized gain (loss) on investments		816,220			(8,045	)		(3,997,760	)		(53,103	)		2,848,677			(3,334,783	)		5,294,427			(7,322,766	)		(1,865,429	)		3,212,543
Net change in unrealized appreciation
(depreciation) on investments		86,960,321			3,358,746			28,351,382			27,273,452			38,778,898			13,969,229			76,297,686			71,288,911			7,880,890			38,431,585
Net increase (decrease) in net assets
from operations		81,479,448			3,094,011			23,028,443			25,169,222			37,573,383			9,440,288			78,340,365			75,909,164			5,932,521			54,771,359

Contract transactions 1
Purchase payments (Note 4)		123,788,609			87,923,285			71,810,073			59,860,788			85,450,187			24,819,377			70,245,298			174,975,959			36,169,345			155,716,914
Surrenders and terminations		(30,269,742	)		(613,068	)		(21,259,725	)		(15,254,410	)		(20,355,642	)		(8,411,539	)		(18,066,410	)		(52,818,550	)		(6,369,350	)		(36,184,831	)
Transfers between portfolios		11,190,441			81,633,754			614,287			(19,646,417	)		9,009,111			7,590,476			104,767,608			(12,790,824	)		2,674,977			67,185,867
Net annuitization transactions		131,563			-			322,579			84,379			(73,042	)		(89,863	)		(11,045	)		284,466			(49,594	)		144,002
Policyholder charges (Note 3)		(590,563	)		(1,986	)		(261,026	)		(214,785	)		(251,680	)		(105,466	)		(243,898	)		(1,027,918	)		(99,327	)		(464,927	)
Net increase (decrease) in net assets
from contract transactions		104,250,308			168,941,985			51,226,188			24,829,555			73,778,934			23,802,985			156,691,553			108,623,133			32,326,051			186,397,025

Net increase (decrease) in net assets		185,729,756			172,035,996			74,254,631			49,998,777			111,352,317			33,243,273			235,031,918			184,532,297			38,258,572			241,168,384

Net assets beginning of period		499,892,821			-			265,058,223			239,990,695			284,324,608			76,608,889			179,791,969			795,637,995			82,732,829			406,535,087

Net assets end of period	$	685,622,577		$	172,035,996		$	339,312,854		$	289,989,472		$	395,676,925		$	109,852,162		$	414,823,887		$	980,170,292		$	120,991,401		$	647,703,471


1 Contract unit transactions
Units Outstanding at December 31, 2009		51,593,983			-			24,522,417			10,688,386			12,891,112			5,157,807			8,800,811			99,557,243			11,091,559			41,299,026

Units Issued		25,759,293			16,906,956			9,247,211			3,619,523			5,526,197			2,968,301			9,546,474			26,758,399			7,593,838			27,234,999
Units Redeemed		(16,200,917	)		(228,587	)		(4,620,358	)		(2,712,890	)		(2,477,976	)		(1,448,781	)		(3,205,133	)		(13,543,046	)		(3,327,393	)		(9,223,074	)

Units Outstanding at December 31, 2010		61,152,359			16,678,369			29,149,270			11,595,019			15,939,333			6,677,327			15,142,152			112,772,596			15,358,004			59,310,951

(a) Commencement of operations October 11, 2010.

See notes to the financial statements.

Page 35

Jackson National Separate Account I

Statements of Changes in Net Assets

For the Year Ended December 31, 2011

	JNL/Franklin Templeton International Small CapGrowth Portfolio			JNL/Franklin Templeton Mutual Shares Portfolio			JNL/Franklin Templeton Small Cap Value Portfolio			JNL/ Goldman Sachs Core Plus Bond Portfolio			JNL/Goldman Sachs Emerging Markets Debt Portfolio			JNL/ Goldman Sachs Mid Cap Value Portfolio			JNL/Goldman Sachs U.S. Equity Flex Portfolio			JNL/Invesco Global Real Estate Portfolio			JNL/Invesco International Growth Portfolio			JNL/Invesco Large Cap Growth Portfolio
Operations
Net investment income (loss)	$	(313,937	)	$	(2,859,144	)	$	(1,953,913	)	$	4,122,482		$	(706,508	)	$	(1,710,092	)	$	(894,697	)	$	7,973,504		$	(1,622,044	)	$	(3,018,048	)
Net realized gain (loss) on investments		3,642,177			45,988			4,734,068			14,230,534			8,378,834			1,896,736			2,761,873			(3,846,101	)		(5,301,274	)		1,388,196
Net change in unrealized appreciation
(depreciation) on investments		16,576,461			21,835,252			36,625,343			5,163,342			20,092,208			36,318,170			5,499,891			35,562,164			31,293,845			37,148,778
Net increase (decrease) in net assets
from operations		19,904,701			19,022,096			39,405,498			23,516,358			27,764,534			36,504,814			7,367,067			39,689,567			24,370,527			35,518,926

Contract transactions 1
Purchase payments (Note 4)		38,710,532			75,395,345			53,713,328			102,455,325			94,811,095			54,138,552			23,238,603			73,409,848			59,136,804			51,308,511
Surrenders and terminations		(5,643,661	)		(10,755,522	)		(11,507,389	)		(38,331,588	)		(14,878,537	)		(12,419,946	)		(4,951,053	)		(15,013,977	)		(16,802,121	)		(20,408,389	)
Transfers between portfolios		2,535,935			12,636,281			28,265,021			19,162,530			129,587,163			27,632,311			(2,882,338	)		43,154,215			20,433,077			(18,195,166	)
Net annuitization transactions		(2,130	)		(42,324	)		(35,778	)		5,898			(12,638	)		(94,783	)		145,902			4,583			(409,848	)		(87,712	)
Policyholder charges (Note 3)		(76,317	)		(164,256	)		(143,207	)		(447,497	)		(207,825	)		(162,580	)		(84,917	)		(247,009	)		(221,329	)		(287,738	)
Net increase (decrease) in net assets
from contract transactions		35,524,359			77,069,524			70,291,975			82,844,668			209,299,258			69,093,554			15,466,197			101,307,660			62,136,583			12,329,506

Net increase (decrease) in net assets		55,429,060			96,091,620			109,697,473			106,361,026			237,063,792			105,598,368			22,833,264			140,997,227			86,507,110			47,848,432

Net assets beginning of period		92,047,661			145,999,965			126,298,758			365,183,187			126,740,884			130,123,620			86,764,788			214,583,320			186,950,812			218,613,800

Net assets end of period	$	147,476,721		$	242,091,585		$	235,996,231		$	471,544,213		$	363,804,676		$	235,721,988		$	109,598,052		$	355,580,547		$	273,457,922		$	266,462,232


1 Contract unit transactions
Units Outstanding at December 31, 2009		13,701,298			19,404,527			12,508,063			17,499,651			10,865,653			12,215,326			10,774,450			20,032,539			12,731,401			20,597,727

Units Issued		11,554,000			13,779,944			11,536,691			10,091,183			21,182,002			9,765,122			5,755,831			13,918,972			7,607,590			7,834,899
Units Redeemed		(6,771,770	)		(3,925,197	)		(5,347,245	)		(6,384,513	)		(4,758,860	)		(3,942,028	)		(3,828,100	)		(5,243,891	)		(3,622,880	)		(6,761,452	)

Units Outstanding at December 31, 2010		18,483,528			29,259,274			18,697,509			21,206,321			27,288,795			18,038,420			12,702,181			28,707,620			16,716,111			21,671,174

See notes to the financial statements.

Page 36

Jackson National Separate Account I

Statements of Changes in Net Assets

For the Year Ended December 31, 2011

	JNL/Invesco Small Cap Growth Portfolio			JNL/Ivy Asset Strategy Portfolio			JNL/JPMorgan International Value Portfolio			JNL/JPMorgan MidCap Growth Portfolio			JNL/JPMorgan U.S. Government & Quality Bond Portfolio			JNL/Lazard Emerging Markets Portfolio			JNL/Lazard Mid Cap Equity Portfolio			JNL/M&G Global Basics Portfolio			JNL/M&G Global Leaders Portfolio			JNL/MCM 10 x 10 Portfolio
Operations
Net investment income (loss)	$	(1,663,217	)	$	(7,874,057	)	$	3,187,083		$	(2,013,482	)	$	5,460,179		$	(6,660,828	)	$	(1,743,629	)	$	(217,743	)	$	(174,417	)	$	1,064,366
Net realized gain (loss) on investments		2,260,083			(29,444	)		(22,374,907	)		3,288,239			17,414,207			22,831,060			(5,617,815	)		1,145,118			1,087,846			493,951
Net change in unrealized appreciation
(depreciation) on investments		23,210,987			69,776,444			35,220,380			28,352,874			1,408,126			108,313,323			38,795,672			4,071,918			1,355,254			26,458,803
Net increase (decrease) in net assets
from operations		23,807,853			61,872,943			16,032,556			29,627,631			24,282,512			124,483,555			31,434,228			4,999,293			2,268,683			28,017,120

Contract transactions 1
Purchase payments (Note 4)		29,427,375			395,612,863			49,008,954			26,983,839			102,647,251			217,493,865			27,109,671			11,777,839			6,698,246			40,295,797
Surrenders and terminations		(7,865,197	)		(21,721,881	)		(19,636,508	)		(12,106,653	)		(49,799,466	)		(39,730,316	)		(15,775,306	)		(1,524,278	)		(894,632	)		(14,571,624	)
Transfers between portfolios		8,596,181			249,990,911			(13,163,116	)		11,867,590			25,255,514			139,876,600			3,564,006			3,966,242			2,867,708			2,761,426
Net annuitization transactions		(81,777	)		245,341			54,005			(60,311	)		(430,960	)		(165,530	)		(74,904	)		(6,252	)		-			(1,105	)
Policyholder charges (Note 3)		(165,048	)		(203,954	)		(241,062	)		(189,492	)		(579,368	)		(585,896	)		(165,027	)		(22,426	)		(10,003	)		(390,817	)
Net increase (decrease) in net assets
from contract transactions		29,911,534			623,923,280			16,022,273			26,494,973			77,092,971			316,888,723			14,658,440			14,191,125			8,661,319			28,093,677

Net increase (decrease) in net assets		53,719,387			685,796,223			32,054,829			56,122,604			101,375,483			441,372,278			46,092,668			19,190,418			10,930,002			56,110,797

Net assets beginning of period		86,034,969			157,831,757			270,170,472			115,417,454			389,728,164			531,698,354			150,303,016			23,030,577			11,179,437			172,515,513

Net assets end of period	$	139,754,356		$	843,627,980		$	302,225,301		$	171,540,058		$	491,103,647		$	973,070,632		$	196,395,684		$	42,220,995		$	22,109,439		$	228,626,310


1 Contract unit transactions
Units Outstanding at December 31, 2009		7,001,617			15,362,271			22,142,136			6,504,819			22,457,232			45,413,678			9,389,424			1,898,731			992,793			22,814,389

Units Issued		5,051,265			67,615,715			7,057,858			3,065,019			19,169,679			38,494,939			3,782,632			2,453,085			1,487,151			7,604,050
Units Redeemed		(2,908,940	)		(7,594,013	)		(5,812,034	)		(1,981,825	)		(15,105,303	)		(14,768,338	)		(3,116,911	)		(1,482,301	)		(718,937	)		(4,062,927	)

Units Outstanding at December 31, 2010		9,143,942			75,383,973			23,387,960			7,588,013			26,521,608			69,140,279			10,055,145			2,869,515			1,761,007			26,355,512

See notes to the financial statements.

Page 37

Jackson National Separate Account I

Statements of Changes in Net Assets

For the Year Ended December 31, 2011

	JNL/MCM 25 Portfolio			JNL/MCM Bond Index Portfolio			JNL/MCM Communications Sector Portfolio			JNL/MCM Consumer Brands Sector Portfolio			JNL/MCM Dow 10 Portfolio			JNL/MCM Dow Dividend Portfolio			JNL/MCM European 30 Portfolio			JNL/MCM Financial Sector Portfolio			JNL/MCM Global 15 Portfolio			JNL/MCM Global Alpha Portfolio
Operations
Net investment income (loss)	$	3,514,345		$	5,169,495		$	430,892		$	(540,176	)	$	(5,519,721	)	$	2,959,296		$	(202,742	)	$	(599,288	)	$	(8,320,548	)	$	(357,044	)
Net realized gain (loss) on investments		6,896,526			8,839,419			(1,399,357	)		1,896,953			(14,913,108	)		(25,075,869	)		(308,695	)		861,681			(12,166,698	)		187,095
Net change in unrealized appreciation
(depreciation) on investments		67,968,988			6,187,553			9,790,881			7,836,029			89,994,007			44,743,981			328,297			14,569,187			76,459,387			1,313,355
Net increase (decrease) in net assets
from operations		78,379,859			20,196,467			8,822,416			9,192,806			69,561,178			22,627,408			(183,140	)		14,831,580			55,972,141			1,143,406

Contract transactions 1
Purchase payments (Note 4)		42,629,099			78,635,333			8,030,991			11,161,821			20,978,523			31,155,220			4,918,918			32,471,839			23,148,557			13,589,552
Surrenders and terminations		(35,992,065	)		(41,181,371	)		(3,262,477	)		(3,221,223	)		(29,773,850	)		(14,633,889	)		(638,401	)		(10,832,738	)		(43,290,026	)		(747,631	)
Transfers between portfolios		20,044,570			9,991,603			6,697,676			24,534,947			(21,522,005	)		(16,359,655	)		511,948			(3,337,162	)		(83,183,840	)		18,151,829
Net annuitization transactions		(260,133	)		32,457			(4,637	)		(1,861	)		(190,438	)		12,741			-			(9,836	)		(304,044	)		(39,517	)
Policyholder charges (Note 3)		(522,819	)		(581,589	)		(72,277	)		(65,738	)		(452,124	)		(315,053	)		(18,211	)		(222,461	)		(684,293	)		(7,736	)
Net increase (decrease) in net assets
from contract transactions		25,898,652			46,896,433			11,389,276			32,407,946			(30,959,894	)		(140,636	)		4,774,254			18,069,642			(104,313,646	)		30,946,497

Net increase (decrease) in net assets		104,278,511			67,092,900			20,211,692			41,600,752			38,601,284			22,486,772			4,591,114			32,901,222			(48,341,505	)		32,089,903

Net assets beginning of period		383,253,409			466,312,128			39,176,677			33,163,363			338,274,025			231,277,334			12,296,011			139,932,756			571,292,504			6,516,233

Net assets end of period	$	487,531,920		$	533,405,028		$	59,388,369		$	74,764,115		$	376,875,309		$	253,764,106		$	16,887,125		$	172,833,978		$	522,950,999		$	38,606,136


1 Contract unit transactions
Units Outstanding at December 31, 2009		33,485,406			37,261,915			8,725,097			3,575,518			50,000,493			37,581,764			1,029,885			20,880,689			45,964,562			661,825

Units Issued		11,812,818			12,323,068			8,037,305			5,266,818			7,709,257			9,607,555			1,277,372			10,702,342			3,920,288			3,847,975
Units Redeemed		(10,131,602	)		(8,808,650	)		(5,850,310	)		(2,201,024	)		(12,390,118	)		(9,868,598	)		(901,622	)		(8,634,520	)		(12,646,845	)		(750,577	)

Units Outstanding at December 31, 2010		35,166,622			40,776,333			10,912,092			6,641,312			45,319,632			37,320,721			1,405,635			22,948,511			37,238,005			3,759,223

See notes to the financial statements.

Page 38

Jackson National Separate Account I

Statements of Changes in Net Assets

For the Year Ended December 31, 2011

	JNL/MCM			JNL/MCM			JNL/MCM			JNL/MCM			JNL/MCM			JNL/MCM			JNL/MCM NYSE			JNL/MCM			JNL/MCM			JNL/MCM
	Healthcare			Index 5			International			JNL 5			JNL Optimized			Nasdaq 25			International			Oil & Gas			Pacific Rim 30			S&P 10
	Sector Portfolio			Portfolio			Index Portfolio			Portfolio			5 Portfolio			Portfolio			25 Portfolio			Sector Portfolio			Portfolio			Portfolio
Operations
Net investment income (loss)	$	(844,486	)	$	(849,288	)	$	1,407,099		$	13,902,647		$	1,461,131		$	(1,387,070	)	$	502,153		$	(2,727,303	)	$	(407,688	)	$	(4,506,775	)
Net realized gain (loss) on investments		(1,514,599	)		4,342,406			(14,275,220	)		(252,675,964	)		(15,460,106	)		2,087,428			(3,783,434	)		(19,217,762	)		677,685			(27,837,467	)
Net change in unrealized appreciation
(depreciation) on investments		4,935,251			30,336,057			33,593,462			659,206,299			55,933,365			13,184,354			1,776,000			101,100,327			2,500,475			55,164,494
Net increase (decrease) in net assets
from operations		2,576,166			33,829,175			20,725,341			420,432,982			41,934,390			13,884,712			(1,505,281	)		79,155,262			2,770,472			22,820,252

Contract transactions 1
Purchase payments (Note 4)		30,332,664			84,880,331			63,262,413			166,935,096			36,185,992			18,452,549			11,769,028			94,791,321			10,297,328			7,616,196
Surrenders and terminations		(10,463,176	)		(11,556,932	)		(35,193,850	)		(192,465,696	)		(22,490,872	)		(5,676,586	)		(5,229,548	)		(33,545,215	)		(1,340,158	)		(23,994,703	)
Transfers between portfolios		(14,264,173	)		13,354,438			(22,867,892	)		(352,639,149	)		(40,850,215	)		3,276,534			10,383,387			19,394,436			8,116,344			(36,678,341	)
Net annuitization transactions		100,404			351,838			(159,855	)		(672,573	)		(89,664	)		(5,743	)		157,427			(218,803	)		-			(217,388	)
Policyholder charges (Note 3)		(182,209	)		(186,445	)		(524,014	)		(3,711,966	)		(455,312	)		(120,182	)		(89,017	)		(622,623	)		(16,938	)		(361,640	)
Net increase (decrease) in net assets
from contract transactions		5,523,510			86,843,230			4,516,802			(382,554,288	)		(27,700,071	)		15,926,572			16,991,277			79,799,116			17,056,576			(53,635,876	)

Net increase (decrease) in net assets		8,099,676			120,672,405			25,242,143			37,878,694			14,234,319			29,811,284			15,485,996			158,954,378			19,827,048			(30,815,624	)

Net assets beginning of period		151,086,078			181,699,369			448,711,296			3,112,602,983			394,466,153			84,028,601			79,880,093			434,344,840			15,721,732			320,366,498

Net assets end of period	$	159,185,754		$	302,371,774		$	473,953,439		$	3,150,481,677		$	408,700,472		$	113,839,885		$	95,366,089		$	593,299,218		$	35,548,780		$	289,550,874


1 Contract unit transactions
Units Outstanding at December 31, 2009		13,467,976			21,565,799			31,012,282			325,622,120			45,827,246			8,721,292			9,718,562			16,523,685			1,345,363			38,784,490

Units Issued		5,342,057			14,590,439			7,278,016			20,772,760			5,654,713			4,759,747			5,803,669			7,793,686			2,441,308			3,611,252
Units Redeemed		(5,000,428	)		(4,729,052	)		(7,198,306	)		(60,610,935	)		(9,063,111	)		(3,260,713	)		(4,002,786	)		(5,158,545	)		(1,051,396	)		(10,503,157	)

Units Outstanding at December 31, 2010		13,809,605			31,427,186			31,091,992			285,783,945			42,418,848			10,220,326			11,519,445			19,158,826			2,735,275			31,892,585

See notes to the financial statements.

Page 39

Jackson National Separate Account I

Statements of Changes in Net Assets

For the Year Ended December 31, 2011

	JNL/MCM S&P 24 Portfolio			JNL/MCM S&P 400 MidCap Index Portfolio			JNL/MCM S&P 500 Index Portfolio			JNL/MCM S&P SMid 60 Portfolio			JNL/MCM Select Small-Cap Portfolio			JNL/MCM Small Cap Index Portfolio			JNL/MCM Technology Sector Portfolio			JNL/MCM Value Line 30 Portfolio			JNL/MCM VIP Portfolio			JNL/ Oppenheimer Global Growth Portfolio
Operations
Net investment income (loss)	$	(465,902	)	$	(3,641,986	)	$	(1,240,765	)	$	(2,302,338	)	$	(3,059,519	)	$	(3,725,696	)	$	(3,408,834	)	$	(5,189,048	)	$	1,843,956		$	(1,472,376	)
Net realized gain (loss) on investments		447,095			7,489,223			10,825,854			9,719,355			(53,259,905	)		5,702,544			14,340,170			(41,636,729	)		(24,583,509	)		(5,607,088	)
Net change in unrealized appreciation
(depreciation) on investments		5,369,332			81,007,045			79,023,190			13,680,426			89,184,784			81,536,481			9,376,975			137,471,650			56,612,168			34,538,577
Net increase (decrease) in net assets
from operations		5,350,525			84,854,282			88,608,279			21,097,443			32,865,360			83,513,329			20,308,311			90,645,873			33,872,615			27,459,113

Contract transactions 1
Purchase payments (Note 4)		8,931,680			61,383,840			128,062,816			30,605,275			13,449,346			50,600,622			57,795,952			28,640,248			14,823,317			50,286,854
Surrenders and terminations		(1,505,218	)		(33,507,481	)		(60,175,067	)		(8,101,909	)		(22,343,256	)		(34,657,492	)		(15,031,344	)		(32,085,835	)		(18,064,434	)		(15,911,248	)
Transfers between portfolios		220,537			(5,882,258	)		(7,227,224	)		8,149,766			(33,411,154	)		(17,377,566	)		(15,292,497	)		(63,521,186	)		(28,164,760	)		11,793,790
Net annuitization transactions		-			(222,583	)		(413,822	)		-			(92,244	)		(361,244	)		(48,834	)		3,921			150,333			25,658
Policyholder charges (Note 3)		(23,670	)		(485,244	)		(749,902	)		(131,693	)		(347,310	)		(462,724	)		(271,792	)		(681,101	)		(351,197	)		(206,089	)
Net increase (decrease) in net assets
from contract transactions		7,623,329			21,286,274			59,496,801			30,521,439			(42,744,618	)		(2,258,404	)		27,151,485			(67,643,953	)		(31,606,741	)		45,988,965

Net increase (decrease) in net assets		12,973,854			106,140,556			148,105,080			51,618,882			(9,879,258	)		81,254,925			47,459,796			23,001,920			2,265,874			73,448,078

Net assets beginning of period		32,401,072			359,664,317			662,896,119			123,129,151			288,802,419			363,255,877			225,291,853			524,475,688			282,986,302			173,881,213

Net assets end of period	$	45,374,926		$	465,804,873		$	811,001,199		$	174,748,033		$	278,923,161		$	444,510,802		$	272,751,649		$	547,477,608		$	285,252,176		$	247,329,291


1 Contract unit transactions
Units Outstanding at December 31, 2009		3,883,607			26,848,856			68,254,472			12,791,691			25,618,156			30,126,306			36,400,776			50,622,953			28,696,398			14,359,000

Units Issued		2,388,381			8,636,373			24,216,384			10,729,769			3,202,570			8,187,576			23,071,062			6,366,098			2,557,320			6,792,852
Units Redeemed		(1,541,713	)		(7,489,471	)		(18,275,291	)		(8,255,715	)		(7,061,314	)		(8,699,380	)		(19,800,755	)		(13,147,985	)		(5,797,570	)		(3,244,718	)

Units Outstanding at December 31, 2010		4,730,275			27,995,758			74,195,565			15,265,745			21,759,412			29,614,502			39,671,083			43,841,066			25,456,148			17,907,134

See notes to the financial statements.

Page 40

Jackson National Separate Account I

Statements of Changes in Net Assets

For the Year Ended December 31, 2010

	JNL/PAM			JNL/PAM			JNL/PIMCO			JNL/PIMCO			JNL/ PPM America			JNL/ PPM America			JNL/ PPM America			JNL/ PPM America			JNL/ Red Rocks Listed
	Asia ex-Japan			China-India			Real Return			Total Return			High Yield			Mid Cap Value			Small Cap Value			Value Equity			Private Equity			JNL/S&P 4
	Portfolio			Portfolio			Portfolio			Bond Portfolio			Bond Portfolio			Portfolio			Portfolio			Portfolio			Portfolio			Portfolio
Operations
Net investment income (loss)	$	(1,548,162	)	$	(4,123,626	)	$	(1,174,359	)	$	15,442,669		$	34,415,871		$	(818,655	)	$	(522,459	)	$	(294,182	)	$	(2,337,731	)	$	(10,810,623	)
Net realized gain (loss) on investments		5,529,262			19,525,314			40,016,646			134,697,584			33,249,167			1,417,951			3,497,118			(3,449,148	)		8,026,236			30,098,234
Net change in unrealized appreciation
(depreciation) on investments		12,476,661			16,060,006			6,074,912			(39,522,198	)		7,458,282			9,683,861			4,008,311			17,588,027			35,804,856			60,229,060
Net increase (decrease) in net assets
from operations		16,457,761			31,461,694			44,917,199			110,618,055			75,123,320			10,283,157			6,982,970			13,844,697			41,493,361			79,516,671

Contract transactions 1
Purchase payments (Note 4)		28,723,219			97,173,571			252,690,592			730,698,500			129,687,039			17,875,513			14,005,776			13,535,879			69,817,491			156,539,832
Surrenders and terminations		(6,839,815	)		(13,663,606	)		(64,779,161	)		(193,356,474	)		(49,215,843	)		(3,844,804	)		(2,328,482	)		(10,891,322	)		(8,578,014	)		(37,068,544	)
Transfers between portfolios		6,358,513			31,434,642			45,618,196			180,937,278			75,473,140			39,839,857			24,961,929			1,628,328			65,707,966			6,940,007
Net annuitization transactions		-			(11,073	)		70,923			99,307			(271,074	)		(4,786	)		(4,669	)		(59,471	)		(12,777	)		(11,022	)
Policyholder charges (Note 3)		(78,123	)		(227,812	)		(913,068	)		(2,738,378	)		(496,559	)		(97,918	)		(44,049	)		(127,568	)		(107,728	)		(666,619	)
Net increase (decrease) in net assets
from contract transactions		28,163,794			114,705,722			232,687,482			715,640,233			155,176,703			53,767,862			36,590,505			4,085,846			126,826,938			125,733,654

Net increase (decrease) in net assets		44,621,555			146,167,416			277,604,681			826,258,288			230,300,023			64,051,019			43,573,475			17,930,543			168,320,299			205,250,325

Net assets beginning of period		96,476,093			216,740,394			694,975,054			1,673,846,310			491,309,807			19,224,995			14,748,241			88,888,602			111,569,389			592,013,081

Net assets end of period	$	141,097,648		$	362,907,810		$	972,579,735		$	2,500,104,598		$	721,609,830		$	83,276,014		$	58,321,716		$	106,819,145		$	279,889,688		$	797,263,406


1 Contract unit transactions
Units Outstanding at December 31, 2009		12,008,915			29,002,157			58,298,901			99,987,448			37,428,039			2,358,718			1,794,860			6,119,373			13,635,873			63,553,444

Units Issued		9,706,301			27,276,821			35,745,939			76,736,997			30,998,277			9,302,217			6,486,362			2,328,693			18,674,639			27,144,504
Units Redeemed		(6,771,405	)		(14,083,166	)		(17,213,900	)		(36,648,942	)		(20,524,032	)		(3,652,177	)		(2,630,900	)		(2,165,416	)		(4,809,897	)		(14,332,721	)

Units Outstanding at December 31, 2010		14,943,811			42,195,812			76,830,940			140,075,503			47,902,284			8,008,758			5,650,322			6,282,650			27,500,615			76,365,227

See notes to the financial statements.

Page 41

Jackson National Separate Account I

Statements of Changes in Net Assets

For the Year Ended December 31, 2010

	JNL/S&P Competitive Advantage Portfolio			JNL/S&P Disciplined Growth Portfolio			JNL/S&P Disciplined Moderate Portfolio			JNL/S&P Disciplined Moderate Growth Portfolio			JNL/S&P Dividend Income & Growth Portfolio			JNL/S&P Intrinsic Value Portfolio			JNL/ S&P Managed Aggressive Growth Portfolio			JNL/ S&P Managed Conservative Portfolio			JNL/ S&P Managed Growth Portfolio			JNL/ S&P Managed Moderate Portfolio
Operations
Net investment income (loss)	$	(709,545	)	$	(124,701	)	$	(1,013,534	)	$	(815,560	)	$	286,107		$	(871,289	)	$	(4,387,987	)	$	7,052,786		$	(7,665,713	)	$	6,780,649
Net realized gain (loss) on investments		9,372,258			753,598			818,172			1,788,111			12,066,487			17,955,948			(2,780,622	)		6,198,849			(13,391,559	)		6,328,652
Net change in unrealized appreciation
(depreciation) on investments		(732,546	)		10,847,616			23,694,003			31,490,352			9,498,433			(6,399,741	)		94,296,568			36,141,004			247,387,260			102,250,641
Net increase (decrease) in net assets
from operations		7,930,167			11,476,513			23,498,641			32,462,903			21,851,027			10,684,918			87,127,959			49,392,639			226,329,988			115,359,942

Contract transactions 1
Purchase payments (Note 4)		19,016,456			38,907,937			104,653,846			113,086,930			55,247,224			25,857,749			144,602,802			259,409,247			435,205,232			457,451,757
Surrenders and terminations		(4,982,923	)		(5,092,394	)		(13,129,953	)		(12,051,239	)		(6,555,494	)		(6,034,847	)		(43,148,550	)		(61,507,654	)		(108,374,591	)		(82,697,332	)
Transfers between portfolios		(27,530,520	)		8,367,978			48,873,624			23,883,237			66,345,706			(11,353,168	)		(1,895,373	)		66,846,437			65,120,206			95,863,099
Net annuitization transactions		161,676			-			(108,091	)		(305,425	)		194,142			183,675			(149,822	)		(107,534	)		(149,419	)		(414,453	)
Policyholder charges (Note 3)		(67,572	)		(61,629	)		(126,188	)		(173,429	)		(104,565	)		(138,505	)		(652,681	)		(710,955	)		(1,389,754	)		(1,029,180	)
Net increase (decrease) in net assets
from contract transactions		(13,402,883	)		42,121,892			140,163,238			124,440,074			115,127,013			8,514,904			98,756,376			263,929,541			390,411,674			469,173,891

Net increase (decrease) in net assets		(5,472,716	)		53,598,405			163,661,879			156,902,977			136,978,040			19,199,822			185,884,335			313,322,180			616,741,662			584,533,833

Net assets beginning of period		88,880,352			74,917,526			158,926,421			194,086,483			79,218,179			86,340,798			508,673,317			572,712,595			1,329,575,445			930,311,121

Net assets end of period	$	83,407,636		$	128,515,931		$	322,588,300		$	350,989,460		$	216,196,219		$	105,540,620		$	694,557,652		$	886,034,775		$	1,946,317,107		$	1,514,844,954


1 Contract unit transactions
Units Outstanding at December 31, 2009		9,096,128			9,670,525			17,855,311			23,763,299			9,157,988			8,940,997			40,160,675			51,868,517			102,210,567			82,389,945

Units Issued		2,926,849			6,912,365			21,208,100			20,869,650			14,255,655			5,945,999			14,526,189			34,990,203			43,013,028			51,461,724
Units Redeemed		(4,334,256	)		(1,663,951	)		(5,968,986	)		(6,169,836	)		(1,962,024	)		(5,186,917	)		(7,294,636	)		(12,108,291	)		(15,088,339	)		(11,829,112	)

Units Outstanding at December 31, 2010		7,688,721			14,918,939			33,094,425			38,463,113			21,451,619			9,700,079			47,392,228			74,750,429			130,135,256			122,022,557

See notes to the financial statements.

Page 42

Jackson National Separate Account I

Statements of Changes in Net Assets

For the Year Ended December 31, 2010

	JNL/
	S&P Managed			JNL/S&P			JNL/Select			JNL/Select			JNL/			JNL/T. Rowe			JNL/T. Rowe			JNL/T. Rowe			JNL/T. Rowe
	Moderate			Total Yield			Balanced			Money Market			Select Value			Price Established			Price Mid-Cap			Price Short-Term			Price Value
	Growth Portfolio			Portfolio			Portfolio			Portfolio			Portfolio			Growth Portfolio			Growth Portfolio			Bond Portfolio			Portfolio
Operations
Net investment income (loss)	$	(3,563,998	)	$	(534,427	)	$	(692,963	)	$	(12,029,875	)	$	(1,589,966	)	$	(9,364,396	)	$	(9,740,392	)	$	(539,841	)	$	(1,958,177	)
Net realized gain (loss) on investments		(1,650,484	)		3,242,570			4,646,200			-			74,476			5,296,183			32,702,939			745,172			(9,459,387	)
Net change in unrealized appreciation
(depreciation) on investments		246,714,891			(945,590	)		88,386,397			-			37,108,190			100,153,006			155,723,095			2,558,139			59,019,435
Net increase (decrease) in net
assets from operations		241,500,409			1,762,553			92,339,634			(12,029,875	)		35,592,700			96,084,793			178,685,642			2,763,470			47,601,871

Contract transactions 1
Purchase payments (Note 4)		805,004,501			14,509,167			417,143,922			336,459,482			64,456,225			139,814,313			185,982,229			91,763,401			59,323,595
Surrenders and terminations		(136,901,587	)		(3,398,367	)		(66,668,196	)		(155,558,031	)		(21,599,330	)		(51,951,190	)		(53,381,936	)		(24,931,927	)		(33,870,455	)
Transfers between portfolios		97,204,713			(1,542,606	)		87,357,187			(302,895,410	)		29,481,962			51,382,640			80,967,735			83,045,694			19,732,230
Net annuitization transactions		(708,147	)		191,317			(58,368	)		(634,449	)		(216,331	)		(382,051	)		(214,276	)		(601,933	)		269,465
Policyholder charges (Note 3)		(1,579,564	)		(67,024	)		(765,519	)		(2,370,292	)		(322,972	)		(541,314	)		(615,398	)		(326,458	)		(324,572	)
Net increase (decrease) in net assets
from contract transactions		763,019,916			9,692,487			437,009,026			(124,998,700	)		71,799,554			138,322,398			212,738,354			148,948,777			45,130,263

Net increase (decrease) in net assets		1,004,520,325			11,455,040			529,348,660			(137,028,575	)		107,392,254			234,407,191			391,423,996			151,712,247			92,732,134

Net assets beginning of period		1,625,058,958			53,500,549			698,799,207			813,942,764			245,684,757			548,364,407			590,369,343			182,385,335			318,777,332

Net assets end of period	$	2,629,579,283		$	64,955,589		$	1,228,147,867		$	676,914,189		$	353,077,011		$	782,771,598		$	981,793,339		$	334,097,582		$	411,509,466


1 Contract unit transactions
Units Outstanding at December 31, 2009		122,140,399			5,975,997			27,589,435			64,606,225			13,947,236			22,175,253			16,143,043			17,700,266			25,158,040

Units Issued		71,620,389			5,213,386			20,315,348			50,622,707			6,589,029			9,468,254			8,355,845			24,061,031			8,818,735
Units Redeemed		(17,755,268	)		(4,498,368	)		(4,071,219	)		(60,800,966	)		(2,675,715	)		(4,485,632	)		(3,489,728	)		(9,826,555	)		(5,578,407	)

Units Outstanding at December 31, 2010		176,005,520			6,691,015			43,833,564			54,427,966			17,860,550			27,157,875			21,009,160			31,934,742			28,398,368

See notes to the financial statements.

Page 43

Jackson National Separate Account I

Notes to Financial Statements

Note 1 – Organization

Jackson National Life Insurance Company (“Jackson”) established Jackson National Separate Account I (the “Separate Account”) on June 14, 1993. The Separate Account commenced operations on October 16, 1995, and is registered under the Investment Company Act of 1940 as a unit investment trust.

The Separate Account assets legally belong to Jackson and the obligations under the contracts are the obligation of Jackson. However, the contract assets in the Separate Account are not chargeable with liabilities arising out of any other business Jackson may conduct.

The Separate Account receives and invests, based on the directions for the contract holder, net premiums for individual flexible premium variable annuity contracts issued by Jackson. The contracts can be purchased on a non-tax qualified basis or in connection with certain plans qualifying for favorable federal income tax treatment. The Separate Account contains one hundred three (103) Portfolios as of December 31, 2011, each of which invests in the following series of mutual funds (“Funds”):

JNL Series Trust
JNL Disciplined Growth Fund	JNL/Goldman Sachs Core Plus Bond Fund	JNL/PAM Asia ex-Japan Fund
JNL Disciplined Moderate Fund	JNL/Goldman Sachs Emerging Markets Debt Fund(1)	JNL/PAM China-India Fund
JNL Disciplined Moderate Growth Fund	JNL/Goldman Sachs Mid Cap Value Fund	JNL/PIMCO Real Return Fund
JNL Institutional Alt 20 Fund	JNL/Goldman Sachs U.S. Equity Flex Fund	JNL/PIMCO Total Return Bond Fund
JNL Institutional Alt 35 Fund	JNL/Invesco Global Real Estate Fund	JNL/PPM America Floating Rate Income Fund
JNL Institutional Alt 50 Fund	JNL/Invesco International Growth Fund	JNL/PPM America High Yield Bond Fund
JNL Institutional Alt 65 Fund(1)	JNL/Invesco Large Cap Growth Fund	JNL/PPM America Mid Cap Value Fund
JNL/American Funds Blue Chip Income and Growth Fund	JNL/Invesco Small Cap Growth Fund	JNL/PPM America Small Cap Value Fund
JNL/American Funds Global Bond Fund	JNL/Ivy Asset Strategy Fund	JNL/PPM America Value Equity Fund
JNL/American Funds Global Small Capitalization Fund	JNL/JPMorgan International Value Fund	JNL/Red Rocks Listed Private Equity Fund(1)
JNL/American Funds Growth-Income Fund	JNL/JPMorgan MidCap Growth Fund	JNL/S&P 4 Fund
JNL/American Funds International Fund	JNL/JPMorgan U.S. Government & Quality Bond Fund	JNL/S&P Competitive Advantage Fund
JNL/American Funds New World Fund	JNL/Lazard Emerging Markets Fund(1)	JNL/S&P Dividend Income & Growth Fund
JNL/BlackRock Commodity Securities Fund	JNL/Lazard Mid Cap Equity Fund	JNL/S&P Intrinsic Value Fund
JNL/BlackRock Global Allocation Fund(2)	JNL/M&G Global Basics Fund	JNL/S&P Managed Aggressive Growth Fund
JNL/Brookfield Global Infrastructure Fund	JNL/M&G Global Leaders Fund	JNL/S&P Managed Conservative Fund
JNL/Capital Guardian Global Balanced Fund	JNL/MCM 10 x 10 Fund*	JNL/S&P Managed Growth Fund
JNL/Capital Guardian Global Diversified Research Fund	JNL/MCM Bond Index Fund*	JNL/S&P Managed Moderate Fund
JNL/Capital Guardian U.S. Growth Equity Fund	JNL/MCM Emerging Markets Index Fund*	JNL/S&P Managed Moderate Growth Fund
JNL/Eagle Core Equity Fund	JNL/MCM European 30 Fund*	JNL/S&P Total Yield Fund
JNL/Eagle SmallCap Equity Fund	JNL/MCM Global Alpha Fund(1)*	JNL/T. Rowe Price Established Growth Fund
JNL/Franklin Templeton Founding Strategy Fund	JNL/MCM Index 5 Fund*	JNL/T. Rowe Price Mid-Cap Growth Fund
JNL/Franklin Templeton Global Growth Fund	JNL/MCM International Index Fund*	JNL/T. Rowe Price Short-Term Bond Fund
JNL/Franklin Templeton Global Multisector Bond Fund	JNL/MCM Pacific Rim 30 Fund*	JNL/T. Rowe Price Value Fund
JNL/Franklin Templeton Income Fund	JNL/MCM S&P 400 MidCap Index Fund*	JNL/WMC Balanced Fund
JNL/Franklin Templeton International Small Cap Growth Fund	JNL/MCM S&P 500 Index Fund*	JNL/WMC Money Market Fund
JNL/Franklin Templeton Mutual Shares Fund	JNL/MCM Small Cap Index Fund*	JNL/WMC Value Fund
JNL/Franklin Templeton Small Cap Value Fund	JNL/Oppenheimer Global Growth Fund

Page 44

Jackson National Separate Account I

Notes to Financial Statements

Note 1 – Organization (continued)

JNL Variable Fund LLC
JNL/MCM 25 Fund*	JNL/MCM Healthcare Sector Fund*	JNL/MCM S&PÒ 24 Fund*
JNL/MCM Communications Sector Fund*	JNL/MCM JNL 5 Fund*	JNL/MCM S&PÒ SMid 60 Fund*
JNL/MCM Consumer Brands Sector Fund*	JNL/MCM JNL Optimized 5 Fund*	JNL/MCM Select Small-Cap Fund*
JNL/MCM Dow SM 10 Fund*	JNL/MCM NasdaqÒ 25 Fund*	JNL/MCM Technology Sector Fund*
JNL/MCM Dow SM Dividend Fund*	JNL/MCM NYSEÒ International 25 Fund*	JNL/MCM Value LineÒ 30 Fund*
JNL/MCM Financial Sector Fund*	JNL/MCM Oil & Gas Sector Fund*	JNL/MCM VIP Fund*
JNL/MCM Global 15 Fund*	JNL/MCM S&PÒ 10 Fund*

Jackson National Asset Management, LLC, a wholly-owned subsidiary of Jackson, serves as investment adviser for all the Funds and receives a fee for its services from each of the Funds.

During the year ended December 31, 2011, the following Funds changed names:

PRIOR PORTFOLIO NAME	CURRENT PORTFOLIO NAME	EFFECTIVE DATE
JNL/Select Balanced Fund	JNL/WMC Balanced Fund	May 2, 2011
JNL/Select Money Market Fund	JNL/WMC Money Market Fund	May 2, 2011
JNL/Select Value Fund	JNL/WMC Value Fund	May 2, 2011
JNL/S&P Disciplined Growth Fund	JNL Disciplined Growth Fund(3)	August 29, 2011
JNL/S&P Disciplined Moderate Fund	JNL Disciplined Moderate Fund(3)	August 29, 2011
JNL/S&P Disciplined Moderate Growth Fund	JNL Disciplined Moderate Growth Fund(3)	August 29, 2011

(1) Effective August 29, 2011, JNL Institutional Alt 65 Fund, JNL/Goldman Sachs Emerging Markets Debt Fund, JNL/Lazard Emerging Markets Fund, JNL/Mellon Capital Management Global Alpha Fund, and JNL/Red Rocks Listed Private Equity Fund closed to new investors but remained open to the JNL Series Trust's fund of funds.

(2) Effective February 22, 2011, JNL/BlackRock Global Allocation Fund was removed as an investment option for all new investment allocations, but any current investment balances as of February 22, 2011, remained in the Fund. Prior to August 27, 2011, the Fund had a Master-Feeder structure and invested substantially all its assets in shares of BlackRock Global Allocation Portfolio, a series of BlackRock Series Fund, Inc. At close of business August 26, 2011, the Fund received a pro rata share of cash, securities, and receivables from the BlackRock Global Allocation Portfolio in a complete liquidation of its interest in the Master Fund. At this time the Fund was reorganized from a Master-Feeder structure to a Sub-Advised Fund and began investing directly in securities rather than through the Master Fund. Effective August 29, 2011, JNL/BlackRock Global Allocation Fund was reopened to all investors.

(3) These name changes are due to changes in sub-adviser.

* MCM denotes the sub-adviser Mellon Capital Management throughout these financial statements.

Page 45

Jackson National Separate Account I

Notes to Financial Statements

Note 2 – Significant Accounting Policies

The following is a summary of significant accounting policies followed by the Separate Account in the preparation of its financial statements.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Investments

The Separate Account’s investments in the corresponding series of mutual funds are stated at the closing net asset values of the respective Funds. The average cost method is used in determining the cost of the shares sold on withdrawals by the Separate Account. Investments in the Funds are recorded on trade date. Realized gain distributions and dividend distributions received from the Funds are reinvested in additional shares of the Funds and are recorded as income or gain to the Separate Account on the ex-dividend date.

Federal Income Taxes

The operations of the Separate Account are included in the federal income tax return of Jackson, which is taxed as a “life insurance company” under the provisions of the Internal Revenue Code. Under current law, no federal income taxes are payable with respect to the Separate Account. Therefore, no federal income tax has been provided.

Topic 820 in the Accounting Standards Codification (ASC 820), “Fair Value Measurements”

This standard establishes a single authoritative definition of fair value, sets out a framework for measuring fair value and requires additional disclosures about fair value measurements. The changes to current GAAP from the application of this statement relate to the definition of fair value, the methods used to measure fair value, and expanded disclosures about fair value measurements.

Various inputs are used in determining the value of a Fund’s investments under ASC 820 guidance. The inputs are summarized into three broad categories. Level 1 includes valuations based on quoted prices of identical securities in active markets. Level 2 includes valuations for which all significant inputs are observable, either directly or indirectly. Direct observable inputs include closing prices of similar securities in active markets or closing prices for identical or similar securities in non-active markets. Indirect observable inputs include factors such as interest rates, yield curves, prepayment speeds, and credit risks. Level 3 includes valuations based on inputs that are unobservable and significant to the fair value measurement including a Fund’s own assumptions in determining the fair value of the investment. The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. As of December 31, 2011, all of the Separate Account's investments are in funds for which quoted prices are available in an active market. Therefore, all investments have been categorized as Level 1. The characterization of the underlying securities held by the Funds in accordance with ASC 820 differs from the characterization of an investment in the fund.

ASU No. 2011-04 “Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and International Financial Reporting Standards”

In May 2011 FASB released ASU No. 2011-04 “Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and International Financial Reporting Standards”. ASU 2011-04 further clarifies fair value measurement principles and requires additional disclosures. Effective for interim and annual periods beginning after December 15, 2011, entities will need to disclose the amounts and reasons for any transfers between Level 1 and Level 2 securities; quantitative information relating to significant observable inputs, a narrative description of the valuation process, and a narrative description of the sensitivity of the fair value measurements to changes in unobservable or Level 3 valuation inputs.

For the year ended December 31, 2011, there were no transfers between Level 1 and Level 2 securities.

Page 46

Jackson National Separate Account I

Notes to Financial Statements

Note 3 – Policy Charges

Charges are deducted from the Separate Account and remitted to Jackson, to compensate Jackson for providing the insurance benefits set forth in the contracts, administering the contracts, distributing the contracts, and assuming certain risks in connection with the contracts.

Policyholder Charges

Contract Maintenance Charge

An annual contract maintenance charge of $35 - $50 is charged against each contract to reimburse Jackson for expenses incurred in establishing and maintaining records relating to the contract. The contract maintenance charge is assessed on each anniversary of the contract date that occurs prior to the annuity date. This charge is only imposed if the contract value is less than $50,000 on the date when the charge is assessed. The charge is deducted by redeeming units. For the years ended December 31, 2011 and 2010, contract maintenance charges were assessed in the amount of $2,870,556 and $6,719,734, respectively.

Transfer Charge

A transfer charge of $25 will apply to transfers made by contract holders between the portfolios in excess of 15 transfers in a contract year. Jackson may waive the transfer charge in connection with pre-authorized automatic transfer programs, or in those states where a lesser charge is required. This charge will be deducted from the amount transferred prior to the allocation to a different portfolio. For the years ended December 31, 2011 and 2010, transfer charges were assessed in the amount of $21,848 and $57,988, respectively.

Surrender or Contingent Deferred Sales Charge

During the first three to nine contract years, certain contracts include a provision for a charge upon the surrender or partial surrender of the contract. The amount assessed under the contract terms, if any, depends upon the cost associated with distributing the particular contracts. The amount, if any, is determined based on a number of factors, including the amount withdrawn, the contract year of surrender, or the number and amount of withdrawals in a calendar year. The surrender charges are assessed by Jackson and withheld from the proceeds of the withdrawals. For the years ended December 31, 2011 and 2010, surrender charges were assessed in the amount of $37,748,144 and $31,960,116, respectively.

Optional Benefit Charges

Guaranteed Minimum Income Benefit Charge. If this benefit has been selected, Jackson will assess an annual charge of 0.40% - 0.87%, depending on the product, of the Guaranteed Minimum Income Benefit (GMIB) base. The charge will be deducted each calendar quarter from the contract value by redeeming units.

Guaranteed Minimum Accumulation Benefit Charge. If this benefit has been selected, Jackson will assess an annual charge of 1.00% - 1.02% of the Guaranteed Value (GV). The charge will be deducted each calendar quarter from the contract value by redeeming units.

Guaranteed Minimum Withdrawal Benefit Charge. If this benefit has been selected, Jackson will assess an annual charge of 0.50% - 3.00%, depending on the product, of the Guaranteed Withdrawal Balance (GWB). The charge will be deducted each calendar quarter from the contract value by redeeming units.

Guaranteed Minimum Death Benefit Charge. If any of the optional death benefits are selected that are available under the Contract, Jackson will assess an annual charge of 0.60% - 1.80%, depending on product, of the Death Benefit base. The charge will be deducted each contract quarter from the contract value by redeeming units.

Page 47

Jackson National Separate Account I

Notes to Financial Statements

Note 3 – Policy Charges (continued)

Asset-based Charges

Insurance Charges

Jackson deducts a daily charge for administrative expenses from the net assets of the Separate Account equivalent to an annual rate of 0.15%. In designated products, this expense is waived for initial contributions greater than $1 million, refer to the product prospectus for eligibility. The administration charge is designed to reimburse Jackson for expenses incurred in administering the Separate Account and its contracts and is assessed through the unit value calculation.

Jackson deducts a daily base contract charge from the net assets of the Separate Account equivalent to an annual rate of 0.15% to 1.65% for the assumption of mortality and expense risks. The mortality risk assumed by Jackson is that the insured may receive benefits greater than those anticipated by Jackson. The expense risk assumed by Jackson is that the actual cost of administering the contracts of the Separate Account may exceed the amount received from the Administration Charge and the Contract Maintenance Charge.

Optional Benefit Charges

Earnings Protection Benefit Charge. If this benefit option has been selected, Jackson will make an additional deduction of 0.20% - 0.45%, depending on the product chosen, on an annual basis of the average daily net asset value of the contract owner’s allocations to the portfolios.

Contract Enhancement Charge. If one of the contract enhancement benefits is selected, then for a period of five to nine contract years, Jackson will make an additional deduction based upon the average daily net asset value of the contract owner’s allocations to the portfolios. The amounts of these charges depend upon the contract enhancements selected and range from 0.395% to 0.832%.

Withdrawal Charge Period. If the optional three, four, or five-year withdrawal charge period feature is selected, Jackson will deduct 0.45%, 0.40%, or 0.30%, respectively, on an annual basis of the average daily net asset value of the contract owner’s allocations to the portfolios.

20% Additional Free Withdrawal Charge. If a contract owner selects the optional feature that permits you to withdraw up to 20% of premiums that are still subject to a withdrawal charge minus earnings during a Contract year without withdrawal charge, Jackson will deduct 0.30% - 0.40% on an annual basis of the average daily net assets value of the contract owner’s allocations to the portfolios.

Optional Death Benefit Charges. If any of the optional death benefits are selected that are available under the Contract, Jackson will make an additional deduction of 0.15% - 0.80% on an annual basis of the average daily net asset value of the contract owner’s allocations to the portfolios, based on the optional death benefit selected.

Premium Taxes

Some states and other governmental entities charge premium taxes or other similar taxes. Jackson pays these taxes and may make a deduction from the value of the contract for them. Premium taxes generally range from 0% to 3.5% depending on the state.

Note 4 – Related Party Transactions

For contract enhancement benefits related to the optional benefits offered, Jackson contributed $122,719,601 and $73,788,281 to the Separate Account in the form of additional premium to contract owners’ accounts for the years ended December 31, 2011 and 2010, respectively. These amounts are included in purchase payments received from contract owners.

Page 48

Jackson National Separate Account I

Notes to Financial Statements

Note 5 – Purchases and Sales of Investments

For the year ended December 31, 2011, purchases and proceeds from sales of investments are as follows:

JNL Series Trust

	Purchases		Proceeds from Sales			Purchases		Proceeds from Sales
JNL Disciplined Growth Fund	$	98,218,010	$	49,811,849	JNL/Invesco International Growth Fund	$	134,255,143	$	99,966,176
JNL Disciplined Moderate Fund		193,487,361		85,025,858	JNL/Invesco Large Cap Growth Fund		217,806,694		158,767,999
JNL Disciplined Moderate Growth Fund		215,147,210		80,734,295	JNL/Invesco Small Cap Growth Fund		172,445,981		133,607,685
JNL Institutional Alt 20 Fund		432,202,944		118,421,843	JNL/Ivy Asset Strategy Fund		882,540,803		277,373,380
JNL Institutional Alt 35 Fund		758,458,924		206,312,624	JNL/JPMorgan International Value Fund		140,380,100		129,100,457
JNL Institutional Alt 50 Fund		1,105,387,548		293,646,512	JNL/JPMorgan MidCap Growth Fund		164,006,420		116,103,042
JNL Institutional Alt 65 Fund		574,863,869		240,202,976	JNL/JPMorgan U.S. Government & Quality Bond Fund		547,059,181		354,441,149
JNL/American Funds Blue Chip Income and Growth Fund		318,607,968		71,005,332	JNL/Lazard Emerging Markets Fund		377,800,036		426,520,241
JNL/American Funds Global Bond Fund		326,267,067		105,668,848	JNL/Lazard Mid Cap Equity Fund		123,821,532		100,472,386
JNL/American Funds Global Small Capitalization Fund		113,485,832		40,866,066	JNL/M&G Global Basics Fund		46,452,853		26,885,307
JNL/American Funds Growth-Income Fund		355,777,612		77,547,987	JNL/M&G Global Leaders Fund		23,938,324		11,143,549
JNL/American Funds International Fund		171,105,685		37,129,768	JNL/MCM 10 x 10 Fund		85,006,054		59,644,556
JNL/American Funds New World Fund		228,570,086		59,888,730	JNL/MCM Bond Index Fund		263,463,201		215,620,774
JNL/BlackRock Commodity Securities Fund		489,443,095		298,691,655	JNL/MCM Emerging Markets Index Fund		3,359,928		2,574
JNL/BlackRock Global Allocation Fund		438,125,186		104,263,595	JNL/MCM European 30 Fund		29,164,337		22,533,523
JNL/Brookfield Global Infrastructure Fund		971,478		12,746	JNL/MCM Global Alpha Fund		52,939,544		41,331,739
JNL/Capital Guardian Global Balanced Fund		115,593,261		81,682,721	JNL/MCM Index 5 Fund		174,611,070		82,044,048
JNL/Capital Guardian Global Diversified Research Fund		83,476,923		70,167,043	JNL/MCM International Index Fund		158,985,027		155,908,344
JNL/Capital Guardian U.S. Growth Equity Fund		143,973,188		115,803,663	JNL/MCM Pacific Rim 30 Fund		34,762,593		26,263,600
JNL/Eagle Core Equity Fund		88,655,237		59,096,499	JNL/MCM S&P 400 MidCap Index Fund		277,924,526		239,646,825
JNL/Eagle SmallCap Equity Fund		545,863,974		281,174,380	JNL/MCM S&P 500 Index Fund		446,244,164		353,914,465
JNL/Franklin Templeton Founding Strategy Fund		271,927,861		218,742,589	JNL/MCM Small Cap Index Fund		203,850,195		199,669,492
JNL/Franklin Templeton Global Growth Fund		86,138,432		44,348,729	JNL/Oppenheimer Global Growth Fund		157,446,668		90,778,339
JNL/Franklin Templeton Global Multisector Bond Fund		3,209,768		6,986	JNL/PAM Asia ex-Japan Fund		80,514,050		83,968,170
JNL/Franklin Templeton Income Fund		418,534,986		220,282,661	JNL/PAM China-India Fund		195,399,720		164,751,734
JNL/Franklin Templeton International Small Cap Growth Fund		107,369,184		68,116,178	JNL/PIMCO Real Return Fund		971,760,378		472,548,750
JNL/Franklin Templeton Mutual Shares Fund		149,291,737		69,479,072	JNL/PIMCO Total Return Bond Fund		1,531,479,241		1,082,173,636
JNL/Franklin Templeton Small Cap Value Fund		162,239,414		124,577,501	JNL/PPM America Floating Rate Income Fund		214,675,737		85,213,768
JNL/Goldman Sachs Core Plus Bond Fund		332,833,159		227,493,038	JNL/PPM America High Yield Bond Fund		843,671,312		675,012,217
JNL/Goldman Sachs Emerging Markets Debt Fund		236,277,779		228,150,775	JNL/PPM America Mid Cap Value Fund		124,809,452		106,928,019
JNL/Goldman Sachs Mid Cap Value Fund		177,271,058		99,656,851	JNL/PPM America Small Cap Value Fund		87,299,544		66,153,248
JNL/Goldman Sachs U.S. Equity Flex Fund		30,622,001		35,869,707	JNL/PPM America Value Equity Fund		68,054,685		68,843,860
JNL/Invesco Global Real Estate Fund		239,731,787		144,232,323	JNL/Red Rocks Listed Private Equity Fund		335,186,319		182,189,057

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Notes to Financial Statements

Note 5 – Purchases and Sales of Investments (continued)

JNL Series Trust (continued)
	Purchases		Proceeds from Sales			Purchases		Proceeds from Sales
JNL/S&P 4 Fund	$	408,417,052	$	249,438,379	JNL/S&P Total Yield Fund	$	59,783,086	$	36,492,368
JNL/S&P Competitive Advantage Fund		126,985,742		57,970,005	JNL/T. Rowe Price Established Growth Fund		401,324,874		265,567,020
JNL/S&P Dividend Income & Growth Fund		416,918,367		134,317,432	JNL/T. Rowe Price Mid-Cap Growth Fund		696,449,282		371,436,250
JNL/S&P Intrinsic Value Fund		213,277,492		110,795,023	JNL/T. Rowe Price Short-Term Bond Fund		409,647,269		249,905,654
JNL/S&P Managed Aggressive Growth Fund		341,885,396		240,798,943	JNL/T. Rowe Price Value Fund		199,124,528		161,355,161
JNL/S&P Managed Conservative Fund		634,215,995		322,792,514	JNL/WMC Balanced Fund		754,288,936		299,564,866
JNL/S&P Managed Growth Fund		913,104,652		477,297,172	JNL/WMC Money Market Fund		1,836,871,178		1,502,992,398
JNL/S&P Managed Moderate Fund		827,836,074		357,037,863	JNL/WMC Value Fund		148,562,214		127,475,077
JNL/S&P Managed Moderate Growth Fund		1,353,121,930		583,522,773

JNL Variable Fund LLC
	Purchases		Proceeds from Sales			Purchases		Proceeds from Sales
JNL/MCM 25 Fund	$	218,888,001	$	233,129,545	JNL/MCM NasdaqÒ 25 Fund	$	121,243,812	$	87,635,215
JNL/MCM Communications Sector Fund		40,072,394		42,040,381	JNL/MCM NYSEÒ International 25 Fund		70,375,445		72,481,102
JNL/MCM Consumer Brands Sector Fund		90,829,428		62,551,313	JNL/MCM Oil & Gas Sector Fund		561,734,865		355,062,294
JNL/MCM Dow SM 10 Fund		234,901,484		186,669,156	JNL/MCM S&PÒ 10 Fund		66,129,666		108,922,817
JNL/MCM Dow SM Dividend Fund		118,386,268		82,947,979	JNL/MCM S&PÒ 24 Fund		50,241,934		41,659,597
JNL/MCM Financial Sector Fund		100,706,370		98,640,422	JNL/MCM S&PÒ SMid 60 Fund		103,196,486		97,875,090
JNL/MCM Global 15 Fund		90,479,261		176,055,862	JNL/MCM Select Small-Cap Fund		58,352,286		99,605,761
JNL/MCM Healthcare Sector Fund		202,208,174		121,190,180	JNL/MCM Technology Sector Fund		241,817,079		188,552,305
JNL/MCM JNL 5 Fund		352,782,571		685,653,237	JNL/MCM Value LineÒ 30 Fund		120,558,590		190,474,600
JNL/MCM JNL Optimized 5 Fund		71,250,074		111,206,790	JNL/MCM VIP Fund		49,005,034		76,694,892

Note 6 – Subsequent Events

Management has evaluated subsequent events for the Funds through the date the financial statements are available to be issued, and has concluded there are no events that require financial statement disclosure and/or adjustments to the financial statements.

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Notes to Financial Statements

Note 7 - Financial Highlights

The following is a summary for each period in the five-year period ended December 31, 2011 of unit values, total returns and expense ratios for variable annuity contracts with the highest and lowest expense ratios in addition to certain other portfolio data. Unit values for portfolios that do not have any assets at period end are calculated based on the net asset value of the underlying fund less expenses charged directly to the Separate Account.

	JNL Disciplined Growth Portfolio(a)			JNL Disciplined Moderate Portfolio(a)			JNL Disciplined Moderate Growth Portfolio(a)			JNL Institutional Alt 20 Portfolio(b)			JNL Institutional Alt 35 Portfolio(b)			JNL Institutional Alt 50 Portfolio(b)			JNL Institutional Alt 65 Portfolio(b)			JNL/American Funds Blue Chip Income and Growth Portfolio(c)			JNL/American Funds Global Bond Portfolio(c)			JNL/American Funds Global Small Capitalization Portfolio(c)

Highest expense ratio
Period ended December 31, 2011

Unit Value	$	7.585200		$	8.685114		$	8.213126		$	12.897292		$	13.398793		$	13.472850		$	13.866809		$	9.703216		$	10.344191		$	8.538274
Total Return *		-8.17	%***		-2.93	%		-3.93	%		-5.49	%		-6.69	%		-8.00	%		-8.78	%		-4.51	%		0.25	%***		-21.85	%
Ratio of Expenses **		3.145	%		3.695	%		3.145	%		3.06	%		3.05	%		3.61	%		3.61	%		3.36	%		3.16	%		3.06	%

Period ended December 31, 2010

Unit Value	$	8.123943		$	8.947058		$	8.548681		$	13.647188		$	14.360051		$	14.644693		$	15.200878		$	10.161091		$	10.254727		$	10.926025
Total Return *		9.39	%		7.07	%		9.78	%		9.65	%		9.17	%***		10.51	%***		11.74	%		9.13	%***		3.64	%***		15.68	%***
Ratio of Expenses **		3.01	%		3.695	%		3.145	%		3.06	%		3.05	%		3.61	%		3.61	%		3.36	%		2.845	%		3.06	%

Period ended December 31, 2009

Unit Value	$	7.426450		$	8.356204		$	7.787034		$	12.446093		$	12.965341		$	13.272261		$	13.603273			n/a			n/a			n/a
Total Return *		21.67	%		14.37	%		18.97	%		0.62	%***		0.69	%***		-0.06	%***		-0.93	%***		n/a			n/a			n/a
Ratio of Expenses **		3.01	%		3.695	%		3.145	%		3.06	%		2.845	%		3.01	%		3.61	%		n/a			n/a			n/a

Period ended December 31, 2008

Unit Value	$	6.103657		$	7.306311		$	6.545258			n/a			n/a			n/a			n/a			n/a			n/a			n/a
Total Return *		-0.30	%***		-27.88	%***		-36.78	%		n/a			n/a			n/a			n/a			n/a			n/a			n/a
Ratio of Expenses **		3.01	%		3.695	%		3.145	%		n/a			n/a			n/a			n/a			n/a			n/a			n/a

Period ended December 31, 2007

Unit Value	$	10.364266		$	10.396421		$	10.353901			n/a			n/a			n/a			n/a			n/a			n/a			n/a
Total Return *		0.66	%***		2.35	%***		-0.92	%***		n/a			n/a			n/a			n/a			n/a			n/a			n/a
Ratio of Expenses **		2.845	%		3.01	%		3.145	%		n/a			n/a			n/a			n/a			n/a			n/a			n/a

* Total return for period indicated, including changes in the value of the underlying fund, and reflects deductions for all items included in the expense ratio. The total return does not include any expenses assessed through the redemption of units, inclusion of these expenses in the calculation would result in a reduction in the total return presented. Total return for portfolios with no investment activity at period end is calculated based on the total return of the underlying mutual fund less expenses that are charged directly to the Separate Account.

** Annualized contract expenses of the Separate Account, consisting primarily of mortality and expense charges, for each period indicated. The ratios include only those expenses that result in a direct reduction to unit values. Charges made directly to contract owner accounts through the redemption of units and expenses of the underlying funds are excluded.

*** Total return is calculated from the effective date through the end of the reporting period. The effective date is the date when the optional benefit in the variable account was elected by a contract owner.

(a) Commencement of operations January 16, 2007.

(b) Commencement of operations April 6, 2009.

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Jackson National Separate Account I

Notes to Financial Statements

Note 7 - Financial Highlights (continued)

	JNL Disciplined Growth Portfolio(a)		JNL Disciplined Moderate Portfolio(a)		JNL Disciplined Moderate Growth Portfolio(a)		JNL Institutional Alt 20 Portfolio(b)		JNL Institutional Alt 35 Portfolio(b)		JNL Institutional Alt 50 Portfolio(b)		JNL Institutional Alt 65 Portfolio(b)		JNL/American Funds Blue Chip Income and Growth Portfolio(c)		JNL/American Funds Global Bond Portfolio(c)		JNL/American Funds Global Small Capitalization Portfolio(c)

Lowest expense ratio
Period ended December 31, 2011

Unit Value	$	8.647683	$	10.174362	$	9.362785	$	13.644637	$	14.171169	$	14.469467	$	14.851990	$	10.090978	$	10.721765	$	8.835361
Total Return *		-3.62%		0.22%		-1.36%		-4.59%***		-8.52%***		-9.64%***		-6.46%		-6.39%***		3.28%		-22.38%***
Ratio of Expenses **		0.50%		0.50%		0.50%		1.00%		1.00%		1.00%		1.10%		1.00%		1.00%		1.00%

Period ended December 31, 2010

Unit Value	$	8.972673	$	10.152509	$	9.491603	$	14.119848	$	14.854626	$	15.297268	$	15.878350	$	10.314502	$	10.380934	$	11.068974
Total Return *		12.17%		10.55%		12.72%		11.82%		13.11%		13.65%		14.59%		10.72%***		0.95%***		20.23%***
Ratio of Expenses **		0.50%		0.50%		0.50%		1.10%		1.10%		1.10%		1.10%		1.10%		1.00%		1.10%

Period ended December 31, 2009

Unit Value	$	7.998913	$	9.183868	$	8.420262	$	12.627216	$	13.133099	$	13.460423	$	13.857205		n/a		n/a		n/a
Total Return *		34.29%***		22.52%***		29.75%***		1.87%***		32.53%***		18.12%***		22.71%***		n/a		n/a		n/a
Ratio of Expenses **		0.50%		0.50%		0.50%		1.10%		1.10%		1.10%		1.10%		n/a		n/a		n/a

Period ended December 31, 2008

Unit Value	$	6.336449	$	7.679321	$	6.805842		n/a		n/a		n/a		n/a		n/a		n/a		n/a
Total Return *		-34.40%***		-27.44%		-35.51%		n/a		n/a		n/a		n/a		n/a		n/a		n/a
Ratio of Expenses **		1.10%		1.15%		1.15%		n/a		n/a		n/a		n/a		n/a		n/a		n/a

Period ended December 31, 2007

Unit Value	$	10.534013	$	10.582996	$	10.553448		n/a		n/a		n/a		n/a		n/a		n/a		n/a
Total Return *		-0.78%***		3.79%***		4.34%***		n/a		n/a		n/a		n/a		n/a		n/a		n/a
Ratio of Expenses **		1.15%		1.15%		1.15%		n/a		n/a		n/a		n/a		n/a		n/a		n/a

(a) Commencement of operations January 16, 2007.

(b) Commencement of operations April 6, 2009.

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Notes to Financial Statements

Note 7 - Financial Highlights (continued)

	JNL Disciplined Growth Portfolio(a)			JNL Disciplined Moderate Portfolio(a)			JNL Disciplined Moderate Growth Portfolio(a)			JNL Institutional Alt 20 Portfolio(b)			JNL Institutional Alt 35 Portfolio(b)			JNL Institutional Alt 50 Portfolio(b)			JNL Institutional Alt 65 Portfolio(b)			JNL/American Funds Blue Chip Income and Growth Portfolio(c)			JNL/American Funds Global Bond Portfolio(c)			JNL/American Funds Global Small Capitalization Portfolio(c)

Portfolio data
Period ended December 31, 2011

Net Assets (in thousands)	$	168,700		$	427,042		$	473,993		$	871,892		$	1,349,313		$	1,759,138		$	942,913		$	379,981		$	322,987		$	121,399
Units Outstanding (in thousands)		20,490			44,150			53,139			64,683			96,468			123,288			64,231			37,953			30,387			13,853
Investment Income Ratio *		1.09	%		1.34	%		1.12	%		1.00	%		0.88	%		0.86	%		0.73	%		0.67	%		1.01	%		0.37	%

Period ended December 31, 2010

Net Assets (in thousands)	$	128,516		$	322,588		$	350,989		$	591,940		$	866,696		$	1,045,302		$	686,359		$	139,612		$	99,514		$	74,487
Units Outstanding (in thousands)		14,919			33,094			38,463			42,185			58,741			68,822			43,558			13,568			9,619			6,748
Investment Income Ratio *		1.41	%		1.11	%		1.20	%		0.70	%		0.76	%		0.77	%		0.67	%		0.00	%		0.00	%		0.00	%

Period ended December 31, 2009

Net Assets (in thousands)	$	74,918		$	158,926		$	194,086		$	194,779		$	303,777		$	351,060		$	225,707			n/a			n/a			n/a
Units Outstanding (in thousands)		9,671			17,855			23,763			15,469			23,203			26,163			16,344			n/a			n/a			n/a
Investment Income Ratio *		3.46	%		2.80	%		3.23	%		0.00	%		0.00	%		0.00	%		0.00	%		n/a			n/a			n/a

Period ended December 31, 2008

Net Assets (in thousands)	$	25,007		$	55,788		$	71,319			n/a			n/a			n/a			n/a			n/a			n/a			n/a
Units Outstanding (in thousands)		3,996			7,341			10,574			n/a			n/a			n/a			n/a			n/a			n/a			n/a
Investment Income Ratio *		1.75	%		1.30	%		1.40	%		n/a			n/a			n/a			n/a			n/a			n/a			n/a

Period ended December 31, 2007

Net Assets (in thousands)	$	15,683		$	33,591		$	38,400			n/a			n/a			n/a			n/a			n/a			n/a			n/a
Units Outstanding (in thousands)		1,496			3,190			3,658			n/a			n/a			n/a			n/a			n/a			n/a			n/a
Investment Income Ratio *		0.00	%		0.00	%		0.00	%		n/a			n/a			n/a			n/a			n/a			n/a			n/a

* These amounts represent the dividends, excluding distributions of capital gains, received by the portfolio from the underlying mutual fund divided by the average net assets. In some instances, the investment income ratio may be rounded to 0.00% even though the portfolio received dividend income from the underlying mutual fund.

(a) Commencement of operations January 16, 2007.

(b) Commencement of operations April 6, 2009.

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Notes to Financial Statements

Note 7 - Financial Highlights (continued)

	JNL/American Funds Growth-Income Portfolio(b)			JNL/American Funds International Portfolio(b)			JNL/American Funds New World Portfolio(b)			JNL/BlackRock Commodity Securities Portfolio(a)			JNL/BlackRock Global Allocation Portfolio(c)			JNL/Brookfield Global Infrastructure Portfolio(d)			JNL/Capital Guardian Global Balanced Portfolio			JNL/Capital Guardian Global Diversified Research Portfolio			JNL/Capital Guardian U.S. Growth Equity Portfolio			JNL/Eagle Core Equity Portfolio

Highest expense ratio
Period ended December 31, 2011

Unit Value	$	9.687223		$	8.785597		$	9.237794		$	9.209368		$	9.525680		$	10.347709		$	8.329723		$	16.523644		$	17.818001		$	12.133220
Total Return *		-5.34	%		-17.20	%		-16.96	%		-10.72	%		-7.22	%		3.30	%***		-8.35	%		-8.11	%		-2.81	%		-4.15	%
Ratio of Expenses **		3.16	%		3.36	%		3.16	%		3.695	%		3.61	%		2.395	%		3.86	%		3.86	%		3.61	%		3.40	%

Period ended December 31, 2010

Unit Value	$	10.233282		$	10.610960		$	11.124419		$	10.315078		$	10.267439			n/a		$	9.088924		$	17.982846		$	18.334060		$	12.658211
Total Return *		7.04	%***		7.01	%***		2.97	%***		13.18	%		2.04	%***		n/a			4.89	%		7.54	%		4.02	%***		8.12	%
Ratio of Expenses **		3.16	%		3.36	%		3.16	%		3.695	%		3.61	%		n/a			3.86	%		3.86	%		3.61	%		3.40	%

Period ended December 31, 2009

Unit Value		n/a			n/a			n/a		$	9.113705			n/a			n/a		$	8.665546		$	16.721749		$	17.374529		$	11.707821
Total Return *		n/a			n/a			n/a			44.49	%		n/a			n/a			17.84	%		33.00	%		30.30	%		29.36	%
Ratio of Expenses **		n/a			n/a			n/a			3.695	%		n/a			n/a			3.86	%		3.86	%		3.41	%		3.40	%

Period ended December 31, 2008

Unit Value		n/a			n/a			n/a		$	6.307417			n/a			n/a		$	7.353527		$	12.573178		$	13.334545		$	9.050892
Total Return *		n/a			n/a			n/a			-52.24	%***		n/a			n/a			-31.00	%		-44.66	%		-42.86	%		-41.07	%
Ratio of Expenses **		n/a			n/a			n/a			3.695	%		n/a			n/a			3.86	%		3.86	%		3.41	%		3.40	%

Period ended December 31, 2007

Unit Value		n/a			n/a			n/a		$	13.428198			n/a			n/a		$	10.657491		$	22.719950		$	23.335999		$	15.359991
Total Return *		n/a			n/a			n/a			-3.84	%***		n/a			n/a			3.85	%		16.05	%		6.03	%		-2.79	%
Ratio of Expenses **		n/a			n/a			n/a			3.61	%		n/a			n/a			3.86	%		3.86	%		3.41	%		3.40	%

(a) Commencement of operations January 16, 2007.

(b) Commencement of operations May 3, 2010.

(d) Commencement of operations December 12, 2011.

Page 54

Jackson National Separate Account I

Notes to Financial Statements

Note 7 - Financial Highlights (continued)

	JNL/American Funds Growth-Income Portfolio(b)			JNL/American Funds International Portfolio(b)			JNL/American Funds New World Portfolio(b)			JNL/BlackRock Commodity Securities Portfolio(a)			JNL/BlackRock Global Allocation Portfolio(c)			JNL/Brookfield Global Infrastructure Portfolio(d)			JNL/Capital Guardian Global Balanced Portfolio			JNL/Capital Guardian Global Diversified Research Portfolio			JNL/Capital Guardian U.S. Growth Equity Portfolio			JNL/Eagle Core Equity Portfolio

Lowest expense ratio
Period ended December 31, 2011

Unit Value	$	10.041099		$	9.136696		$	9.575052		$	10.524754		$	9.833592		$	9.044877		$	11.629393		$	26.589486		$	27.509862		$	17.513600
Total Return *		-3.27	%		-19.39	%***		-17.68	%***		-8.29	%		-4.85	%***		-9.72	%***		-5.70	%		4.60	%***		-0.25	%		-1.83	%
Ratio of Expenses **		1.00	%		1.00	%		1.00	%		1.00	%		1.00	%		1.15	%		1.00	%		1.00	%		1.00	%		1.00	%

Period ended December 31, 2010

Unit Value	$	10.380945		$	10.771157		$	11.277446		$	11.475773		$	10.324763			n/a		$	12.332504		$	27.688199		$	27.579329		$	17.839236
Total Return *		5.26	%***		16.37	%***		25.58	%***		16.27	%		2.89	%***		n/a			7.93	%		10.55	%		11.55	%		10.74	%
Ratio of Expenses **		1.00	%		1.10	%		1.10	%		1.00	%		1.10	%		n/a			1.00	%		1.10	%		1.00	%		1.00	%

Period ended December 31, 2009

Unit Value		n/a			n/a			n/a		$	9.869603			n/a			n/a		$	11.426506		$	25.045545		$	24.723078		$	16.108550
Total Return *		n/a			n/a			n/a			48.44	%		n/a			n/a			21.26	%		36.72	%		33.47	%		32.50	%
Ratio of Expenses **		n/a			n/a			n/a			1.00	%		n/a			n/a			1.00	%		1.10	%		1.00	%		1.00	%

Period ended December 31, 2008

Unit Value		n/a			n/a			n/a		$	6.648895			n/a			n/a		$	9.423048		$	18.319213		$	18.523053		$	12.157618
Total Return *		n/a			n/a			n/a			-51.71	%		n/a			n/a			-29.00	%		-43.11	%		-41.46	%		-39.64	%
Ratio of Expenses **		n/a			n/a			n/a			1.00	%		n/a			n/a			1.00	%		1.10	%		1.00	%		1.00	%

Period ended December 31, 2007

Unit Value		n/a			n/a			n/a		$	13.767720			n/a			n/a		$	13.271782		$	32.201914		$	31.644131		$	20.143014
Total Return *		n/a			n/a			n/a			14.25	%***		n/a			n/a			6.88	%		19.32	%***		8.63	%		-0.42	%
Ratio of Expenses **		n/a			n/a			n/a			1.00	%		n/a			n/a			1.00	%		1.10	%		1.00	%		1.00	%

(a) Commencement of operations January 16, 2007.

(b) Commencement of operations May 3, 2010.

(d) Commencement of operations December 12, 2011.

Page 55

Jackson National Separate Account I

Notes to Financial Statements

Note 7 - Financial Highlights (continued)

	JNL/American Funds Growth-Income Portfolio(b)			JNL/American Funds International Portfolio(b)			JNL/American Funds New World Portfolio(b)			JNL/BlackRock Commodity Securities Portfolio(a)			JNL/BlackRock Global Allocation Portfolio(c)			JNL/Brookfield Global Infrastructure Portfolio(d)			JNL/Capital Guardian Global Balanced Portfolio			JNL/Capital Guardian Global Diversified Research Portfolio			JNL/Capital Guardian U.S. Growth Equity Portfolio			JNL/Eagle Core Equity Portfolio

Portfolio data
Period ended December 31, 2011

Net Assets (in thousands)	$	430,286		$	200,814		$	261,975		$	797,267		$	494,125		$	981		$	351,568		$	286,172		$	424,724		$	136,793
Units Outstanding (in thousands)		43,195			22,150			27,587			77,839			50,563			95			32,124			12,111			17,111			8,442
Investment Income Ratio *		0.53	%		0.72	%		0.60	%		0.58	%		0.67	%		0.00	%		1.08	%		0.94	%		0.34	%		0.56	%

Period ended December 31, 2010

Net Assets (in thousands)	$	164,649		$	97,917		$	128,284		$	685,623		$	172,036			n/a		$	339,313		$	289,989		$	395,677		$	109,852
Units Outstanding (in thousands)		15,914			9,113			11,407			61,152			16,678			n/a			29,149			11,595			15,939			6,677
Investment Income Ratio *		0.00	%		0.00	%		0.00	%		0.36	%		0.00	%		n/a			1.11	%		0.73	%		0.27	%		0.29	%

Period ended December 31, 2009

Net Assets (in thousands)		n/a			n/a			n/a		$	499,893			n/a			n/a		$	265,058		$	239,991		$	284,325		$	76,609
Units Outstanding (in thousands)		n/a			n/a			n/a			51,594			n/a			n/a			24,522			10,688			12,891			5,158
Investment Income Ratio *		n/a			n/a			n/a			1.06	%		n/a			n/a			2.63	%		1.91	%		0.19	%		1.42	%

Period ended December 31, 2008

Net Assets (in thousands)		n/a			n/a			n/a		$	175,643			n/a			n/a		$	173,339		$	120,056		$	123,760		$	37,396
Units Outstanding (in thousands)		n/a			n/a			n/a			26,783			n/a			n/a			19,423			7,531			7,729			3,315
Investment Income Ratio *		n/a			n/a			n/a			0.06	%		n/a			n/a			1.15	%		0.00	%		0.00	%		2.61	%

Period ended December 31, 2007

Net Assets (in thousands)		n/a			n/a			n/a		$	294,796			n/a			n/a		$	183,983		$	155,406		$	151,626		$	70,254
Units Outstanding (in thousands)		n/a			n/a			n/a			21,577			n/a			n/a			14,528			5,770			5,756			3,735
Investment Income Ratio *		n/a			n/a			n/a			0.00	%		n/a			n/a			2.54	%		0.71	%		0.00	%		1.88	%

(a) Commencement of operations January 16, 2007.

(b) Commencement of operations May 3, 2010.

(d) Commencement of operations December 12, 2011.

Page 56

Jackson National Separate Account I

Notes to Financial Statements

Note 7 - Financial Highlights (continued)

	JNL/Eagle SmallCap Equity Portfolio			JNL/Franklin Templeton Founding Strategy Portfolio(a)			JNL/Franklin Templeton Global Growth Portfolio(a)			JNL/Franklin Templeton Global Multisector Bond Portfolio(d)			JNL/Franklin Templeton Income Portfolio			JNL/Franklin Templeton Inter-national Small Cap Growth Portfolio(b)			JNL/Franklin Templeton Mutual Shares Portfolio(a)			JNL/Franklin Templeton Small Cap Value Portfolio			JNL/ Goldman Sachs Core Plus Bond Portfolio			JNL/Goldman Sachs Emerging Markets Debt Portfolio(c)

Highest expense ratio
Period ended December 31, 2011

Unit Value	$	18.484335		$	7.635375		$	6.573777		$	10.047064		$	9.850961		$	6.185254		$	7.471934		$	10.351574		$	15.830973		$	11.716134
Total Return *		-6.05	%		-4.85	%		-9.40	%		-0.11	%***		-1.04	%		-17.41	%		-3.73	%		-6.45	%		2.19	%		-8.04	%
Ratio of Expenses **		3.91	%		3.61	%		3.61	%		2.60	%		3.56	%		3.61	%		3.145	%		3.91	%		3.91	%		3.61	%

Period ended December 31, 2010

Unit Value	$	19.673973		$	8.024647		$	7.256056			n/a		$	9.954979		$	7.488896		$	7.761267		$	11.065011		$	15.491362		$	12.740806
Total Return *		30.45	%		6.47	%		3.27	%		n/a			8.63	%		16.27	%		8.00	%		21.97	%		3.50	%		11.95	%
Ratio of Expenses **		3.91	%		3.61	%		3.61	%		n/a			3.56	%		3.61	%		3.145	%		3.91	%		3.91	%		3.61	%

Period ended December 31, 2009

Unit Value	$	15.081920		$	7.536660		$	7.026219			n/a		$	9.164130		$	6.440753		$	7.186112		$	9.071610		$	14.967299		$	11.380544
Total Return *		30.29	%		25.52	%		26.20	%		n/a			28.27	%		47.18	%		22.82	%		28.47	%		9.78	%		-2.17	%***
Ratio of Expenses **		3.91	%		3.61	%		3.61	%		n/a			3.56	%		3.61	%		3.145	%		3.91	%		3.91	%		3.61	%

Period ended December 31, 2008

Unit Value	$	11.575782		$	6.004356		$	5.567683			n/a		$	7.144350		$	4.376090		$	5.851107		$	7.061138		$	13.633944		$	9.615461
Total Return *		-40.65	%		-34.77	%***		-42.73	%		n/a			-32.19	%		-49.35	%***		-39.82	%		-35.69	%		-8.81	%		5.28	%***
Ratio of Expenses **		3.91	%		3.61	%		3.61	%		n/a			3.56	%		3.61	%		3.145	%		3.91	%		3.91	%		2.845	%

Period ended December 31, 2007

Unit Value	$	19.503996		$	9.775729		$	9.721359			n/a		$	10.536430		$	9.848527		$	9.723155		$	10.980404		$	14.950410			n/a
Total Return *		7.77	%		-6.46	%***		-5.91	%***		n/a			-1.73	%		-1.51	%***		-8.10	%***		-9.76	%		2.88	%		n/a
Ratio of Expenses **		3.91	%		3.31	%		3.61	%		n/a			3.56	%		2.845	%		3.145	%		3.91	%		3.91	%		n/a

(a) Commencement of operations January 16, 2007.

(b) Commencement of operations December 3, 2007.

(d) Commencement of operations December 12, 2011.

Page 57

Jackson National Separate Account I

Notes to Financial Statements

Note 7 - Financial Highlights (continued)

	JNL/Eagle SmallCap Equity Portfolio			JNL/Franklin Templeton Founding Strategy Portfolio(a)			JNL/Franklin Templeton Global Growth Portfolio(a)			JNL/Franklin Templeton Global Multisector Bond Portfolio(d)			JNL/Franklin Templeton Income Portfolio			JNL/Franklin Templeton International Small Cap Growth Portfolio(b)			JNL/Franklin Templeton Mutual Shares Portfolio(a)			JNL/Franklin Templeton Small Cap Value Portfolio			JNL/ Goldman Sachs Core Plus Bond Portfolio			JNL/Goldman Sachs Emerging Markets Debt Portfolio(c)

Lowest expense ratio
Period ended December 31, 2011

Unit Value	$	28.847748		$	8.689677		$	7.444175		$	10.054309		$	11.388721		$	6.851335		$	8.309360		$	12.566719		$	25.690746		$	12.747546
Total Return *		-3.28	%		-2.34	%		-7.11	%		0.75	%***		1.51	%		-15.31	%		-1.65	%***		-3.69	%		5.20	%		-5.62	%
Ratio of Expenses **		1.00	%		1.00	%		1.10	%		1.15	%		1.00	%		1.10	%		1.00	%		1.00	%		1.00	%		1.00	%

Period ended December 31, 2010

Unit Value	$	29.826055		$	8.897977		$	8.013670			n/a		$	11.218832		$	8.090292		$	8.415078		$	13.048587		$	24.420522		$	13.506371
Total Return *		34.30	%		9.29	%		5.90	%		n/a			11.45	%		19.23	%		10.24	%		25.58	%		6.56	%		14.91	%
Ratio of Expenses **		1.00	%		1.00	%		1.10	%		n/a			1.00	%		1.10	%		1.10	%		1.00	%		1.00	%		1.00	%

Period ended December 31, 2009

Unit Value	$	22.208611		$	8.141578		$	7.567485			n/a		$	10.066533		$	6.785510		$	7.633746		$	10.390995		$	22.917617		$	11.753563
Total Return *		34.14	%		28.84	%		29.40	%		n/a			31.60	%		50.92	%		25.35	%		32.27	%		13.02	%		6.16	%***
Ratio of Expenses **		1.00	%		1.00	%		1.10	%		n/a			1.00	%		1.10	%		1.10	%		1.00	%		1.00	%		1.00	%

Period ended December 31, 2008

Unit Value	$	16.556491		$	6.319163		$	5.847939			n/a		$	7.649488		$	4.496055		$	6.089773		$	7.855974		$	20.277549		$	9.655005
Total Return *		-38.90	%		-36.77	%		-41.27	%		n/a			-30.44	%		-25.74	%***		-5.75	%***		-33.79	%		-6.12	%		-3.14	%***
Ratio of Expenses **		1.00	%		1.00	%		1.10	%		n/a			1.00	%		1.10	%		1.10	%		1.00	%		1.00	%		1.10	%

Period ended December 31, 2007

Unit Value	$	27.096246		$	9.993973		$	9.957514			n/a		$	10.996249		$	9.860527		$	9.910412		$	11.866094		$	21.598776			n/a
Total Return *		10.97	%		-1.17	%***		2.11	%***		n/a			0.83	%		-1.39	%***		-0.79	%***		-7.07	%		5.94	%		n/a
Ratio of Expenses **		1.00	%		1.00	%		1.10	%		n/a			1.00	%		1.25	%		1.15	%		1.00	%		1.00	%		n/a

(a) Commencement of operations January 16, 2007.

(b) Commencement of operations December 3, 2007.

(d) Commencement of operations December 12, 2011.

Page 58

Jackson National Separate Account I

Notes to Financial Statements

Note 7 - Financial Highlights (continued)

	JNL/Eagle SmallCap Equity Portfolio			JNL/Franklin Templeton Founding Strategy Portfolio(a)			JNL/Franklin Templeton Global Growth Portfolio(a)			JNL/Franklin Templeton Global Multisector Bond Portfolio(d)			JNL/Franklin Templeton Income Portfolio			JNL/Franklin Templeton International Small Cap Growth Portfolio(b)			JNL/Franklin Templeton Mutual Shares Portfolio(a)			JNL/Franklin Templeton Small Cap Value Portfolio			JNL/ Goldman Sachs Core Plus Bond Portfolio			JNL/Goldman Sachs Emerging Markets Debt Portfolio(c)

Portfolio data
Period ended December 31, 2011

Net Assets (in thousands)	$	624,638		$	1,002,736		$	150,197		$	3,209		$	830,111		$	159,531		$	310,557		$	261,576		$	576,804		$	325,784
Units Outstanding (in thousands)		23,617			118,697			20,586			319			75,202			23,703			38,323			21,600			24,660			26,008
Investment Income Ratio *		0.00	%		1.46	%		0.95	%		0.00	%		4.30	%		1.52	%		2.60	%		0.28	%		2.12	%		4.64	%

Period ended December 31, 2010

Net Assets (in thousands)	$	414,824		$	980,170		$	120,991			n/a		$	647,703		$	147,477		$	242,092		$	235,996		$	471,544		$	363,805
Units Outstanding (in thousands)		15,142			112,773			15,358			n/a			59,311			18,484			29,259			18,698			21,206			27,289
Investment Income Ratio *		0.20	%		2.99	%		1.46	%		n/a			4.19	%		1.30	%		0.02	%		0.48	%		2.52	%		1.30	%

Period ended December 31, 2009

Net Assets (in thousands)	$	179,792		$	795,638		$	82,733			n/a		$	406,535		$	92,048		$	146,000		$	126,299		$	365,183		$	126,741
Units Outstanding (in thousands)		8,801			99,557			11,092			n/a			41,299			13,701			19,405			12,508			17,500			10,866
Investment Income Ratio *		0.00	%		0.07	%		2.38	%		n/a			7.51	%		2.32	%		4.87	%		0.95	%		4.93	%		0.19	%

Period ended December 31, 2008

Net Assets (in thousands)	$	107,791		$	552,970		$	34,780			n/a		$	214,040		$	15,040		$	60,998		$	57,615		$	276,385		$	8,743
Units Outstanding (in thousands)		7,090			88,674			6,013			n/a			28,474			3,365			10,133			7,519			14,923			906
Investment Income Ratio *		0.00	%		1.40	%		0.02	%		n/a			0.09	%		0.25	%		0.00	%		1.19	%		3.40	%		0.00	%

Period ended December 31, 2007

Net Assets (in thousands)	$	159,201		$	762,485		$	47,195			n/a		$	252,304		$	1,986		$	71,047		$	57,150		$	329,798			n/a
Units Outstanding (in thousands)		6,378			76,812			4,766			n/a			23,215			202			7,206			4,912			16,644			n/a
Investment Income Ratio *		2.39	%		0.00	%		1.28	%		n/a			4.81	%		0.00	%		0.00	%		2.81	%		3.54	%		n/a

(a) Commencement of operations January 16, 2007.

(b) Commencement of operations December 3, 2007.

(d) Commencement of operations December 12, 2011.

Page 59

Jackson National Separate Account I

Notes to Financial Statements

Note 7 - Financial Highlights (continued)

	JNL/ Goldman Sachs Mid Cap Value Portfolio			JNL/Goldman Sachs U.S. Equity Flex Portfolio(a)			JNL/Invesco Global Real Estate Portfolio			JNL/Invesco International Growth Portfolio			JNL/Invesco Large Cap Growth Portfolio			JNL/Invesco Small Cap Growth Portfolio			JNL/Ivy Asset Strategy Portfolio(b)			JNL/JPMorgan International Value Portfolio			JNL/JPMorgan MidCap Growth Portfolio			JNL/JPMorgan U.S. Government & Quality Bond Portfolio

Highest expense ratio
Period ended December 31, 2011

Unit Value	$	10.291465		$	7.047439		$	9.910099		$	10.145789		$	9.074299		$	12.202050		$	9.747802		$	7.956627		$	15.899613		$	13.994311
Total Return *		-10.11	%		-13.32	%		-9.67	%		-10.45	%		-10.11	%		-4.75	%		-10.77	%		-16.20	%		-9.22	%		5.80	%
Ratio of Expenses **		3.91	%		3.06	%		3.71	%		3.91	%		3.75	%		3.51	%		3.61	%		3.91	%		3.61	%		3.75	%

Period ended December 31, 2010

Unit Value	$	11.449489		$	8.130127		$	10.970794		$	11.329284		$	10.094858		$	12.811152		$	10.923852		$	9.494509		$	17.514872		$	13.226942
Total Return *		19.63	%		5.42	%		12.88	%		8.00	%		13.09	%		21.86	%		1.72	%***		3.46	%		21.14	%		3.39	%
Ratio of Expenses **		3.91	%		3.06	%		3.71	%		3.91	%		3.75	%		3.51	%		3.61	%		3.91	%		3.61	%		3.75	%

Period ended December 31, 2009

Unit Value	$	9.571077		$	7.712029		$	9.719054		$	10.490005		$	8.926762		$	10.513159		$	10.330943		$	9.177295		$	14.458073		$	12.792920
Total Return *		27.56	%		21.10	%		27.71	%		31.73	%		19.72	%		30.15	%		0.07	%***		25.18	%		37.89	%		-0.12	%
Ratio of Expenses **		3.91	%		3.06	%		3.71	%		3.91	%		3.75	%		3.51	%		2.96	%		3.91	%		3.61	%		3.75	%

Period ended December 31, 2008

Unit Value	$	7.502931		$	6.368322		$	7.610482		$	7.963090		$	7.456591		$	8.077700			n/a		$	7.331489		$	10.484843		$	12.808585
Total Return *		-38.54	%		-34.86	%***		-38.05	%		-43.20	%		-39.96	%		-41.81	%		n/a			-46.62	%		-46.41	%		2.61	%
Ratio of Expenses **		3.91	%		3.06	%		3.71	%		3.91	%		3.75	%		3.51	%		n/a			3.91	%		3.61	%		3.75	%

Period ended December 31, 2007

Unit Value	$	12.208730		$	10.538002		$	12.284252		$	14.019714		$	12.418859		$	13.881145			n/a		$	13.734935		$	19.566550		$	12.482587
Total Return *		-1.17	%		3.69	%***		-18.12	%		5.54	%		11.47	%		-2.85	%***		n/a			7.66	%		4.11	%		2.45	%
Ratio of Expenses **		3.91	%		3.05	%		3.71	%		3.91	%		3.75	%		3.51	%		n/a			3.91	%		3.61	%		3.75	%

(a) Commencement of operations January 16, 2007.

(b) Commencement of operations September 28, 2009.

Page 60

Jackson National Separate Account I

Notes to Financial Statements (continued)

Note 7 - Financial Highlights (continued)

	JNL/ Goldman Sachs Mid Cap Value Portfolio			JNL/Goldman Sachs U.S. Equity Flex Portfolio(a)			JNL/Invesco Global RealEstate Portfolio			JNL/Invesco International Growth Portfolio			JNL/Invesco Large Cap Growth Portfolio			JNL/Invesco Small Cap Growth Portfolio			JNL/Ivy Asset Strategy Portfolio(b)			JNL/JPMorgan International Value Portfolio			JNL/JPMorgan MidCap Growth Portfolio			JNL/JPMorgan U.S. Government & Quality Bond Portfolio

Lowest expense ratio
Period ended December 31, 2011

Unit Value	$	12.493934		$	7.804539		$	11.871410		$	16.465808		$	12.003511		$	15.751828		$	10.338760		$	11.901546		$	24.544669		$	22.112284
Total Return *		-7.47	%		-11.52	%		-7.19	%		-7.81	%		-7.61	%		-2.34	%		-8.41	%		-13.73	%		-6.83	%		8.74	%
Ratio of Expenses **		1.00	%		1.00	%		1.00	%		1.00	%		1.00	%		1.00	%		1.00	%		1.00	%		1.00	%		1.00	%

Period ended December 31, 2010

Unit Value	$	13.502182		$	8.820425		$	12.791583		$	17.860560		$	12.992248		$	16.129274		$	11.288377		$	13.795686		$	26.343380		$	20.334353
Total Return *		23.16	%		7.62	%		15.98	%		11.19	%		16.24	%		24.96	%		8.72	%		6.51	%		24.35	%		6.28	%
Ratio of Expenses **		1.00	%		1.00	%		1.00	%		1.00	%		1.00	%		1.00	%		1.00	%		1.00	%		1.00	%		1.00	%

Period ended December 31, 2009

Unit Value	$	10.963264		$	8.196234		$	11.029111		$	16.063122		$	11.177218		$	12.907977		$	10.383224		$	12.952293		$	21.185481		$	19.133594
Total Return *		31.33	%		23.62	%		31.21	%		35.63	%		23.05	%		33.46	%		-0.96	%***		28.87	%		41.54	%		2.66	%
Ratio of Expenses **		1.00	%		1.00	%		1.00	%		1.00	%		1.00	%		1.00	%		1.00	%		1.00	%		1.00	%		1.00	%

Period ended December 31, 2008

Unit Value	$	8.347706		$	6.630091		$	8.405404		$	11.843487		$	9.083134		$	9.671897			n/a		$	10.050436		$	14.968151		$	18.637360
Total Return *		-36.73	%		-2.64	%***		-36.34	%		-41.52	%		-38.28	%		-40.33	%		n/a			-45.05	%		-45.00	%		5.47	%
Ratio of Expenses **		1.00	%		1.00	%		1.00	%		1.00	%		1.00	%		1.00	%		n/a			1.00	%		1.00	%		1.00	%

Period ended December 31, 2007

Unit Value	$	13.193511		$	10.731355		$	13.204592		$	20.253728		$	14.717475		$	16.208684			n/a		$	18.288854		$	27.213447		$	17.670275
Total Return *		1.94	%***		6.45	%***		-15.86	%		8.68	%		14.59	%		10.26	%		n/a			10.85	%		6.88	%		5.32	%
Ratio of Expenses **		1.00	%		1.15	%		1.00	%		1.00	%		1.00	%		1.00	%		n/a			1.00	%		1.00	%		1.00	%

(a) Commencement of operations January 16, 2007.

(b) Commencement of operations September 28, 2009.

Page 61

Jackson National Separate Account I

Notes to Financial Statements (continued)

Note 7 - Financial Highlights (continued)

	JNL/ Goldman Sachs Mid Cap Value Portfolio			JNL/Goldman Sachs U.S. Equity Flex Portfolio(a)			JNL/Invesco Global Real Estate Portfolio			JNL/Invesco International Growth Portfolio			JNL/Invesco Large Cap Growth Portfolio			JNL/Invesco Small Cap Growth Portfolio			JNL/Ivy Asset Strategy Portfolio(b)			JNL/JPMorgan International Value Portfolio			JNL/JPMorgan MidCap Growth Portfolio			JNL/JPMorgan U.S. Government & Quality Bond Portfolio

Portfolio data
Period ended December 31, 2011

Net Assets (in thousands)	$	282,268		$	92,895		$	408,952		$	283,951		$	301,831		$	167,008		$	1,322,819		$	263,258		$	199,952		$	715,934
Units Outstanding (in thousands)		23,437			12,224			35,711			18,827			26,626			11,220			129,612			23,696			9,357			35,866
Investment Income Ratio *		0.63	%		0.12	%		2.76	%		0.70	%		0.16	%		0.00	%		0.15	%		2.74	%		0.00	%		2.84	%

Period ended December 31, 2010

Net Assets (in thousands)	$	235,722		$	109,598		$	355,581		$	273,458		$	266,462		$	139,754		$	843,628		$	302,225		$	171,540		$	491,104
Units Outstanding (in thousands)		18,038			12,702			28,708			16,716			21,671			9,144			75,384			23,388			7,588			26,522
Investment Income Ratio *		0.60	%		0.66	%		4.61	%		0.82	%		0.28	%		0.00	%		0.01	%		2.81	%		0.00	%		2.71	%

Period ended December 31, 2009

Net Assets (in thousands)	$	130,124		$	86,765		$	214,583		$	186,951		$	218,614		$	86,035		$	157,832		$	270,170		$	115,417		$	389,728
Units Outstanding (in thousands)		12,215			10,774			20,033			12,731			20,598			7,002			15,362			22,142			6,505			22,457
Investment Income Ratio *		1.26	%		0.93	%		2.64	%		2.29	%		0.31	%		0.00	%		0.00	%		4.71	%		0.00	%		2.38	%

Period ended December 31, 2008

Net Assets (in thousands)	$	64,799		$	40,233		$	112,539		$	108,750		$	127,035		$	37,620			n/a		$	187,536		$	64,780		$	448,360
Units Outstanding (in thousands)		7,952			6,154			13,737			10,061			14,671			4,076			n/a			19,656			5,353			26,520
Investment Income Ratio *		1.02	%		0.00	%		2.18	%		0.42	%		0.14	%		0.00	%		n/a			1.94	%		0.00	%		2.87	%

Period ended December 31, 2007

Net Assets (in thousands)	$	89,409		$	19,247		$	134,186		$	203,285		$	193,899		$	69,218			n/a		$	396,407		$	133,042		$	190,859
Units Outstanding (in thousands)		6,902			1,804			10,355			10,936			13,729			4,448			n/a			22,558			6,122			11,779
Investment Income Ratio *		2.42	%		0.00	%		2.77	%		1.65	%		0.57	%		0.34	%		n/a			5.66	%		0.00	%		3.79	%

(a) Commencement of operations January 16, 2007.

(b) Commencement of operations September 28, 2009.

Page 62

Jackson National Separate Account I

Notes to Financial Statements (continued)

Note 7 - Financial Highlights (continued)

	JNL/Lazard Emerging Markets Portfolio			JNL/Lazard Mid Cap Equity Portfolio			JNL/M&G Global Basics Portfolio(b)			JNL/M&G Global Leaders Portfolio(b)			JNL/MCM 10 x 10 Portfolio(a)			JNL/MCM 25 Portfolio			JNL/MCM Bond Index Portfolio			JNL/MCM Communications Sector Portfolio			JNL/MCM Consumer Brands Sector Portfolio			JNL/MCM Dow 10 Portfolio

Highest expense ratio
Period ended December 31, 2011

Unit Value	$	10.156056		$	13.672144		$	11.969358		$	10.403556		$	7.755443		$	11.039085		$	10.966479		$	3.996745		$	9.160024		$	7.166008
Total Return *		-20.66	%		-9.08	%		-14.95	%		-14.33	%		-5.11	%		4.62	%		3.05	%		-6.70	%		2.77	%		13.37	%
Ratio of Expenses **		3.61	%		3.695	%		3.545	%		3.06	%		3.145	%		4.00	%		3.91	%		3.71	%		3.61	%		4.00	%

Period ended December 31, 2010

Unit Value	$	12.800285		$	15.037352		$	14.073788		$	12.143560		$	8.173251		$	10.552032		$	10.641541		$	4.283972		$	8.913488		$	6.321014
Total Return *		17.59	%		18.61	%		18.80	%		9.96	%***		12.83	%		18.03	%		1.81	%		18.07	%		23.58	%***		19.77	%
Ratio of Expenses **		3.61	%		3.695	%		3.545	%		3.06	%		3.145	%		4.00	%		3.91	%		3.71	%		3.61	%		4.00	%

Period ended December 31, 2009

Unit Value	$	10.885966		$	12.678476		$	11.846888		$	11.081543		$	7.244035		$	8.939833		$	10.452001		$	3.628383		$	7.568376		$	5.277655
Total Return *		65.65	%		34.59	%		0.00	%***		9.79	%***		20.73	%		46.95	%		1.69	%		21.02	%		28.48	%		11.33	%
Ratio of Expenses **		3.61	%		3.695	%		3.545	%		2.895	%		3.145	%		4.00	%		3.91	%		3.71	%		3.56	%		4.00	%

Period ended December 31, 2008

Unit Value	$	6.571545		$	9.420260		$	8.374701		$	8.306746		$	6.000234		$	6.083724		$	10.278779		$	2.998232		$	5.890476		$	4.740586
Total Return *		-51.82	%		-41.18	%		12.01	%***		6.85	%***		-38.22	%		-37.77	%		-0.28	%		-41.84	%		-33.70	%		-48.14	%
Ratio of Expenses **		3.61	%		3.695	%		2.295	%		2.56	%		3.145	%		4.00	%		3.91	%		3.71	%		3.56	%		4.00	%

Period ended December 31, 2007

Unit Value	$	13.639504		$	16.014550			n/a			n/a		$	9.712781		$	9.775965		$	10.307274		$	5.154877		$	8.884283		$	9.141905
Total Return *		-2.44	%***		-6.16	%		n/a			n/a			-2.81	%***		-6.66	%		2.31	%		0.49	%		-11.10	%		-2.96	%
Ratio of Expenses **		3.61	%		3.695	%		n/a			n/a			3.145	%		4.00	%		3.91	%		3.71	%		3.56	%		4.00	%

(a) Commencement of operations April 30, 2007.

(b) Commencement of operations October 6, 2008.

Page 63

Jackson National Separate Account I

Notes to Financial Statements (continued)

Note 7 - Financial Highlights (continued)

	JNL/Lazard Emerging Markets Portfolio			JNL/Lazard Mid Cap Equity Portfolio			JNL/M&G Global Basics Portfolio(b)			JNL/M&G Global Leaders Portfolio(b)			JNL/MCM 10 x 10 Portfolio(a)			JNL/MCM 25 Portfolio			JNL/MCM Bond Index Portfolio			JNL/MCM Communications Sector Portfolio			JNL/MCM Consumer Brands Sector Portfolio			JNL/MCM Dow 10 Portfolio

Lowest expense ratio
Period ended December 31, 2011

Unit Value	$	11.774602		$	19.851042		$	12.995956		$	11.120220		$	8.532328		$	16.057054		$	14.655253		$	5.608553		$	12.695583		$	10.423578
Total Return *		-18.57	%		-6.60	%		-12.77	%		-12.55	%		-3.16	%		7.79	%		6.09	%		-4.15	%		5.48	%		16.81	%
Ratio of Expenses **		1.00	%		1.00	%		1.00	%		1.00	%		1.10	%		1.00	%		1.00	%		1.00	%		1.00	%		1.00	%

Period ended December 31, 2010

Unit Value	$	14.458958		$	21.254205		$	14.897910		$	12.715963		$	8.810460		$	14.896187		$	13.814234		$	5.851318		$	12.036436		$	8.923432
Total Return *		20.70	%		21.85	%		21.86	%		12.09	%		15.16	%		21.63	%		4.82	%		21.31	%		21.54	%		23.42	%
Ratio of Expenses **		1.00	%		1.00	%		1.00	%		1.00	%		1.10	%		1.00	%		1.00	%		1.00	%		1.00	%		1.00	%

Period ended December 31, 2009

Unit Value	$	11.979738		$	17.443577		$	12.225430		$	11.344119		$	7.650716		$	12.247240		$	13.179022		$	4.823358		$	9.903635		$	7.230299
Total Return *		70.03	%		38.26	%		45.54	%		36.06	%		23.22	%		51.42	%		4.70	%		24.34	%		31.82	%		14.72	%
Ratio of Expenses **		1.00	%		1.00	%		1.00	%		1.00	%		1.10	%		1.00	%		1.00	%		1.00	%		1.00	%		1.00	%

Period ended December 31, 2008

Unit Value	$	7.045604		$	12.616145		$	8.400224		$	8.337377		$	6.208784		$	8.088140		$	12.587951		$	3.879092		$	7.513185		$	6.302564
Total Return *		-50.55	%		-39.57	%		-5.59	%***		-4.47	%***		-35.78	%***		-35.87	%		2.66	%		-40.24	%		-31.98	%		-46.57	%
Ratio of Expenses **		1.00	%		1.00	%		1.00	%		1.00	%		1.10	%		1.00	%		1.00	%		1.00	%		1.00	%		1.00	%

Period ended December 31, 2007

Unit Value	$	14.246633		$	20.877235			n/a			n/a		$	9.843719		$	12.612726		$	12.261238		$	6.491019		$	11.045267		$	11.794827
Total Return *		24.60	%***		-3.58	%		n/a			n/a			-4.92	%***		-3.80	%		5.36	%		3.26	%***		-8.79	%		0.01	%
Ratio of Expenses **		1.00	%		1.00	%		n/a			n/a			1.15	%		1.00	%		1.00	%		1.00	%		1.00	%		1.00	%

(a) Commencement of operations April 30, 2007.

(b) Commencement of operations October 6, 2008.

Page 64

Jackson National Separate Account I

Notes to Financial Statements (continued)

Note 7 - Financial Highlights (continued)

	JNL/Lazard Emerging Markets Portfolio			JNL/Lazard Mid Cap Equity Portfolio			JNL/M&G Global Basics Portfolio(b)			JNL/M&G Global Leaders Portfolio(b)			JNL/MCM 10 x 10 Portfolio(a)			JNL/MCM 25 Portfolio			JNL/MCM Bond Index Portfolio			JNL/MCM Communications Sector Portfolio			JNL/MCM Consumer Brands Sector Portfolio			JNL/MCM Dow 10 Portfolio

Portfolio data
Period ended December 31, 2011

Net Assets (in thousands)	$	738,739		$	206,248		$	54,019		$	28,847		$	244,930		$	501,984		$	597,160		$	53,185		$	107,189		$	491,868
Units Outstanding (in thousands)		64,678			11,308			4,233			2,639			29,259			33,587			43,197			10,225			9,082			50,814
Investment Income Ratio *		1.00	%		0.67	%		0.20	%		0.74	%		1.49	%		2.59	%		2.94	%		2.69	%		0.56	%		0.00	%

Period ended December 31, 2010

Net Assets (in thousands)	$	973,071		$	196,396		$	42,221		$	22,109		$	228,626		$	487,532		$	533,405		$	59,388		$	74,764		$	376,875
Units Outstanding (in thousands)		69,140			10,055			2,870			1,761			26,356			35,167			40,776			10,912			6,641			45,320
Investment Income Ratio *		0.59	%		0.52	%		0.79	%		0.50	%		2.09	%		2.46	%		2.62	%		2.66	%		0.53	%		0.00	%

Period ended December 31, 2009

Net Assets (in thousands)	$	531,698		$	150,303		$	23,031		$	11,179		$	172,516		$	383,253		$	466,312		$	39,177		$	33,163		$	338,274
Units Outstanding (in thousands)		45,414			9,389			1,899			993			22,814			33,485			37,262			8,725			3,576			50,000
Investment Income Ratio *		2.38	%		0.83	%		0.74	%		1.33	%		4.71	%		4.57	%		3.09	%		4.96	%		0.68	%		0.00	%

Period ended December 31, 2008

Net Assets (in thousands)	$	148,734		$	110,321		$	552		$	366		$	88,276		$	326,726		$	314,498		$	27,618		$	22,306		$	335,675
Units Outstanding (in thousands)		21,505			9,536			66			44			14,348			42,986			26,242			7,623			3,172			56,632
Investment Income Ratio *		0.66	%		1.22	%		0.00	%		0.17	%		1.18	%		3.13	%		4.39	%		4.39	%		0.34	%		0.00	%

Period ended December 31, 2007

Net Assets (in thousands)	$	243,760		$	214,652			n/a			n/a		$	50,864		$	689,744		$	303,352		$	82,006		$	17,959		$	815,547
Units Outstanding (in thousands)		17,321			11,206			n/a			n/a			5,188			57,881			25,866			13,425			1,719			73,139
Investment Income Ratio *		0.26	%		5.52	%		n/a			n/a			0.00	%		1.64	%		4.40	%		4.21	%		0.49	%		0.00	%

(a) Commencement of operations April 30, 2007.

(b) Commencement of operations October 6, 2008.

Page 65

Jackson National Separate Account I

Notes to Financial Statements (continued)

Note 7 - Financial Highlights (continued)

	JNL/MCM Dow Dividend Portfolio			JNL/MCM Emerging Markets Index Portfolio(d)			JNL/MCM European 30 Portfolio(b)			JNL/MCM Financial Sector Portfolio			JNL/MCM Global 15 Portfolio			JNL/MCM Global Alpha Portfolio(c)			JNL/MCM Healthcare Sector Portfolio			JNL/MCM Index 5 Portfolio(a)			JNL/MCM International Index Portfolio			JNL/MCM JNL 5 Portfolio

Highest expense ratio
Period ended December 31, 2011

Unit Value	$	6.280886		$	8.995976		$	10.430452		$	5.036198		$	9.429313		$	10.104784		$	9.780146		$	8.407176		$	10.446888		$	9.140074
Total Return *		2.03	%		-1.25	%***		-10.13	%		-15.97	%		-11.85	%		0.00	%		6.96	%		-5.55	%		-15.61	%		-5.61	%
Ratio of Expenses **		3.61	%		2.76	%		3.05	%		3.61	%		4.00	%		2.845	%		3.61	%		3.61	%		3.895	%		3.695	%

Period ended December 31, 2010

Unit Value	$	6.155755			n/a		$	11.605989		$	5.993357		$	10.697139		$	10.104302		$	9.143940		$	8.900767		$	12.378630		$	9.683474
Total Return *		8.07	%		n/a			-3.53	%***		9.46	%		10.19	%		2.13	%***		0.19	%***		11.68	%		2.73	%		12.86	%
Ratio of Expenses **		3.61	%		n/a			3.05	%		3.61	%		4.00	%		2.845	%		3.61	%		3.61	%		3.895	%		3.695	%

Period ended December 31, 2009

Unit Value	$	5.695866			n/a		$	11.735781		$	5.475175		$	9.707498		$	9.811293		$	9.126428		$	7.970029		$	12.049528		$	8.580057
Total Return *		15.99	%		n/a			6.88	%***		14.41	%		25.92	%		-2.51	%***		16.12	%		2.11	%***		24.34	%		19.63	%
Ratio of Expenses **		3.61	%		n/a			2.91	%		3.61	%		4.00	%		2.71	%		3.56	%		3.61	%		3.895	%		3.695	%

Period ended December 31, 2008

Unit Value	$	4.910643			n/a		$	8.579682		$	4.785452		$	7.709450			n/a		$	7.859728		$	6.641190		$	9.690621		$	7.171980
Total Return *		-42.83	%***		n/a			-9.36	%***		-52.39	%		-50.53	%		n/a			-25.89	%		-29.78	%***		-45.10	%		-44.62	%
Ratio of Expenses **		3.61	%		n/a			2.295	%		3.61	%		4.00	%		n/a			3.56	%		3.26	%		3.895	%		3.695	%

Period ended December 31, 2007

Unit Value	$	10.068067			n/a			n/a		$	10.052315		$	15.585405			n/a		$	10.605473		$	9.793444		$	17.652756		$	12.950761
Total Return *		-13.16	%		n/a			n/a			-20.31	%		6.74	%		n/a			3.78	%		-4.03	%***		6.15	%		-2.26	%
Ratio of Expenses **		3.545	%		n/a			n/a			3.61	%		4.00	%		n/a			3.56	%		3.11	%		3.895	%		3.695	%

(a) Commencement of operations April 30, 2007.

(b) Commencement of operations October 6, 2008.

(d) Commencement of operations August 29, 2011.

Page 66

Jackson National Separate Account I

Notes to Financial Statements (continued)

Note 7 - Financial Highlights (continued)

	JNL/MCM Dow Dividend Portfolio			JNL/MCM Emerging Markets Index Portfolio(d)			JNL/MCM European 30 Portfolio(b)			JNL/MCM Financial Sector Portfolio			JNL/MCM Global 15 Portfolio			JNL/MCM Global Alpha Portfolio(c)			JNL/MCM Healthcare Sector Portfolio			JNL/MCM Index 5 Portfolio(a)			JNL/MCM International Index Portfolio			JNL/MCM JNL 5 Portfolio

Lowest expense ratio
Period ended December 31, 2011

Unit Value	$	7.336783		$	10.354126		$	11.108943		$	6.979045		$	13.715652		$	10.510301		$	13.555164		$	9.453252		$	13.937538		$	11.108993
Total Return *		4.72	%		16.86	%***		-8.37	%		-13.75	%		-9.17	%		1.76	%		9.78	%		-3.15	%		-13.13	%		-3.04	%
Ratio of Expenses **		1.00	%		1.15	%		1.10	%		1.00	%		1.00	%		1.10	%		1.00	%		1.10	%		1.00	%		1.00	%

Period ended December 31, 2010

Unit Value	$	7.005860			n/a		$	12.123107		$	8.092060		$	15.101143		$	10.328476		$	12.347713		$	9.760839		$	16.044721		$	11.457330
Total Return *		10.93	%		n/a			1.02	%		12.36	%		13.55	%		4.84	%		2.84	%		14.52	%		5.75	%		15.94	%
Ratio of Expenses **		1.00	%		n/a			1.10	%		1.00	%		1.00	%		1.10	%		1.00	%		1.10	%		1.00	%		1.00	%

Period ended December 31, 2009

Unit Value	$	6.315424			n/a		$	12.001143		$	7.202118		$	13.299024		$	9.852047		$	12.006527		$	8.523506		$	15.172458		$	9.881825
Total Return *		19.06	%		n/a			7.56	%***		17.44	%		29.75	%		-2.14	%***		19.77	%		23.79	%		27.99	%		22.90	%
Ratio of Expenses **		1.00	%		n/a			1.10	%		1.00	%		1.00	%		1.10	%		1.00	%		1.10	%		1.00	%		1.00	%

Period ended December 31, 2008

Unit Value	$	5.304558			n/a		$	8.602749		$	6.132779		$	10.249580			n/a		$	10.024957		$	6.885272		$	11.853967		$	8.040449
Total Return *		-49.87	%		n/a			-7.01	%***		-51.14	%		-49.03	%		n/a			-23.97	%		-28.18	%***		-43.49	%		-43.11	%
Ratio of Expenses **		1.00	%		n/a			1.15	%		1.00	%		1.00	%		n/a			1.00	%		1.10	%		1.00	%		1.00	%

Period ended December 31, 2007

Unit Value	$	10.581265			n/a			n/a		$	12.550628		$	20.108100			n/a		$	13.185167		$	9.923123		$	20.977377		$	14.132910
Total Return *		-10.83	%***		n/a			n/a			-18.19	%***		10.01	%		n/a			6.49	%		1.36	%***		9.29	%		0.42	%
Ratio of Expenses **		1.00	%		n/a			n/a			1.00	%		1.00	%		n/a			1.00	%		1.15	%		1.00	%		1.00	%

(a) Commencement of operations April 30, 2007.

(b) Commencement of operations October 6, 2008.

(d) Commencement of operations August 29, 2011.

Page 67

Jackson National Separate Account I

Notes to Financial Statements (continued)

Note 7 - Financial Highlights (continued)

	JNL/MCM Dow Dividend Portfolio			JNL/MCM Emerging Markets Index Portfolio(d)			JNL/MCM European 30 Portfolio(b)			JNL/MCM Financial Sector Portfolio			JNL/MCM Global 15 Portfolio			JNL/MCM Global Alpha Portfolio(c)			JNL/MCM Healthcare Sector Portfolio			JNL/MCM Index 5 Portfolio(a)			JNL/MCM International Index Portfolio			JNL/MCM JNL 5 Portfolio

Portfolio data
Period ended December 31, 2011

Net Assets (in thousands)	$	296,678		$	3,375		$	19,793		$	151,291		$	400,433		$	50,622		$	252,885		$	380,323		$	407,505		$	2,666,784
Units Outstanding (in thousands)		41,857			374			1,806			23,421			31,453			4,865			20,056			40,956			30,833			250,692
Investment Income Ratio *		3.10	%		0.00	%		1.93	%		0.79	%		0.00	%		0.78	%		0.93	%		1.04	%		2.60	%		3.14	%

Period ended December 31, 2010

Net Assets (in thousands)	$	253,764			n/a		$	16,887		$	172,834		$	522,951		$	38,606		$	159,186		$	302,372		$	473,953		$	3,150,482
Units Outstanding (in thousands)		37,321			n/a			1,406			22,949			37,238			3,759			13,810			31,427			31,092			285,784
Investment Income Ratio *		2.92	%		n/a			0.07	%		1.25	%		0.00	%		0.00	%		1.06	%		1.14	%		1.94	%		2.09	%

Period ended December 31, 2009

Net Assets (in thousands)	$	231,277			n/a		$	12,296		$	139,933		$	571,293		$	6,516		$	151,086		$	181,699		$	448,711		$	3,112,603
Units Outstanding (in thousands)		37,582			n/a			1,030			20,881			45,965			662			13,468			21,566			31,012			325,622
Investment Income Ratio *		7.43	%		n/a			5.88	%		1.78	%		0.00	%		0.00	%		1.37	%		1.43	%		2.71	%		3.69	%

Period ended December 31, 2008

Net Assets (in thousands)	$	187,965			n/a		$	393		$	72,120		$	523,597			n/a		$	118,315		$	56,123		$	296,336		$	2,750,040
Units Outstanding (in thousands)		36,151			n/a			46			12,618			54,392			n/a			12,595			8,223			26,077			351,715
Investment Income Ratio *		0.45	%		n/a			0.76	%		1.76	%		0.00	%		n/a			0.82	%		1.35	%		2.07	%		2.19	%

Period ended December 31, 2007

Net Assets (in thousands)	$	381,088			n/a			n/a		$	51,640		$	1,308,355			n/a		$	106,519		$	27,920		$	554,883		$	5,208,867
Units Outstanding (in thousands)		36,492			n/a			n/a			4,371			68,945			n/a			8,577			2,824			27,401			376,758
Investment Income Ratio *		0.00	%		n/a			n/a			1.53	%		0.00	%		n/a			0.80	%		0.00	%		2.83	%		2.12	%

(a) Commencement of operations April 30, 2007.

(b) Commencement of operations October 6, 2008.

(d) Commencement of operations August 29, 2011.

Page 68

Jackson National Separate Account I

Notes to Financial Statements (continued)

Note 7 - Financial Highlights (continued)

	JNL/MCM JNL Optimized 5 Portfolio			JNL/MCM Nasdaq 25 Portfolio			JNL/MCM NYSE International 25 Portfolio(a)			JNL/MCM Oil & Gas Sector Portfolio			JNL/MCM Pacific Rim 30 Portfolio(b)			JNL/MCM S&P 10 Portfolio			JNL/MCM S&P 24 Portfolio			JNL/MCM S&P 400 MidCap Index Portfolio			JNL/MCM S&P 500 Index Portfolio			JNL/MCM S&P SMid 60 Portfolio(a)

Highest expense ratio
Period ended December 31, 2011

Unit Value	$	7.595955		$	9.687756		$	5.651868		$	23.708642		$	11.959022		$	5.612705		$	9.004054		$	12.737916		$	8.544069		$	9.479046
Total Return *		-13.10	%		-1.62	%		-26.55	%		-0.68	%		-4.82	%		-18.75	%		1.55	%		-5.87	%		-2.40	%		-10.98	%
Ratio of Expenses **		3.695	%		3.61	%		3.61	%		3.91	%		3.06	%		4.00	%		3.26	%		3.895	%		3.895	%		3.61	%

Period ended December 31, 2010

Unit Value	$	8.741516		$	9.847499		$	7.694809		$	23.870558		$	12.565053		$	6.908329		$	8.866352		$	13.532357		$	8.753917		$	10.648049
Total Return *		9.55	%		13.04	%		-1.36	%		14.54	%		9.49	%		7.04	%		12.82	%		21.03	%		10.07	%		16.48	%
Ratio of Expenses **		3.695	%		3.61	%		3.61	%		3.91	%		3.06	%		4.00	%		3.26	%		3.895	%		3.895	%		3.61	%

Period ended December 31, 2009

Unit Value	$	7.979799		$	8.711518		$	7.801081		$	20.840162		$	11.475909		$	6.454163		$	7.858512		$	11.181316		$	7.953366		$	9.141570
Total Return *		32.73	%		29.35	%		0.08	%***		15.48	%		16.00	%***		15.06	%		15.03	%		32.76	%		21.16	%		13.44	%***
Ratio of Expenses **		3.695	%		3.61	%		3.61	%		3.91	%		3.06	%		4.00	%		3.26	%		3.895	%		3.895	%		3.61	%

Period ended December 31, 2008

Unit Value	$	6.012211		$	6.734775		$	5.970626		$	18.046281		$	9.546820		$	5.609372		$	6.831992		$	8.422212		$	6.564522		$	5.911605
Total Return *		-48.04	%		-43.59	%		-47.72	%		-40.25	%		12.07	%***		-51.61	%		-5.28	%***		-39.97	%		-40.02	%		-32.38	%
Ratio of Expenses **		3.695	%		3.61	%		3.36	%		3.91	%		2.36	%		4.00	%		3.26	%		3.895	%		3.895	%		3.145	%

Period ended December 31, 2007

Unit Value	$	11.569752		$	11.938104		$	11.419846		$	30.200568			n/a		$	11.591185		$	10.513577		$	14.029655		$	10.945285		$	8.742381
Total Return *		13.27	%***		14.83	%		9.11	%***		30.07	%		n/a			0.89	%		-1.17	%***		3.32	%		0.87	%		-1.08	%***
Ratio of Expenses **		3.695	%		3.61	%		3.36	%		3.91	%		n/a			4.00	%		3.145	%		3.895	%		3.895	%		3.145	%

* Total return for period indicated, including changes in the value of the underlying fund, and reflects deductions for all items included in the expense ratio.The total return does not include any expenses assessed through the redemption of units, inclusion of these expenses in the calculation would result in a reduction in the total return presented.Total return for portfolios with no investment activity at period end is calculated based on the total return of the underlying mutual fund less expenses that are charged directly to the Separate Account.

(a) Commencement of operations April 30, 2007.

(b) Commencement of operations October 6, 2008.

Page 69

Jackson National Separate Account I

Notes to Financial Statements (continued)

Note 7 - Financial Highlights (continued)

	JNL/MCM JNL Optimized 5 Portfolio			JNL/MCM Nasdaq 25 Portfolio			JNL/MCM NYSE International 25 Portfolio(a)			JNL/MCM Oil & Gas Sector Portfolio			JNL/MCM Pacific Rim 30 Portfolio(b)			JNL/MCM S&P 10 Portfolio			JNL/MCM S&P 24 Portfolio			JNL/MCM S&P 400 MidCap Index Portfolio			JNL/MCM S&P 500 Index Portfolio			JNL/MCM S&P SMid 60 Portfolio(a)

Lowest expense ratio
Period ended December 31, 2011

Unit Value	$	8.849116		$	11.702614		$	6.384835		$	34.109903		$	12.782667		$	8.164092		$	10.234481		$	16.994019		$	11.398882		$	10.708353
Total Return *		-10.74	%		0.97	%		-24.61	%		2.25	%		-2.85	%		-16.29	%		3.87	%		-3.11	%		0.46	%		-8.63	%
Ratio of Expenses **		1.00	%		1.00	%		1.00	%		1.00	%		1.00	%		1.00	%		1.00	%		1.00	%		1.00	%		1.00	%

Period ended December 31, 2010

Unit Value	$	9.913614		$	11.590048		$	8.469371		$	33.360487		$	13.157268		$	9.752472		$	9.853359		$	17.540101		$	11.346466		$	11.719891
Total Return *		12.54	%		16.03	%		1.25	%		17.92	%		11.77	%		10.30	%		15.40	%		24.58	%		13.30	%		19.56	%
Ratio of Expenses **		1.00	%		1.00	%		1.00	%		1.00	%		1.00	%		1.00	%		1.00	%		1.00	%		1.00	%		1.00	%

Period ended December 31, 2009

Unit Value	$	8.809122		$	9.988556		$	8.365151		$	28.289917		$	11.771783		$	8.842030		$	8.538156		$	14.079208		$	10.014643		$	9.802589
Total Return *		36.35	%		32.77	%		34.69	%		18.89	%		29.12	%***		18.56	%		17.65	%		36.66	%		24.72	%		59.98	%
Ratio of Expenses **		1.00	%		1.00	%		1.00	%		1.00	%		1.00	%		1.00	%		1.00	%		1.00	%		1.00	%		1.00	%

Period ended December 31, 2008

Unit Value	$	6.460537		$	7.523099		$	6.210757		$	23.795171		$	9.573796		$	7.457573		$	7.257030		$	10.302385		$	8.029980		$	6.127313
Total Return *		-46.62	%		-26.43	%***		-40.36	%***		-38.48	%		0.87	%***		-50.13	%		-22.00	%***		-38.21	%		-38.26	%		-25.70	%***
Ratio of Expenses **		1.00	%		1.00	%		1.00	%		1.00	%		1.15	%		1.00	%		1.00	%		1.00	%		1.00	%		1.00	%

Period ended December 31, 2007

Unit Value	$	12.101901		$	12.949952		$	11.594407		$	38.679651			n/a		$	14.954809		$	10.878501		$	16.671900		$	13.006640		$	8.863185
Total Return *		2.26	%***		17.77	%		12.01	%***		33.93	%		n/a			3.98	%		6.39	%		6.38	%		3.85	%		-13.45	%***
Ratio of Expenses **		1.00	%		1.10	%		1.10	%		1.00	%		n/a			1.00	%		1.10	%		1.00	%		1.00	%		1.10	%

(a) Commencement of operations April 30, 2007.

(b) Commencement of operations October 6, 2008.

Page 70

Jackson National Separate Account I

Notes to Financial Statements (continued)

Note 7 - Financial Highlights (continued)

	JNL/MCM JNL Optimized 5 Portfolio			JNL/MCM Nasdaq 25 Portfolio			JNL/MCM NYSE International 25 Portfolio(a)			JNL/MCM Oil & Gas Sector Portfolio			JNL/MCM Pacific Rim 30 Portfolio(b)			JNL/MCM S&P 10 Portfolio			JNL/MCM S&P 24 Portfolio			JNL/MCM S&P 400 MidCap Index Portfolio			JNL/MCM S&P 500 Index Portfolio			JNL/MCM S&P SMid 60 Portfolio(a)

Portfolio data
Period ended December 31, 2011

Net Assets (in thousands)	$	325,680		$	147,276		$	66,407		$	796,202		$	41,344		$	205,874		$	53,979		$	463,970		$	892,032		$	158,327
Units Outstanding (in thousands)		38,068			13,156			10,686			25,205			3,288			27,137			5,444			28,874			81,632			15,191
Investment Income Ratio *		1.82	%		0.58	%		1.97	%		0.76	%		1.51	%		0.00	%		0.50	%		0.63	%		1.83	%		0.71	%

Period ended December 31, 2010

Net Assets (in thousands)	$	408,700		$	113,840		$	95,366		$	593,299		$	35,549		$	289,551		$	45,375		$	465,805		$	811,001		$	174,748
Units Outstanding (in thousands)		42,419			10,220			11,519			19,159			2,735			31,893			4,730			27,996			74,196			15,266
Investment Income Ratio *		2.00	%		0.21	%		2.20	%		1.08	%		0.00	%		0.00	%		0.31	%		0.70	%		1.42	%		0.09	%

Period ended December 31, 2009

Net Assets (in thousands)	$	394,466		$	84,029		$	79,880		$	434,345		$	15,722		$	320,366		$	32,401		$	359,664		$	662,896		$	123,129
Units Outstanding (in thousands)		45,827			8,721			9,719			16,524			1,345			38,784			3,884			26,849			68,254			12,792
Investment Income Ratio *		2.75	%		0.00	%		4.80	%		0.98	%		2.92	%		0.00	%		0.24	%		1.26	%		1.69	%		1.07	%

Period ended December 31, 2008

Net Assets (in thousands)	$	288,762		$	52,148		$	50,700		$	303,559		$	489		$	319,741		$	25,914		$	235,462		$	352,980		$	40,940
Units Outstanding (in thousands)		45,495			7,151			8,265			13,755			51			45,660			3,643			23,887			45,784			6,769
Investment Income Ratio *		0.01	%		0.02	%		0.01	%		0.56	%		0.00	%		0.00	%		0.00	%		1.06	%		1.65	%		0.01	%

Period ended December 31, 2007

Net Assets (in thousands)	$	375,799		$	106,385		$	63,561		$	443,808			n/a		$	833,493		$	22,726		$	414,090		$	561,046		$	32,447
Units Outstanding (in thousands)		31,420			8,393			5,504			12,229			n/a			58,973			2,111			25,780			44,590			3,676
Investment Income Ratio *		3.74	%		0.00	%		6.89	%		1.09	%		n/a			0.00	%		0.00	%		1.20	%		1.41	%		5.03	%

(a) Commencement of operations April 30, 2007.

(b) Commencement of operations October 6, 2008.

Page 71

Jackson National Separate Account I

Notes to Financial Statements (continued)

Note 7 - Financial Highlights (continued)

	JNL/MCM Select Small-Cap Portfolio			JNL/MCM Small Cap Index Portfolio			JNL/MCM Technology Sector Portfolio			JNL/MCM Value Line 30 Portfolio			JNL/MCM VIP Portfolio			JNL/ Oppenheimer Global Growth Portfolio			JNL/PAM Asia ex-Japan Portfolio(b)			JNL/PAM China-India Portfolio(b)			JNL/PIMCO Real Return Portfolio(a)			JNL/PIMCO Total Return Bond Portfolio

Highest expense ratio
Period ended December 31, 2011

Unit Value	$	9.493188		$	11.193412		$	5.182166		$	8.160986		$	9.264238		$	10.027837		$	6.737610		$	5.610913		$	12.596112		$	13.403110
Total Return *		-2.61	%		-7.98	%		-3.95	%		-25.77	%		-6.98	%		-11.47	%		-23.98	%		-30.44	%		7.76	%		0.82	%
Ratio of Expenses **		4.00	%		3.895	%		3.71	%		3.695	%		3.51	%		3.61	%		3.61	%		3.61	%		3.61	%		3.91	%

Period ended December 31, 2010

Unit Value	$	9.747222		$	12.164682		$	5.395146		$	10.994154		$	9.958882		$	11.326454		$	8.863133		$	8.066327		$	11.688683		$	13.294261
Total Return *		10.71	%		21.50	%		8.02	%		18.01	%		11.34	%		11.29	%		15.17	%		12.78	%		0.26	%***		3.45	%
Ratio of Expenses **		4.00	%		3.895	%		3.71	%		3.695	%		3.51	%		3.61	%		3.61	%		3.61	%		3.61	%		3.91	%

Period ended December 31, 2009

Unit Value	$	8.803901		$	10.012294		$	4.994363		$	9.316264		$	8.944430		$	10.177547		$	7.695688		$	7.152263		$	11.271641		$	12.851486
Total Return *		0.78	%		22.51	%		57.85	%		10.52	%		19.68	%		34.48	%		5.39	%***		8.83	%***		13.16	%		11.03	%
Ratio of Expenses **		4.00	%		3.895	%		3.71	%		3.695	%		3.51	%		3.61	%		3.61	%		3.61	%		3.545	%		3.91	%

Period ended December 31, 2008

Unit Value	$	8.735721		$	8.172661		$	3.163917		$	8.429241		$	7.473857		$	7.568122		$	4.725637		$	4.086552		$	9.960680		$	11.574992
Total Return *		-42.41	%		-37.41	%		-45.48	%		-49.35	%		-44.76	%		-42.96	%		-49.80	%***		-50.99	%***		-11.52	%***		-3.45	%
Ratio of Expenses **		4.00	%		3.895	%		3.71	%		3.695	%		3.51	%		3.61	%		3.21	%		3.21	%		3.545	%		3.91	%

Period ended December 31, 2007

Unit Value	$	15.168172		$	13.058461		$	5.803200		$	16.642550		$	13.529815		$	13.268141			n/a			n/a		$	10.761052		$	11.988650
Total Return *		-13.98	%		-5.87	%		10.37	%		15.13	%		6.91	%		2.54	%		n/a			n/a			5.72	%***		4.07	%
Ratio of Expenses **		4.00	%		3.895	%		3.71	%		3.695	%		3.51	%		3.61	%		n/a			n/a			3.145	%		3.91	%

(a) Commencement of operations January 16, 2007.

(b) Commencement of operations December 3, 2007.

Page 72

Jackson National Separate Account I

Notes to Financial Statements (continued)

Note 7 - Financial Highlights (continued)

	JNL/MCM Select Small-Cap Portfolio			JNL/MCM Small Cap Index Portfolio			JNL/MCM Technology Sector Portfolio			JNL/MCM Value Line 30 Portfolio			JNL/MCM VIP Portfolio			JNL/ Oppenheimer Global Growth Portfolio			JNL/PAM Asia ex-Japan Portfolio(b)			JNL/PAM China-India Portfolio(b)			JNL/PIMCO Real Return Portfolio(a)			JNL/PIMCO Total Return Bond Portfolio

Lowest expense ratio
Period ended December 31, 2011

Unit Value	$	13.808602		$	14.933609		$	7.272040		$	9.919046		$	11.109677		$	13.248085		$	7.494181		$	6.241003		$	14.335478		$	20.048385
Total Return *		0.35	%		-5.29	%		-1.32	%		-23.75	%		-4.62	%		-9.13	%		-21.98	%		-28.61	%		10.61	%		3.79	%
Ratio of Expenses **		1.00	%		1.00	%		1.00	%		1.00	%		1.00	%		1.00	%		1.00	%		1.00	%		1.00	%		1.00	%

Period ended December 31, 2010

Unit Value	$	13.760192		$	15.767515		$	7.369022		$	13.008158		$	11.647737		$	14.579247		$	9.605093		$	8.741630		$	12.960938		$	19.316750
Total Return *		14.09	%		25.07	%		10.99	%		21.23	%		14.17	%		14.23	%		18.22	%		15.76	%		6.65	%		6.50	%
Ratio of Expenses **		1.00	%		1.00	%		1.00	%		1.00	%		1.00	%		1.00	%		1.00	%		1.00	%		1.00	%		1.00	%

Period ended December 31, 2009

Unit Value	$	12.061163		$	12.607306		$	6.639203		$	10.729784		$	10.202293		$	12.762875		$	8.125063		$	7.551324		$	12.152635		$	18.137786
Total Return *		3.85	%		26.11	%		62.19	%		13.54	%		22.72	%		38.04	%		34.34	%***		0.87	%***		16.08	%		14.31	%
Ratio of Expenses **		1.00	%		1.00	%		1.00	%		1.00	%		1.00	%		1.00	%		1.00	%		1.00	%		1.00	%		1.00	%

Period ended December 31, 2008

Unit Value	$	11.614036		$	9.997206		$	4.093468		$	9.450010		$	8.313699		$	9.246087		$	4.833989		$	4.180148		$	10.469333		$	15.867781
Total Return *		-40.65	%		-35.58	%		-43.98	%		-47.97	%		-39.16	%***		-41.45	%		-47.99	%***		-49.76	%***		-8.88	%***		-0.60	%
Ratio of Expenses **		1.00	%		1.00	%		1.00	%		1.00	%		1.00	%		1.00	%		1.10	%		1.10	%		1.00	%		1.00	%

Period ended December 31, 2007

Unit Value	$	19.569867		$	15.517913		$	7.307406		$	18.161781		$	14.629951		$	15.792289			n/a			n/a		$	10.973974		$	15.963557
Total Return *		-11.35	%		-3.09	%		13.41	%		18.29	%		9.54	%		5.26	%		n/a			n/a			9.72	%***		7.16	%
Ratio of Expenses **		1.00	%		1.00	%		1.00	%		1.00	%		1.10	%		1.00	%		n/a			n/a			1.10	%		1.00	%

(a) Commencement of operations January 16, 2007.

(b) Commencement of operations December 3, 2007.

Page 73

Jackson National Separate Account I

Notes to Financial Statements (continued)

Note 7 - Financial Highlights (continued)

																JNL/
	JNL/MCM			JNL/MCM			JNL/MCM			JNL/MCM						Oppenheimer			JNL/PAM			JNL/PAM			JNL/PIMCO			JNL/PIMCO
	Select Small-Cap			Small Cap			Technology			Value Line 30			JNL/MCM			Global Growth			Asia ex-Japan			China-India			Real Return			Total Return
	Portfolio			Index Portfolio			Sector Portfolio			Portfolio			VIP Portfolio			Portfolio			Portfolio(b)			Portfolio(b)			Portfolio(a)			Bond Portfolio

Portfolio data
Period ended December 31, 2011

Net Assets (in thousands)	$	239,195		$	411,164		$	313,873		$	366,236		$	244,474		$	284,666		$	100,655		$	272,734		$	1,526,239		$	2,980,927
Units Outstanding (in thousands)		18,646			29,011			46,394			38,660			22,972			22,760			13,732			44,632			109,600			161,304
Investment Income Ratio *		0.99	%		0.77	%		0.20	%		0.00	%		1.31	%		0.62	%		0.41	%		0.34	%		0.99	%		3.19	%

Period ended December 31, 2010

Net Assets (in thousands)	$	278,923		$	444,511		$	272,752		$	547,478		$	285,252		$	247,329		$	141,098		$	362,908		$	972,580		$	2,500,105
Units Outstanding (in thousands)		21,759			29,615			39,671			43,841			25,456			17,907			14,944			42,196			76,831			140,076
Investment Income Ratio *		0.49	%		0.65	%		0.17	%		0.60	%		2.32	%		0.85	%		0.13	%		0.00	%		1.48	%		2.29	%

Period ended December 31, 2009

Net Assets (in thousands)	$	288,802		$	363,256		$	225,292		$	524,476		$	282,986		$	173,881		$	96,476		$	216,740		$	694,975		$	1,673,846
Units Outstanding (in thousands)		25,618			30,126			36,401			50,623			28,696			14,359			12,009			29,002			58,299			99,987
Investment Income Ratio *		0.93	%		0.93	%		0.12	%		0.13	%		1.73	%		1.69	%		0.01	%		0.00	%		2.99	%		3.12	%

Period ended December 31, 2008

Net Assets (in thousands)	$	298,383		$	193,801		$	49,761		$	517,873		$	228,217		$	104,997		$	3,934		$	24,871		$	423,346		$	871,072
Units Outstanding (in thousands)		27,339			20,221			13,023			56,424			28,250			11,924			819			5,964			41,005			59,558
Investment Income Ratio *		0.28	%		1.28	%		0.02	%		0.30	%		1.50	%		1.34	%		1.34	%		0.00	%		1.51	%		4.36	%

Period ended December 31, 2007

Net Assets (in thousands)	$	628,445		$	316,673		$	99,763		$	1,099,740		$	422,290		$	196,599			n/a			n/a		$	75,390		$	598,012
Units Outstanding (in thousands)		34,012			21,146			14,472			61,931			29,419			13,002			n/a			n/a			6,906			40,603
Investment Income Ratio *		7.92	%		1.36	%		0.09	%		0.00	%		3.04	%		1.06	%		n/a			n/a			0.00	%		5.28	%

(a) Commencement of operations January 16, 2007.

(b) Commencement of operations December 3, 2007.

Page 74

Jackson National Separate Account I

Notes to Financial Statements (continued)

Note 7 - Financial Highlights (continued)

	JNL/PPM America Floating Rate Income Portfolio			JNL/ PPM America High Yield Bond Portfolio			JNL/ PPM America Mid Cap Value Portfolio(b)			JNL/ PPM America Small Cap Value Portfolio(b)			JNL/ PPM America Value Equity Portfolio			JNL/ Red Rocks Listed Private Equity Portfolio(c)			JNL/S&P 4 Portfolio(a)			JNL/S&P Competitive Advantage Portfolio(a)			JNL/S&P Dividend Income & Growth Portfolio(a)			JNL/S&P Intrinsic Value Portfolio(a)

Highest expense ratio
Period ended December 31, 2011

Unit Value	$	9.763142		$	11.900255		$	8.802847		$	8.679633		$	11.826380		$	7.716122		$	10.016290		$	10.858481		$	10.299783		$	10.510325
Total Return *		3.18	%***		0.97	%		-10.69	%		-11.28	%		-8.61	%		-20.79	%		2.12	%		6.62	%		8.56	%		2.75	%
Ratio of Expenses **		3.11	%		3.61	%		3.61	%		3.61	%		3.61	%		3.51	%		3.61	%		3.61	%		3.51	%		3.61	%

Period ended December 31, 2010

Unit Value		n/a		$	11.785726		$	9.855985		$	9.782878		$	12.941093		$	9.741513		$	9.807963		$	10.184414		$	9.488017		$	10.229163
Total Return *		n/a			11.53	%		24.98	%		23.18	%		9.65	%***		8.76	%***		9.76	%		8.63	%		14.16	%		10.33	%
Ratio of Expenses **		n/a			3.61	%		3.61	%		3.61	%		3.61	%		3.51	%		3.61	%		3.61	%		3.51	%		3.61	%

Period ended December 31, 2009

Unit Value		n/a		$	10.567026		$	7.885776		$	7.941697		$	11.592092		$	8.002272		$	8.935882		$	9.375145		$	8.310996		$	9.271159
Total Return *		n/a			41.12	%		2.89	%***		6.35	%***		39.59	%		8.22	%***		36.82	%		9.43	%***		39.26	%***		13.04	%***
Ratio of Expenses **		n/a			3.61	%		3.61	%		3.61	%		3.51	%		3.36	%		3.61	%		3.61	%		3.51	%		3.61	%

Period ended December 31, 2008

Unit Value		n/a		$	7.488176		$	5.576767		$	6.178402		$	8.304331		$	5.901213		$	6.531198		$	6.765550		$	6.991175		$	6.144531
Total Return *		n/a			-33.21	%		-47.15	%***		-33.43	%***		-49.03	%		-24.84	%***		-31.69	%***		-28.46	%***		-23.25	%***		-33.54	%***
Ratio of Expenses **		n/a			3.61	%		2.91	%		2.91	%		3.51	%		3.095	%		3.61	%		3.26	%		3.26	%		3.26	%

Period ended December 31, 2007

Unit Value		n/a		$	11.211535			n/a			n/a		$	16.293261			n/a		$	9.909378		$	9.904249		$	9.755667		$	9.906975
Total Return *		n/a			-4.63	%		n/a			n/a			-7.99	%***		n/a			-0.63	%***		-0.96	%***		0.38	%***		-0.93	%***
Ratio of Expenses **		n/a			3.61	%		n/a			n/a			3.51	%		n/a			2.71	%		2.845	%		2.71	%		2.845	%

(a) Commencement of operations December 3, 2007.

(b) Commencement of operations March 31, 2008.

Page 75

Jackson National Separate Account I

Notes to Financial Statements (continued)

Note 7 - Financial Highlights (continued)

	JNL/PPM America Floating Rate Income Portfolio			JNL/ PPM America High Yield Bond Portfolio			JNL/ PPM America Mid Cap Value Portfolio(b)			JNL/ PPM America Small Cap Value Portfolio(b)			JNL/ PPM America Value Equity Portfolio			JNL/ Red Rocks Listed Private Equity Portfolio(c)			JNL/S&P 4 Portfolio(a)			JNL/S&P Competitive Advantage Portfolio(a)			JNL/S&P Dividend Income & Growth Portfolio(a)			JNL/S&P Intrinsic Value Portfolio(a)

Lowest expense ratio
Period ended December 31, 2011

Unit Value	$	9.970069		$	17.085087		$	9.672001		$	9.572316		$	17.957638		$	8.368520		$	11.140221		$	12.077498		$	11.409605		$	11.690770
Total Return *		-1.04	%***		3.63	%		-8.42	%		12.25	%***		-6.30	%		-18.78	%		12.09	%***		9.43	%		11.31	%		5.46	%
Ratio of Expenses **		1.00	%		1.00	%		1.10	%		1.00	%		1.10	%		1.00	%		1.00	%		1.00	%		1.00	%		1.00	%

Period ended December 31, 2010

Unit Value		n/a		$	16.486250		$	10.561409		$	10.483034		$	19.164505		$	10.303812		$	10.595861		$	11.036703		$	10.250525		$	11.085669
Total Return *		n/a			14.48	%		28.16	%		26.31	%		16.17	%		25.06	%		12.55	%		11.50	%		17.06	%		13.25	%
Ratio of Expenses **		n/a			1.00	%		1.10	%		1.10	%		1.10	%		1.00	%		1.10	%		1.00	%		1.00	%		1.00	%

Period ended December 31, 2009

Unit Value		n/a		$	14.400860		$	8.240756		$	8.299179		$	16.496448		$	8.239112		$	9.414414		$	9.897945		$	8.756332		$	9.788398
Total Return *		n/a			44.85	%		45.77	%		32.51	%		43.00	%		38.93	%		40.30	%		48.51	%***		38.48	%***		74.12	%***
Ratio of Expenses **		n/a			1.00	%		1.10	%		1.10	%		1.10	%		1.00	%		1.10	%		1.00	%		1.00	%		1.00	%

Period ended December 31, 2008

Unit Value		n/a		$	9.942050		$	5.653172		$	6.263202		$	11.536294		$	5.930376		$	6.710374		$	6.924855		$	7.155794		$	6.289289
Total Return *		n/a			-31.44	%		-47.05	%***		-40.61	%***		-47.79	%		-31.82	%***		-28.15	%***		-24.77	%***		-22.85	%***		-31.17	%***
Ratio of Expenses **		n/a			1.00	%		1.10	%		1.10	%		1.10	%		1.00	%		1.10	%		1.10	%		1.10	%		1.10	%

Period ended December 31, 2007

Unit Value		n/a		$	14.502044			n/a			n/a		$	22.095438			n/a		$	9.921241		$	9.917140		$	9.766570		$	9.919101
Total Return *		n/a			-2.09	%		n/a			n/a			-6.66	%		n/a			-1.84	%***		-1.88	%***		-2.62	%***		-0.81	%***
Ratio of Expenses **		n/a			1.00	%		n/a			n/a			1.10	%		n/a			1.15	%		1.15	%		1.25	%		1.25	%

(a) Commencement of operations December 3, 2007.

(b) Commencement of operations March 31, 2008.

Page 76

Jackson National Separate Account I

Notes to Financial Statements (continued)

Note 7 - Financial Highlights (continued)

	JNL/PPM America Floating Rate Income Portfolio			JNL/ PPM America High Yield Bond Portfolio			JNL/ PPM America Mid Cap Value Portfolio(b)			JNL/ PPM America Small Cap Value Portfolio(b)			JNL/ PPM America Value Equity Portfolio			JNL/ Red Rocks Listed Private Equity Portfolio(c)			JNL/S&P 4 Portfolio(a)			JNL/S&P Competitive Advantage Portfolio(a)			JNL/S&P Dividend Income & Growth Portfolio(a)			JNL/S&P Intrinsic Value Portfolio(a)

Portfolio data
Period ended December 31, 2011

Net Assets (in thousands)	$	129,210		$	870,828		$	87,886		$	65,195		$	97,154		$	308,657		$	956,114		$	153,398		$	529,069		$	197,440
Units Outstanding (in thousands)		13,038			55,802			9,255			6,964			6,104			37,524			87,824			12,987			47,429			17,293
Investment Income Ratio *		0.00	%		6.97	%		0.10	%		0.19	%		1.12	%		8.66	%		4.94	%		1.01	%		1.84	%		0.97	%

Period ended December 31, 2010

Net Assets (in thousands)		n/a		$	721,610		$	83,276		$	58,322		$	106,819		$	279,890		$	797,263		$	83,408		$	216,196		$	105,541
Units Outstanding (in thousands)		n/a			47,902			8,009			5,650			6,283			27,501			76,365			7,689			21,452			9,700
Investment Income Ratio *		n/a			7.60	%		0.00	%		0.21	%		1.21	%		0.25	%		0.00	%		0.75	%		1.79	%		0.75	%

Period ended December 31, 2009

Net Assets (in thousands)		n/a		$	491,310		$	19,225		$	14,748		$	88,889		$	111,569		$	592,013		$	88,880		$	79,218		$	86,341
Units Outstanding (in thousands)		n/a			37,428			2,359			1,795			6,119			13,636			63,553			9,096			9,158			8,941
Investment Income Ratio *		n/a			8.55	%		0.71	%		0.61	%		5.72	%		5.63	%		1.22	%		0.02	%		0.04	%		0.03	%

Period ended December 31, 2008

Net Assets (in thousands)		n/a		$	172,415		$	3,373		$	4,763		$	55,567		$	12,102		$	255,729		$	26,645		$	33,656		$	29,551
Units Outstanding (in thousands)		n/a			19,370			599			764			5,526			2,044			38,346			3,872			4,731			4,725
Investment Income Ratio *		n/a			8.88	%		0.72	%		0.90	%		2.47	%		0.97	%		0.01	%		1.47	%		4.82	%		1.24	%

Period ended December 31, 2007

Net Assets (in thousands)		n/a		$	267,490			n/a			n/a		$	119,369			n/a		$	22,022		$	6,231		$	738		$	11,822
Units Outstanding (in thousands)		n/a			20,646			n/a			n/a			6,245			n/a			2,221			629			76			1,193
Investment Income Ratio *		n/a			7.54	%		n/a			n/a			0.60	%		n/a			0.00	%		0.07	%		0.13	%		0.09	%

(a) Commencement of operations December 3, 2007.

(b) Commencement of operations March 31, 2008.

Page 77

Jackson National Separate Account I

Notes to Financial Statements (continued)

Note 7 - Financial Highlights (continued)

	JNL/ S&P Managed Aggressive Growth Portfolio			JNL/ S&P Managed Conservative Portfolio			JNL/ S&P Managed Growth Portfolio			JNL/ S&P Managed Moderate Portfolio			JNL/ S&P Managed Moderate Growth Portfolio			JNL/S&P Total Yield Portfolio(a)			JNL/T. Rowe Price Established Growth Portfolio			JNL/T. Rowe Price Mid-Cap Growth Portfolio			JNL/T. Rowe Price Short-Term Bond Portfolio			JNL/T. Rowe Price Value Portfolio

Highest expense ratio
Period ended December 31, 2011

Unit Value	$	10.125196		$	10.337958		$	10.449663		$	10.561571		$	10.359662		$	8.323496		$	19.355494		$	31.351508		$	9.301062		$	10.640263
Total Return *		-8.29	%		-0.61	%		-6.74	%		-2.81	%		-5.14	%		-8.75	%		-4.96	%		-5.23	%		-2.21	%		-5.82	%
Ratio of Expenses **		3.75	%		3.695	%		3.80	%		3.695	%		4.01	%		3.61	%		3.91	%		3.91	%		3.61	%		3.91	%

Period ended December 31, 2010

Unit Value	$	11.040307		$	10.401392		$	11.205082		$	10.867131		$	10.920968		$	9.121174		$	20.365095		$	33.080837		$	9.510825		$	11.297764
Total Return *		12.78	%		4.76	%		11.79	%		7.27	%		8.73	%		6.18	%		12.29	%		22.96	%		-0.72	%		11.45	%
Ratio of Expenses **		3.75	%		3.695	%		3.80	%		3.695	%		4.01	%		3.61	%		3.91	%		3.91	%		3.61	%		3.91	%

Period ended December 31, 2009

Unit Value	$	9.789636		$	9.929091		$	10.023459		$	10.131046		$	10.043857		$	8.590651		$	18.136812		$	26.903923		$	9.579367		$	10.137378
Total Return *		26.22	%		9.41	%		23.29	%		14.32	%		18.60	%		2.27	%***		37.99	%		41.21	%		-0.28	%***		31.83	%
Ratio of Expenses **		3.75	%		3.695	%		3.80	%		3.695	%		4.01	%		3.61	%		3.91	%		3.91	%		3.61	%		3.91	%

Period ended December 31, 2008

Unit Value	$	7.755799		$	9.075254		$	8.130179		$	8.861798		$	8.468455		$	6.240794		$	13.143650		$	19.052733		$	9.327447		$	7.689738
Total Return *		-41.40	%		-16.88	%		-37.77	%		-24.10	%		-30.35	%		-35.57	%***		-45.04	%		-42.92	%		-8.94	%		-42.75	%
Ratio of Expenses **		3.75	%		3.695	%		3.80	%		3.695	%		4.01	%		3.51	%		3.91	%		3.91	%		3.21	%		3.91	%

Period ended December 31, 2007

Unit Value	$	13.234462		$	10.918213		$	13.064157		$	11.675144		$	12.159040		$	10.052412		$	23.914187		$	33.381368		$	10.243295		$	13.432137
Total Return *		5.13	%		2.42	%		4.63	%		3.81	%		4.36	%		0.52	%***		5.87	%		12.70	%		0.45	%***		-3.04	%
Ratio of Expenses **		3.75	%		3.695	%		3.80	%		3.695	%		4.01	%		2.845	%		3.91	%		3.91	%		3.21	%		3.91	%

(a) Commencement of operations December 3, 2007.

Page 78

Jackson National Separate Account I

Notes to Financial Statements (continued)

Note 7 - Financial Highlights (continued)

	JNL/ S&P Managed Aggressive Growth Portfolio			JNL/ S&P Managed Conservative Portfolio			JNL/ S&P Managed Growth Portfolio			JNL/ S&P Managed Moderate Portfolio			JNL/ S&P Managed Moderate Growth Portfolio			JNL/S&P Total Yield Portfolio(a)			JNL/T. Rowe Price Established Growth Portfolio			JNL/T. Rowe Price Mid-Cap Growth Portfolio			JNL/T. Rowe Price Short-Term Bond Portfolio			JNL/T. Rowe Price Value Portfolio

Lowest expense ratio
Period ended December 31, 2011

Unit Value	$	14.773287		$	12.564577		$	15.349276		$	12.836407		$	15.662054		$	9.258036		$	31.410950		$	50.879218		$	10.785135		$	14.943349
Total Return *		-5.74	%		2.10	%		-4.10	%		-0.16	%***		-2.25	%***		-6.34	%		-2.16	%		-2.44	%		0.37	%		-3.05	%
Ratio of Expenses **		1.00	%		1.00	%		1.00	%		1.00	%		1.00	%		1.00	%		1.00	%		1.00	%		1.00	%		1.00	%

Period ended December 31, 2010

Unit Value	$	15.672705		$	12.306413		$	16.005626		$	12.777857		$	15.820096		$	9.884599		$	32.104002		$	52.149990		$	10.745000		$	15.412882
Total Return *		15.92	%		7.62	%		14.96	%		10.09	%		11.94	%		8.98	%		15.60	%		26.59	%		1.91	%		14.74	%
Ratio of Expenses **		1.00	%		1.00	%		1.00	%		1.10	%		1.10	%		1.00	%		1.00	%		1.00	%		1.00	%		1.00	%

Period ended December 31, 2009

Unit Value	$	13.520264		$	11.435228		$	13.922400		$	11.607218		$	14.132179		$	9.069807		$	27.771231		$	41.195958		$	10.543119		$	13.433157
Total Return *		29.74	%		16.10	%***		26.79	%		17.33	%		22.11	%		62.22	%***		42.07	%		45.38	%		6.57	%		35.72	%
Ratio of Expenses **		1.00	%		1.00	%		1.00	%		1.10	%		1.10	%		1.00	%		1.00	%		1.00	%		1.00	%		1.00	%

Period ended December 31, 2008

Unit Value	$	10.420786		$	10.131175		$	10.980959		$	9.892894		$	11.573735		$	6.404924		$	19.548020		$	28.337674		$	9.893602		$	9.897450
Total Return *		-39.76	%		-14.69	%		-36.00	%		-22.10	%		-28.30	%		-29.41	%***		-43.41	%		-41.24	%		-1.77	%***		-41.06	%
Ratio of Expenses **		1.00	%		1.10	%		1.00	%		1.10	%		1.10	%		1.10	%		1.00	%		1.00	%		1.00	%		1.00	%

Period ended December 31, 2007

Unit Value	$	17.299623		$	11.876307		$	17.157763		$	12.699683		$	16.140967		$	10.064737		$	34.546285		$	48.224532		$	10.610338		$	16.792708
Total Return *		8.08	%		5.13	%		4.78	%***		6.55	%		7.46	%		0.65	%***		9.01	%		16.05	%		3.67	%		-0.16	%
Ratio of Expenses **		1.00	%		1.10	%		1.00	%		1.10	%		1.10	%		1.25	%		1.00	%		1.00	%		1.10	%		1.00	%

(a) Commencement of operations December 3, 2007.

Page 79

Jackson National Separate Account I

Notes to Financial Statements (continued)

Note 7 - Financial Highlights (continued)

	JNL/ S&P Managed Aggressive Growth Portfolio			JNL/ S&P Managed Conservative Portfolio			JNL/ S&P Managed Growth Portfolio			JNL/ S&P Managed Moderate Portfolio			JNL/ S&P Managed Moderate Growth Portfolio			JNL/S&P Total Yield Portfolio(a)			JNL/T. Rowe Price Established Growth Portfolio			JNL/T. Rowe Price Mid-Cap Growth Portfolio			JNL/T. Rowe Price Short-Term Bond Portfolio			JNL/T. Rowe Price Value Portfolio

Portfolio data
Period ended December 31, 2011

Net Assets (in thousands)	$	748,866		$	1,187,614		$	2,273,056		$	1,942,414		$	3,240,548		$	80,015		$	901,594		$	1,176,491		$	493,477		$	431,971
Units Outstanding (in thousands)		54,285			98,525			158,754			157,318			222,293			8,851			31,868			25,681			47,268			30,832
Investment Income Ratio *		0.66	%		2.39	%		0.73	%		1.97	%		1.64	%		1.22	%		0.00	%		0.02	%		1.27	%		1.37	%

Period ended December 31, 2010

Net Assets (in thousands)	$	694,558		$	886,035		$	1,946,317		$	1,514,845		$	2,629,579		$	64,956		$	782,772		$	981,793		$	334,098		$	411,509
Units Outstanding (in thousands)		47,392			74,750			130,135			122,023			176,006			6,691			27,158			21,009			31,935			28,398
Investment Income Ratio *		0.76	%		2.60	%		1.05	%		2.16	%		1.39	%		0.74	%		0.04	%		0.20	%		1.38	%		1.03	%

Period ended December 31, 2009

Net Assets (in thousands)	$	508,673		$	572,713		$	1,329,575		$	930,311		$	1,625,059		$	53,501		$	548,364		$	590,369		$	182,385		$	318,777
Units Outstanding (in thousands)		40,161			51,869			102,211			82,390			122,140			5,976			22,175			16,143			17,700			25,158
Investment Income Ratio *		2.48	%		2.03	%		2.25	%		1.53	%		0.85	%		0.02	%		0.33	%		0.00	%		3.80	%		1.73	%

Period ended December 31, 2008

Net Assets (in thousands)	$	334,779		$	374,871		$	721,594		$	511,031		$	902,365		$	28,399		$	301,125		$	309,196		$	87,244		$	204,240
Units Outstanding (in thousands)		34,273			38,038			70,370			53,018			83,111			4,462			17,567			12,488			8,978			21,770
Investment Income Ratio *		0.37	%		4.19	%		0.55	%		4.00	%		2.28	%		1.84	%		0.08	%		0.00	%		4.21	%		1.90	%

Period ended December 31, 2007

Net Assets (in thousands)	$	606,719		$	240,837		$	1,201,073		$	475,928		$	1,251,889		$	3,265		$	558,543		$	510,648		$	65,966		$	367,321
Units Outstanding (in thousands)		37,210			20,751			74,650			38,280			82,230			325			18,570			12,275			6,283			22,938
Investment Income Ratio *		1.91	%		3.16	%		1.70	%		3.14	%		2.24	%		0.05	%		1.07	%		1.71	%		3.89	%		2.29	%

(a) Commencement of operations December 3, 2007.

Page 80

Jackson National Separate Account I

Notes to Financial Statements (continued)

Note 7 - Financial Highlights (continued)

	JNL/WMC			JNL/WMC			JNL/WMC
	Balanced			Money Market			Value
	Portfolio			Portfolio			Portfolio

Highest expense ratio
Period ended December 31, 2011

Unit Value	$	19.567657		$	8.634066		$	15.643046
Total Return *		-0.57	%		-3.67	%		-5.61	%
Ratio of Expenses **		3.80	%		3.75	%		3.70	%

Period ended December 31, 2010

Unit Value	$	19.680014		$	8.962684		$	16.572366
Total Return *		6.70	%		-3.68	%		9.57	%
Ratio of Expenses **		3.80	%		3.75	%		3.70	%

Period ended December 31, 2009

Unit Value	$	18.445088		$	9.305184		$	15.125413
Total Return *		15.23	%		-3.54	%		19.48	%
Ratio of Expenses **		3.80	%		3.75	%		3.70	%

Period ended December 31, 2008

Unit Value	$	16.007656		$	9.646545		$	12.659714
Total Return *		-23.68	%		-1.57	%		-35.77	%
Ratio of Expenses **		3.80	%		3.75	%		3.70	%

Period ended December 31, 2007

Unit Value	$	20.974344		$	9.800591		$	19.709046
Total Return *		3.46	%		0.86	%		3.91	%
Ratio of Expenses **		3.80	%		3.75	%		3.70	%

Page 81

Jackson National Separate Account I

Notes to Financial Statements (continued)

Note 7 - Financial Highlights (continued)

	JNL/WMC			JNL/WMC			JNL/WMC
	Balanced			Money Market			Value
	Portfolio			Portfolio			Portfolio

Lowest expense ratio
Period ended December 31, 2011

Unit Value	$	31.176294		$	13.642602		$	20.081933
Total Return *		2.24	%		-0.99	%		-3.03	%
Ratio of Expenses **		1.00	%		1.00	%		1.00	%

Period ended December 31, 2010

Unit Value	$	30.491815		$	13.778726		$	20.709679
Total Return *		9.73	%		-1.00	%		12.57	%
Ratio of Expenses **		1.00	%		1.00	%		1.00	%

Period ended December 31, 2009

Unit Value	$	27.789280		$	13.917211		$	18.397952
Total Return *		18.50	%		-0.85	%		22.75	%
Ratio of Expenses **		1.00	%		1.00	%		1.00	%

Period ended December 31, 2008

Unit Value	$	23.451105		$	14.036344		$	14.988548
Total Return *		-21.51	%		1.17	%		-34.01	%
Ratio of Expenses **		1.00	%		1.00	%		1.00	%

Period ended December 31, 2007

Unit Value	$	29.878778		$	13.873622		$	22.712971
Total Return *		6.42	%		3.69	%		6.77	%
Ratio of Expenses **		1.00	%		1.00	%		1.00	%

Page 82

Jackson National Separate Account I

Notes to Financial Statements (continued)

Note 7 - Financial Highlights (continued)

	JNL/WMC			JNL/WMC			JNL/WMC
	Balanced			Money Market			Value
	Portfolio			Portfolio			Portfolio

Portfolio data
Period ended December 31, 2011

Net Assets (in thousands)	$	1,709,811		$	1,010,793		$	362,133
Units Outstanding (in thousands)		59,618			82,015			18,923
Investment Income Ratio *		1.18	%		0.00	%		1.03	%

Period ended December 31, 2010

Net Assets (in thousands)	$	1,228,148		$	676,914		$	353,077
Units Outstanding (in thousands)		43,834			54,428			17,861
Investment Income Ratio *		1.44	%		0.00	%		1.02	%

Period ended December 31, 2009

Net Assets (in thousands)	$	698,799		$	813,943		$	245,685
Units Outstanding (in thousands)		27,589			64,606			13,947
Investment Income Ratio *		2.87	%		0.18	%		1.78	%

Period ended December 31, 2008

Net Assets (in thousands)	$	432,806		$	1,200,692		$	153,537
Units Outstanding (in thousands)		20,425			94,661			10,667
Investment Income Ratio *		2.44	%		2.06	%		0.04	%

Period ended December 31, 2007

Net Assets (in thousands)	$	497,884		$	618,006		$	217,135
Units Outstanding (in thousands)		18,482			48,897			9,897
Investment Income Ratio *		2.57	%		4.60	%		3.53	%

Page 83

Independent Auditors’ Report

To the Board of Directors of Jackson National Life Insurance Company and

Contract Owners of Jackson National Separate Account I:

We have audited the accompanying statements of assets and liabilities of each of the sub-accounts within Jackson National Separate Account I (Separate Account) as set forth herein as of December 31, 2011, and the related statements of operations for the year or period then ended, the statements of changes in net assets for each of the years or periods in the two-year period then ended, and the financial highlights for each of the years or periods in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Separate Account’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2011, by correspondence with the transfer agent of the underlying mutual fund and other appropriate audit procedures. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of each sub-account within Jackson National Separate Account I as set forth herein as of December 31, 2011, the results of their operations for the year or period then ended, the changes in their net assets for each of the years or periods in the two-year period then ended, and the financial highlights for each of the years or periods in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

KPMG LLP

March 1, 2012

Chicago, Illinois

Jackson National Life Insurance Company and Subsidiaries

Index to Consolidated Financial Statements

December 31, 2011

Report of Independent Registered Public Accounting Firm			1

Consolidated Balance Sheets			2

Consolidated Income Statements			3

Consolidated Statements of Changes in Equity and Comprehensive Income			4

Consolidated Statements of Cash Flows			5

Notes to Consolidated Financial Statements			6


	KPMG LLP
	303 East Wacker Drive
	Chicago, IL 60601-5212

Report of Independent Registered Public Accounting Firm

To the Board of Directors and Stockholder of

Jackson National Life Insurance Company:

We have audited the accompanying consolidated balance sheets of Jackson National Life Insurance Company and Subsidiaries (the Company) as of December 31, 2011 and 2010, and the related consolidated income statements and the consolidated statements of changes in equity and comprehensive income, and cash flows for each of the years in the three-year period ended December 31, 2011. These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of Jackson National Life Insurance Company and Subsidiaries as of December 31, 2011 and 2010, and the results of their operations and their cash flows for each of the years in the three-year period ended December 31, 2011 in conformity with U.S. generally accepted accounting principles.

Chicago, Illinois

March 5, 2012

KPMG LLP is a Delaware limited liability partnership,
the U.S. member firm of KPMG International Cooperative
(KPMG International), a Swiss entity.

Jackson National Life Insurance Company and Subsidiaries

Consolidated Financial Statements

Consolidated Balance Sheets

(In thousands, except per share information)

	December 31,
Assets	2011		2010
Investments:
Securities available for sale, at fair value:
Fixed maturities (amortized cost: 2011, $38,688,488; 2010, $39,222,320, including fair value through profit and loss: 2011, $126,657; 2010, $345,038)	$	41,546,295	$	40,801,885
Trading securities, at fair value		315,607		467,101
Commercial mortgage loans, net of allowance		5,530,370		5,700,365
Policy loans		855,099		855,842
Derivative instruments		2,605,468		1,010,377
Other invested assets		1,255,455		1,038,012
Total investments		52,108,294		49,873,582
Cash and cash equivalents		656,253		674,253
Accrued investment income		576,185		553,762
Deferred acquisition costs		5,635,268		5,305,670
Reinsurance recoverable		1,409,688		1,089,539
Income taxes receivable from Parent		181,774		50,854
Other assets		875,288		618,019
Separate account assets		58,796,937		48,854,037
Total assets	$	120,239,687	$	107,019,716

Liabilities and Equity
Liabilities
Reserves for future policy benefits and claims payable	$	5,078,788	$	3,149,572
Other contract holder funds		44,944,096		44,576,723
Debt		297,695		338,805
Securities lending payable		53,285		58,115
Deferred income taxes, net		1,139,352		656,577
Derivative instruments		1,378,907		1,250,807
Other liabilities		1,652,609		1,886,751
Separate account liabilities		58,796,937		48,854,037
Total liabilities		113,341,669		100,771,387

Equity
Common stock, $1.15 par value; authorized 50,000 shares;
issued and outstanding 12,000 shares		13,800		13,800
Additional paid-in capital		3,730,901		3,711,500
Accumulated other comprehensive income, net of
tax of $318,302 in 2011 and $53,280 in 2010		1,329,190		837,006
Retained earnings		1,796,398		1,633,691
Total stockholder's equity		6,870,289		6,195,997
Noncontrolling interests		27,729		52,332
Total equity		6,898,018		6,248,329
Total liabilities and equity	$	120,239,687	$	107,019,716

See accompanying Notes to Consolidated Financial Statements.

Jackson National Life Insurance Company and Subsidiaries

Consolidated Financial Statements

Consolidated Income Statements

(In thousands)

	Years Ended December 31,
	2011			2010			2009
Revenues
Fee income	$	2,108,159		$	1,565,992		$	1,082,281
Premium		139,810			142,721			115,231
Net investment income		2,644,586			2,704,453			2,488,781
Net realized losses on investments:
Total other-than-temporary impairments		(305,805	)		(319,977	)		(1,196,893	)
Portion of other-than-temporary impairments included in
other comprehensive income (loss)		218,710			176,719			422,186
Net other-than-temporary impairments		(87,095	)		(143,258	)		(774,707	)
Other investment losses		(673,010	)		(1,021,706	)		30,276
Total net realized losses on investments		(760,105	)		(1,164,964	)		(744,431	)
Other income		52,350			61,233			61,112
Total revenues		4,184,800			3,309,435			3,002,974
Benefits and Expenses
Death, other policy benefits and change in policy reserves, net of deferrals		585,296			536,725			641,386
Interest credited on other contract holder funds, net of deferrals		1,384,908			1,445,319			1,502,945
Interest expense		42,881			34,825			49,767
Operating costs and other expenses, net of deferrals		760,969			621,773			483,924
Amortization of deferred acquisition and sales inducement costs		437,358			(11,660	)		(273,341	)
Total benefits and expenses		3,211,412			2,626,982			2,404,681
Pretax income before taxes and noncontrolling interests		973,388			682,453			598,293
Income tax expense		276,235			176,737			182,536
Net income		697,153			505,716			415,757
Less: Net income (loss) attributable to noncontrolling interests		4,446			7,288			(12,415	)
Net income attributable to Jackson	$	692,707		$	498,428		$	428,172

See accompanying Notes to Consolidated Financial Statements.

Jackson National Life Insurance Company and Subsidiaries

Consolidated Financial Statements

Consolidated Statements of Changes in Equity and Comprehensive Income

(In thousands)

					Accumulated
			Additional		other						Total			Non-
	Common		paid-in		comprehensive			Retained			stockholder's			controlling			Total
	stock		capital		income (loss)			earnings			equity			interests			equity
Balances as of December 31, 2008	$	13,800	$	2,968,985	$	(1,627,525	)	$	1,145,443		$	2,500,703		$	126,411		$	2,627,114
Comprehensive income:
Net income (loss)									428,172			428,172			(12,415	)		415,757
Net unrealized gains (losses)
on securities not other-than
-temporarily impaired, net
of tax of $382,885						1,621,868						1,621,868			(38,616	)		1,583,252
Net unrealized losses on
other-than-temporarily impaired
securities, net of tax of $(127,733)						(237,217	)					(237,217	)					(237,217	)
Reclassification adjustment
for losses included
in net income, net of tax
of $240,213						446,108						446,108						446,108
Total comprehensive income (loss)						1,830,759			428,172			2,258,931			(51,031	)		2,207,900
Cumulative effect of change in
accounting, net						(126,890	)		126,890			-						-
Capital contribution				592,410								592,410						592,410
Dividends to stockholder									(250,000	)		(250,000	)					(250,000	)
Balances as of December 31, 2009	$	13,800	$	3,561,395	$	76,344		$	1,450,505		$	5,102,044		$	75,380		$	5,177,424


Comprehensive income:
Net income									498,428			498,428			7,288			505,716
Net unrealized gains (losses)
on securities not other-than
-temporarily impaired, net
of tax of $422,473						784,594						784,594			(30,336	)		754,258
Net unrealized losses on
other-than-temporarily impaired
securities, net of tax of $(54,663)						(101,517	)					(101,517	)					(101,517	)
Reclassification adjustment
for losses included
in net income, net of tax
of $15,223						28,270						28,270						28,270
Total comprehensive income (loss)						711,347			498,428			1,209,775			(23,048	)		1,186,727
Cumulative effect of change in
accounting, net						49,315			(40,242	)		9,073						9,073
Capital contribution				150,105								150,105						150,105
Dividends to stockholder									(275,000	)		(275,000	)					(275,000	)
Balances as of December 31, 2010	$	13,800	$	3,711,500	$	837,006		$	1,633,691		$	6,195,997		$	52,332		$	6,248,329


Comprehensive income:
Net income									692,707			692,707			4,446			697,153
Net unrealized gains (losses)
on securities not other-than
-temporarily impaired, net
of tax of $360,070						668,701						668,701			(29,049	)		639,652
Net unrealized losses on
other-than-temporarily impaired
securities, net of tax of $(65,730)						(122,070	)					(122,070	)					(122,070	)
Reclassification adjustment
for losses included
in net income, net of tax
of $(29,318)						(54,447	)					(54,447	)					(54,447	)
Total comprehensive income (loss)						492,184			692,707			1,184,891			(24,603	)		1,160,288
Capital contribution				19,401								19,401						19,401
Dividends to stockholder									(530,000	)		(530,000	)					(530,000	)
Balances as of December 31, 2011	$	13,800	$	3,730,901	$	1,329,190		$	1,796,398		$	6,870,289		$	27,729		$	6,898,018

See accompanying Notes to Consolidated Financial Statements.

Jackson National Life Insurance Company and Subsidiaries

Consolidated Financial Statements

Consolidated Statements of Cash Flows

(In thousands)

	Years Ended December 31,
	2011			2010			2009
Cash flows from operating activities:
Net income	$	697,153		$	505,716		$	415,757
Adjustments to reconcile net income
to net cash provided by operating activities:
Net realized (gains) losses on investments		(113,933	)		55,495			607,878
Net losses on derivatives		809,328			1,069,971			225,566
Interest credited on other contract holder funds, gross		1,396,036			1,464,020			1,543,268
Interest expense on Federal Home Loan Bank funding
agreements		22,098			22,678			28,906
Mortality, expense and surrender charges		(343,983	)		(354,070	)		(327,521	)
Amortization of discount and premium on investments		5,428			(3,243	)		(1,235	)
Deferred income tax expense		217,754			355,790			409,848
Change in:
Accrued investment income		(22,423	)		(103,629	)		46,654
Deferred sales inducements and acquisition costs		(997,357	)		(1,336,646	)		(1,350,132	)
Trading portfolio activity, net		151,494			90,570			268,154
Income taxes receivable from Parent		(130,920	)		318,624			(200,147	)
Other assets and liabilities, net		(511,464	)		222,438			899,954
Net cash provided by operating activities		1,179,211			2,307,714			2,566,950

Cash flows from investing activities:
Sales of fixed maturities		7,345,626			8,689,802			9,001,912
Principal repayments, maturities, calls and redemptions:
Fixed maturities		1,635,472			1,934,006			2,166,500
Commercial mortgage loans		1,323,959			1,375,297			742,080
Purchases of:
Fixed maturities		(8,202,646	)		(13,190,087	)		(10,029,527	)
Commercial mortgage loans		(1,185,257	)		(1,045,450	)		(351,711	)
Other investing activities		(514,011	)		(716,905	)		(1,534,559	)
Net cash provided by (used in) investing activities		403,143			(2,953,337	)		(5,305	)

Cash flows from financing activities:
Policyholders' account balances:
Deposits		20,374,771			17,868,878			14,123,189
Withdrawals		(8,846,295	)		(7,182,166	)		(9,543,370	)
Net transfers to separate accounts		(12,256,282	)		(10,767,308	)		(6,984,733	)
(Payments) Proceeds from repurchase agreements		(451,678	)		552,458			-
Proceeds from Federal Home Loan Bank advances		150,000			-			-
Proceeds from debt		-			15,000			-
Payments on debt		(40,870	)		(65,711	)		(150,000	)
Payment of cash dividends to Parent		(530,000	)		(275,000	)		(250,000	)
Capital contribution from Parent		-			130,000			571,000
Net cash (used in) provided by financing activities		(1,600,354	)		276,151			(2,233,914	)

Net (decrease) increase in cash and cash equivalents		(18,000	)		(369,472	)		327,731

Cash and cash equivalents, beginning of year		674,253			1,043,725			715,994
Total cash and cash equivalents, end of year	$	656,253		$	674,253		$	1,043,725

See accompanying Notes to Consolidated Financial Statements.

Jackson National Life Insurance Company and Subsidiaries

Notes to Consolidated Financial Statements

December 31, 2011

1.	Nature of Operations

Jackson National Life Insurance Company (the “Company” or “Jackson”) is wholly owned by Brooke Life Insurance Company (“Brooke Life” or the “Parent”), which is ultimately a wholly owned subsidiary of Prudential plc (“Prudential”), London, England. Jackson, together with its New York life insurance subsidiary, is licensed to sell group and individual annuity products (including immediate, index linked and deferred fixed annuities and variable annuities), guaranteed investment contracts (“GICs”) and individual life insurance products, including variable universal life, in all 50 states and the District of Columbia.

The consolidated financial statements include accounts, after the elimination of intercompany accounts and transactions, of the following:

·	Life insurers: Jackson and its wholly owned subsidiaries Jackson National Life Insurance Company of New York, Squire Reassurance Company LLC (“Squire Re”) and Jackson National Life (Bermuda) LTD;

·	Wholly owned broker-dealer, investment management and investment advisor subsidiaries: Jackson National Life Distributors, LLC, Jackson National Asset Management, LLC, Curian Clearing, LLC and Curian Capital, LLC;

·	Wholly owned insurance agency: JNL Southeast Agency, LLC;

·	PGDS (US One) LLC (“PGDS”), a wholly owned subsidiary that provides information technology services to Jackson and certain affiliates;

·	Other partnerships, limited liability companies and variable interest entities (“VIEs”) in which Jackson has a controlling interest or is deemed the primary beneficiary;

·	Hermitage Management, LLC, a wholly owned subsidiary that holds and manages certain mortgage loans and real estate.

2.	Summary of Significant Accounting Policies

Basis of Presentation

The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). All significant intercompany accounts and transactions have been eliminated upon consolidation. In 2011, Jackson adopted a revised presentation of the balance sheet and income statement, with prior year amounts being reclassified to conform with the current year presentation with no impact on stockholder’s equity or net income. In conjunction with this change, the Company has reclassified its previously reported risk management activity into other investment gains (losses) and net investment income, which is further detailed in Note 5. In addition, the Company made a correction for an immaterial error in 2009 resulting in a reclassification of $687.0 million, increasing revenues and expenses, with no impact on net income, relating to the classification of certain guaranteed minimum withdrawal benefit reserves.

The preparation of the consolidated financial statements in conformity with GAAP requires the use of estimates and assumptions about future events that affect the amounts reported in the financial statements and the accompanying notes. Significant estimates or assumptions, as further discussed in the notes, include: 1) valuation of investments and derivative instruments, including fair values of securities deemed to be in an illiquid market and the determination of when an impairment is other-than-temporary; 2) assessments as to whether certain entities are variable interest entities, the existence of reconsideration events and the determination of which party, if any, should consolidate the entity; 3) assumptions impacting future gross profits, including lapse and mortality rates, expenses, investment returns and policy crediting rates, used in the calculation of amortization of deferred acquisition costs and deferred sales inducements; 4) assumptions used in calculating policy reserves and liabilities, including lapse and mortality rates, expenses and investment returns; 5) assumptions as to future earnings levels being sufficient to realize deferred tax benefits; 6) estimates related to establishment of loan loss reserves, liabilities for lawsuits and the liability for state guaranty fund assessments; 7) assumptions and estimates associated with the Company’s tax positions which impact the amount of recognized tax benefits recorded by the Company; and, 8) the value of guarantee obligations. These estimates and assumptions are based on management’s best estimates and judgments. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors deemed appropriate. As facts and circumstances dictate, these estimates and assumptions may be adjusted. Since future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates. Changes in estimates, including those resulting from continuing changes in the economic environment, will be reflected in the financial statements in the periods the estimates are changed.

Jackson National Life Insurance Company and Subsidiaries

Notes to Consolidated Financial Statements

December 31, 2011

Changes in Accounting Principles – Adopted in Current Year

In April 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2011-02, “A Creditor’s Determination of Whether a Restructuring Is a Troubled Debt Restructuring.” This guidance clarifies which loan modifications constitute troubled debt restructurings. It is intended to assist creditors in determining whether a modification of the terms of a receivable meets the criteria to be considered a troubled debt restructuring, both for purposes of recording an impairment loss and for disclosure of troubled debt restructurings. The Company adopted this guidance effective January 1, 2011 and has included the required disclosures herein.

In April 2011, the FASB issued ASU No. 2011-03, “Reconsideration of Effective Control for Repurchase Agreements,” which revises the criteria for asseessing effective control for repurchase agreements and other agreements that both entitle and obligate a transferor to repurchase or redeem financial assets before their maturity. The determination of whether the transfer of a financial asset subject to a repurchase agreement is a sale is based, in part, on whether the entity maintains effective control over the financial asset. This guidance removes from the assessment of effective control the criterion requiring the transferor to have the ability to repurchase or redeem the financial assets on substantially the agreed terms, even in the event of a default by the transferee and also the collateral maintenance implementation guidance related to that criterion. The Company adopted this guidance effective January 1, 2011 with no impact on the Company’s consolidated financial statements.

In July 2010, the FASB issued ASU No. 2010-20, “Disclosures about the Credit Quality of Financing Receivables and the Allowance for Credit Losses,” which requires significant new disclosures about the allowance for credit losses and the credit quality of financing receivables. The Company adopted the disclosure requirements effective January 1, 2011 and has included the required disclosures herein.

In April 2010, the FASB issued ASU No. 2010-15, “How Investments Held through Separate Accounts Affect an Insurer’s Consolidation Analysis of Those Investments.” This guidance clarifies that an insurance entity should not consider any separate account interests held for the benefit of policyholders in an investment to be the insurer’s interests and should not combine those interests with its general account interest in the same investment when assessing the investment for consolidation, unless the separate account interests are held for the benefit of a related policyholder, as defined in the Variable Interest Entities Subsections of Subtopic 810-10 and those Subsections require the consideration of related parties. This accounting guidance was effective on January 1, 2011 and had no impact on the Company’s consolidated financial statements.

In January 2010, the FASB issued ASU No. 2010-06, “Improving Disclosures about Fair Value Measurements,” which requires additional disclosures related to transfers between Levels 1 and 2 and for fair value measurement activity in Level 3. Additional information to be provided includes purchases, sales, issuances, and settlements on a gross basis. This ASU also clarifies certain other existing disclosure requirements including the level of disaggregation and disclosures around inputs and valuation techniques. The accounting guidance for new disclosures and clarification of existing disclosures was effective for periods beginning after December 15, 2009 and were included in the Company’s consolidated financial statements for the year ending December 31, 2010. The additional disclosures related to activity in Level 3 are effective for fiscal years beginning after December 15, 2010, and are included herein.

Changes in Accounting Principles – Adopted in Prior Years

On January 1, 2010, the Company adopted ASU No. 2009-16, “Accounting for Transfers of Financial Assets.” This accounting guidance amends the current guidance on transfers of financial assets by eliminating the qualifying special-purpose entity (“QSPE”) concept, providing certain conditions that must be met to qualify for sale accounting, changing the amount of gain or loss recognized on certain transfers and requiring additional disclosures.

Jackson National Life Insurance Company and Subsidiaries

Notes to Consolidated Financial Statements

December 31, 2011

On January 1, 2010, the Company adopted ASU No. 2010-10, “Amendment for Certain Investment Funds,” which provides accounting guidance for determining which enterprise, if any, has a controlling financial interest in a variable interest entity (“VIE”) and requires additional disclosures regarding a company’s involvement in VIEs. The adoption of ASU 2010-10 and ASU 2009-16 occurred simultaneously, requiring the consolidation of entities formerly considered to be QSPEs and decreasing retained earnings by $40.2 million. Additional details on the application of this change in accounting principles are included in Note 4.

Changes in Accounting Principles – Not Yet Adopted

In December 2011, the FASB issued ASU No. 2011-11, “Balance Sheet: Disclosures about Offsetting Assets and Liabilities,” which requires an entity to disclose information about offsetting and related arrangements. This guidance is effective for fiscal years beginning after January 1, 2013. The new disclosures are required to be applied retrospectively for all comparative periods presented. The Company will adopt this guidance effective January 1, 2013 and include all applicable disclosures.

In June 2011, the FASB issued ASU No. 2011-05, “Presentation of Comprehensive Income,” with an objective of increasing the prominence of items reported in other comprehensive income (“OCI”). This guidance provides entities with the option to present the total of comprehensive income, the components of net income, and the components of OCI either in a single continuous statement of comprehensive income or in two separate but consecutive statements. This guidance is applicable retrospectively and is effective for fiscal years beginning after December 15, 2011. Early adoption is permitted. The Company will adopt this guidance effective January 1, 2012 and is currently evaluating options for the presentation of comprehensive income upon adoption.

In May 2011, the FASB issued ASU No. 2011-04, “Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and International Financial Reporting Standards,” which was issued to create a consistent framework for the application of fair value measurement across jurisdictions. The amendments include wording changes to GAAP in order to clarify the FASB’s intent about the application of existing fair value measurements and disclosure requirements, as well as to change a particular principle or existing requirement for measuring fair value or disclosing information about fair value measurements. This new guidance is not expected to change which assets and liabilities are to be carried at fair value. This guidance is applicable prospectively and is effective for fiscal years beginning after December 15, 2011. Early adoption is prohibited. The Company will adopt this guidance effective January 1, 2012 and has not yet determined the impact it will have on the Company’s consolidated financial statements upon adoption.

In October 2010, the FASB issued ASU No. 2010-26, “Accounting for Costs Associated with Acquiring or Renewing Insurance Contracts.” This guidance clarifies which costs related to the acquisition or renewal of insurance contracts can be deferred by insurance entities. The guidance also specifies that only costs directly related to the successful acquisition of new or renewal contracts can be capitalized. All other acquisition related costs should be expensed as incurred.

Jackson will adopt this accounting guidance effective January 1, 2012 on a retrospective basis with restatement of all years presented and a cumulative effect adjustment to opening equity balance at January 1, 2010. Jackson estimates the restatement will reduce deferred acquisition costs by approximately $991.9 million and reduce stockholder’s equity by approximately $641.6 million, net of tax, at January 1, 2010.

The impact on the income statement is as follows (in millions):

	Years ended December 31,
	2011			2010
Net income as reported	$	693		$	498
Reduced deferrals		(248	)		(243	)
Change in amortization		61			(31	)
Tax benefit		65			96
Net income as adjusted	$	571		$	320

Jackson National Life Insurance Company and Subsidiaries

Notes to Consolidated Financial Statements

December 31, 2011

Comprehensive Income (Loss)

Comprehensive income (loss) includes all changes in stockholder’s equity (except those arising from transactions with owners/stockholders) and, in the Company’s case, includes net income (loss) and net unrealized gains or losses on available for sale securities.

Investments

Fixed maturities consist primarily of bonds, notes, redeemable preferred stocks and asset-backed securities. Acquisition discounts and premiums on fixed maturities are amortized into investment income through call or maturity dates using the effective interest method. Discounts and premiums on asset-backed securities are amortized over the estimated redemption period. Certain asset-backed securities are considered to be other than high quality or otherwise deemed to be high-risk, meaning the Company might not recover substantially all of its recorded investment due to unanticipated prepayment events. For these securities, changes in investment yields due to changes in estimated future cash flows are accounted for on a prospective basis. The carrying value of such securities was $840.7 million and $878.5 million as of December 31, 2011 and 2010, respectively.

Fixed maturities are generally classified as available for sale and are carried at fair value. For declines in fair value considered to be other-than-temporary, an impairment charge reflecting the difference between the amortized cost basis and fair value is included in net realized losses on investments. If management believes the Company does not intend to sell the security and will not more likely than not be required to sell the security prior to recovery of its amortized cost basis, an amount representing the non-credit related portion of a loss is reclassified out of net realized losses on investments and into other comprehensive income. In determining whether an other-than-temporary impairment has occurred, and in calculating the non-credit related component of the total impairment loss, the Company considers a number of factors, which are further detailed in Note 4.

During 2009, the Company transferred the remainder of its equity holdings from available for sale to a trading portfolio and recognized a loss of $87.5 million. At December 31, 2011 and 2010, all equity holdings were classified as trading. Trading securities are carried at fair value with changes in value included in net investment income.

Commercial mortgage loans are carried at aggregate unpaid principal balances, net of unamortized discounts and premiums, and impairments including any allowance for loan losses.

On a periodic basis, Jackson assesses the commercial mortgage loan portfolio for the need for an allowance for loan losses. In determining its allowance for losses, the Company evaluates each loan to determine if it is probable that amounts due according to the contractual terms of the loan agreement will not be collected. The allowance includes loan specific reserves for loans that are determined to be non-performing as a result of its loan review process, and a portfolio reserve for probable incurred but not specifically identified losses for loans which do not carry loan specific reserves. The loan specific portion of the loss allowance is based on the Company’s assessment as to ultimate collectability of loan principal and interest. This review contemplates a variety of factors which may include, but are not limited to, current economic conditions, the physical condition of the property, the financial condition of the borrower, and the near and long-term prospects for change in these conditions. In determining the portfolio reserve for incurred but not specifically identified losses, Jackson considers the current credit composition of the portfolio based on the results of our loan modeling analysis, which considers property type, default statistics, historical losses and other relevant factors to determine probability of default and other default loss estimates. Model assumptions are updated each quarter and, based upon our actual loan experience, are considered together with other relevant qualitative factors in making the final portfolio reserve calculations. The valuation allowance for commercial mortgage loans can increase or decrease from period to period based on these factors. Changes in the allowance for loan losses are recorded in investment income.

Separately, Jackson also reviews individual loans in the portfolio for impairment based on an assessment of the factors identified above. Impairment charges recognized are recorded initially against the established loan loss allowance and, if necessary, any additional amounts are recorded as realized losses. As deemed necessary based on cash flow expectations and other factors, Jackson may place loans on non-accrual status. In this case, all cash received is applied against the carrying value of the loan.

Policy loans are carried at the unpaid principal balances.

Jackson National Life Insurance Company and Subsidiaries

Notes to Consolidated Financial Statements

December 31, 2011

Other invested assets primarily include investments in limited partnerships and real estate. Carrying values for limited partnership investments are determined by using the proportion of Jackson’s investment in each fund (NAV equivalent) as a practical expedient for fair value. Real estate is carried at the lower of depreciated cost or fair value.

The Company holds interests in VIEs that represent primary beneficial interests. These consolidated VIEs include entities structured to hold and manage investments.

Realized gains and losses on sales of investments are recognized in income at the date of sale and are determined using the specific cost identification method.

The changes in unrealized gains and losses on certain investments which are classified as available for sale, net of tax and the effect of the adjustment for deferred acquisition costs and deferred sales inducements, and the non-credit related portion of other-than-temporary impairment charges are excluded from net income and included as a component of other comprehensive income and total equity. The changes in unrealized gains and losses on investments for which Jackson elected the fair value option are included in net income along with the related adjustment for deferred acquisition costs, deferred sales inducements and income taxes.

Derivative Instruments and Embedded Derivatives

The Company enters into financial derivative transactions, including, but not limited to, swaps, put-swaptions, futures and options to reduce and manage business risks. These transactions manage the risk of a change in the value, yield, price, cash flows, credit quality or degree of exposure with respect to assets, liabilities or future cash flows which the Company has acquired or incurred. The Company manages the potential credit exposure for over-the-counter derivative contracts through careful evaluation of the counterparty credit standing, collateral agreements, and master netting agreements. The Company is exposed to credit-related losses in the event of nonperformance by counterparties, however, it does not anticipate nonperformance. There were no charges due to nonperformance by derivative counterparties in 2011, 2010 or 2009.

The Company generally uses freestanding derivative instruments for hedging purposes. Additionally, certain liabilities, primarily trust instruments supported by funding agreements, index linked annuities and guarantees offered in connection with variable annuities issued by the Company, contain embedded derivative instruments. Further details regarding Jackson’s derivative positions are included in Note 5. The Company generally does not account for freestanding derivatives as either fair value or cash flow hedges as might be permitted if specific hedging documentation requirements were followed. Financial derivatives, including derivatives embedded in certain host liabilities that have been separated for accounting and financial reporting purposes, are carried at fair value. The results from derivative financial instruments and embedded derivatives, including net payments, realized gains and losses and changes in value, are reported in net income.

Cash and Cash Equivalents

Cash and cash equivalents, which primarily include high quality, non-asset-backed commercial paper, money market instruments and deposits in the Federal Home Loan Bank of Indianapolis (“FHLBI”), are carried at cost or amortized cost. These investments have original maturities of three months or less and are considered cash equivalents for reporting cash flows.

Deferred Acquisition Costs

Certain costs of acquiring new business, principally commissions and certain costs associated with policy issuance and underwriting, which vary with and are primarily related to the production of new business, are capitalized as deferred acquisition costs. Deferred acquisition costs are increased by interest thereon and amortized into income in proportion to anticipated premium revenues for traditional life policies and in proportion to estimated gross profits, including realized capital gains and losses and derivative movements, for annuities and interest-sensitive life products. Due to volatility of certain factors, including realized capital gains and losses and derivative movements, amortization may be a benefit or a charge in any given period. In the event of negative amortization, the related deferred acquisition cost balance is capped at the initial amount capitalized, plus interest. Unamortized deferred acquisition costs are written off when a contract is internally replaced and substantially changed. A review of assumptions used for estimating future gross profits underlying the amortization of deferred acquisition costs is conducted on an annual basis. Based on results of the annual review, the deferred acquisition cost balance is adjusted, with an offsetting credit or charge to amortization expense.

Jackson National Life Insurance Company and Subsidiaries

Notes to Consolidated Financial Statements

December 31, 2011

As certain fixed maturities available for sale are carried at fair value, an adjustment is made to deferred acquisition costs equal to the change in amortization that would have occurred if such securities had been sold at their stated fair value and the proceeds reinvested at current yields. This adjustment, along with the change in fair value of fixed maturities available for sale, net of applicable tax, is credited or charged directly to stockholder’s equity as a component of other comprehensive income. Deferred acquisition costs have been decreased by $1,062.7 million and $598.5 million at December 31, 2011 and 2010, respectively, to reflect this adjustment.

For variable annuity business, the Company employs a mean reversion methodology that is applied with the objective of adjusting the amortization of deferred acquisition costs that would otherwise be highly volatile due to fluctuations in the level of future gross profits arising from changes in equity market levels. The mean reversion methodology achieves this objective by applying a dynamic adjustment to the level of expectations of short-term future investment returns. Under the methodology, the projected returns for the next five years are set such that, when combined with the actual returns for the current and preceding two years, the average rate of return over the eight year period is 8.4%, after investment management fees. The mean reversion methodology does, however, include a cap and a floor of 15% and 0% per annum, respectively, on the projected return for each of the next five years. Projected returns after the next five years are set at 8.4%. At December 31, 2010, future projected returns were capped at the 15% level. By December 31, 2011, projected returns under mean reversion had fallen and were below the 15% cap.

Deferred acquisition costs are reviewed periodically to ensure that the unamortized portion does not exceed the expected recoverable amounts. Any amount deemed unrecoverable would be written off with a charge through deferred acquisition costs amortization. No such write-offs were required for 2011, 2010 and 2009.

Deferred Sales Inducements

Bonus interest on deferred fixed annuities and contract enhancements on index linked annuities and variable annuities are capitalized as deferred sales inducements and included in other assets. Deferred sales inducements are increased by interest thereon and amortized into income in proportion to estimated gross profits, including realized capital gains and losses and derivative movements. Due to volatility of certain factors, including realized capital gains and losses and derivative movements, amortization may be a benefit or a charge in any given period. In the event of negative amortization, the related deferred sales inducements balance is capped at the initial amount capitalized, plus interest. Unamortized deferred sales inducements are written off when a contract is internally replaced and substantially changed. A review of assumptions used for estimating future gross profits underlying the amortization of deferred sales inducements is conducted on an annual basis. Based on results of the annual review, the deferred sales inducement balance is adjusted, with an offsetting credit or charge to amortization expense.

As certain fixed maturities available for sale are carried at fair value, an adjustment is made to deferred sales inducements equal to the change in amortization that would have occurred if such securities had been sold at their stated fair value and the proceeds reinvested at current yields. This adjustment, along with the change in fair value of fixed maturities available for sale, net of applicable tax, is credited or charged directly to stockholder’s equity as a component of other comprehensive income. Deferred sales inducements have been decreased by $147.6 million and $82.2 million at December 31, 2011 and 2010, respectively, to reflect this adjustment.

For variable annuity business, the Company employs the same mean reversion methodology as is employed for deferred acquisition costs as described above.

Deferred sales inducements are reviewed periodically to ensure that the unamortized portion does not exceed the expected recoverable amounts. Any amount deemed unrecoverable would be written off with a charge through deferred sales inducements amortization. No such write-offs were required for 2011, 2010 and 2009.

Jackson National Life Insurance Company and Subsidiaries

Notes to Consolidated Financial Statements

December 31, 2011

Actuarial Assumption Changes (Unlocking)

Annually, or as circumstances warrant, the Company conducts a comprehensive review of the assumptions used for its estimates of future gross profits underlying the amortization of deferred acquisition costs and deferred sales inducements, as well as the valuation of the embedded derivatives and reserves for life insurance and annuity products with living benefit and death benefit guarantees. These assumptions include investment margins, mortality, persistency, rider utilization and policy maintenance expenses. Based on this review, the cumulative balances of deferred acquisition costs, deferred sales inducements and life and annuity reserves are adjusted with an offsetting benefit or charge to net income.

Reinsurance

The Company enters into assumed and ceded reinsurance agreements with other companies in the normal course of business. Reinsurance agreements are reported on a gross basis on the Company’s consolidated balance sheets as an asset for amounts recoverable from reinsurers or as a component of other assets or liabilities for amounts, such as premiums, owed to or from reinsurers. Reinsurance assumed and ceded premiums and benefits paid or provided are accounted for on bases consistent with those used in accounting for the original policies issued and the terms of the reinsurance contracts. Premiums and benefits are reported net of insurance assumed and ceded.

Income Taxes

The Company files income tax returns with the U.S. federal government and various state and local jurisdictions, as well as certain foreign jurisdictions. The Company is generally no longer subject to U.S. federal, state and local income tax examinations by tax authorities for years prior to 2007.

Jackson files a consolidated federal income tax return with Brooke Life and Jackson National Life Insurance Company of New York. Jackson National Life (Bermuda) LTD is taxed as a controlled foreign corporation of Jackson. All other subsidiaries are limited liability companies with all of their interests owned by Jackson. Accordingly, they are not considered separate entities for income tax purposes and, therefore, are taxed as part of the operations of Jackson. Income tax expense is calculated on a separate company basis.

Deferred federal income taxes arise from the recognition of temporary differences between the basis of assets and liabilities determined for financial reporting purposes and the basis determined for income tax purposes. Such temporary differences are principally related to the effects of recording certain invested assets at fair value, the deferral of policy acquisition costs and sales inducements and the provisions for policy reserves and other insurance items. Deferred tax assets and liabilities are measured using the tax rates expected to be in effect when such benefits are realized. In accordance with GAAP, Jackson is required to test the value of deferred tax assets for realizability. Deferred tax assets are reduced by a valuation allowance if, based on the weight of available positive and negative evidence, it is more likely than not that some portion, or all, of the deferred tax assets will not be realized. In determining the need for a valuation allowance, the Company considers the carryback capacity of losses, reversal of existing temporary differences, estimated future taxable income and tax planning strategies.

The determination of the valuation allowance for Jackson’s deferred tax assets requires management to make certain judgments and assumptions regarding future operations that are based on historical experience and expectations of future performance. In order to recognize a tax benefit in the consolidated financial statements, there must be a greater than fifty percent chance of success with the relevant taxing authority with regard to that tax position. Management’s judgments are potentially subject to change given the inherent uncertainty in predicting future performance, which is impacted by such factors as policyholder behavior, competitor pricing and other specific industry and market conditions.

The Company recognizes accrued interest and penalties, if any, related to unrecognized tax benefits as a component of tax expense.

Jackson National Life Insurance Company and Subsidiaries

Notes to Consolidated Financial Statements

December 31, 2011

Reserves for Future Policy Benefits and Claims Payable

For traditional life insurance contracts, reserves for future policy benefits are determined using the net level premium method and assumptions as of the issue date or acquisition date as to mortality, interest, persistency and expenses plus provisions for adverse deviations. Mortality assumptions range from 25% to 160% of the 1975-1980 Basic Select and Ultimate tables depending on policy duration. Interest rate assumptions range from 3.5% to 6.0%. Lapse and expense assumptions are based on Company experience. See Note 7 for a description of general account reserves related to variable annuity guarantees.

Other Contract Holder Funds

For the Company’s interest-sensitive life contracts, liabilities approximate the policyholder’s account value. For deferred annuities, the fixed option on variable annuities, guaranteed investment contracts and other investment contracts, the liability is the policyholder’s account value. The liability for index linked annuities is based on two components, 1) the imputed value of the underlying guaranteed host contract, and 2) the fair value of the embedded option component of the contract. At December 31, 2011, the Company had interest sensitive life business in force with total account value of $4.5 billion, with minimum guaranteed interest rates ranging from 3.0% to 6.0%, with a 4.93% average guaranteed rate and fixed interest rate annuities of $26.2 billion of account value with minimum guaranteed rates ranging from 1.0% to 5.5% and a 2.83% average guaranteed rate.

Jackson and Jackson National Life Funding, LLC have a European Medium Term Note program, with up to $7 billion in aggregate principal amount outstanding at any one time. Jackson National Life Funding, LLC was formed as a special purpose vehicle solely for the purpose of issuing Medium Term Note instruments to institutional investors, the proceeds of which are deposited with Jackson and secured by the issuance of funding agreements. Carrying values totaled $0.7 billion and $1.0 billion at December 31, 2011 and 2010, respectively.

Jackson and Jackson National Life Global Funding have a $10.8 billion aggregate Global Medium Term Note program. Jackson National Life Global Funding was formed as a statutory business trust, solely for the purpose of issuing Medium Term Note instruments to institutional investors, the proceeds of which are deposited with Jackson and secured by the issuance of funding agreements. The carrying values at December 31, 2011 and 2010 totaled $1.0 billion and $1.2 billion, respectively.

Those Medium Term Note instruments issued in a foreign currency have been economically hedged for changes in exchange rates using cross-currency swaps. The fair value of derivatives embedded in funding agreements, as well as unrealized foreign currency transaction gains and losses, are included in the carrying value of the trust instruments supported by funding agreements.

Trust instrument liabilities are adjusted to reflect the effects of foreign currency transaction gains and losses using exchange rates as of the reporting date. Foreign currency transaction gains and losses are included in other investment gains (losses).

Jackson and Squire Re are members of the Federal Home Loan Bank of Indianapolis (“FHLBI”) primarily for the purpose of participating in its mortgage-collateralized loan advance program with short-term and long-term funding facilities. Membership requires the Company to purchase and hold a minimum amount of FHLBI capital stock plus additional stock based on outstanding advances. Advances are in the form of short-term or long-term notes or funding agreements issued to FHLBI. At December 31, 2011 and 2010, the Company held $107.0 million and $112.1 million, respectively, of FHLBI capital stock, supporting $1.8 billion each period end in funding agreements, short-term and long-term borrowing capacity.

Jackson National Life Insurance Company and Subsidiaries

Notes to Consolidated Financial Statements

December 31, 2011

Contingent Liabilities

The Company is a party to legal actions and, at times, regulatory investigations. Given the inherent unpredictability of these matters, it is difficult to estimate their impact on the Company’s financial position. Amounts related to contingent liabilities are established if it is probable that a loss has been incurred and the amount is reasonably estimable. It is possible that an adverse outcome in certain of the Company’s contingent liabilities, or the use of different assumptions in the determination of amounts recorded, could have a material effect upon the Company’s financial position. However, it is the opinion of management that the ultimate disposition of contingent liabilities will not have a material adverse affect on the Company's financial condition or results of operations.

Separate Account Assets and Liabilities

The Company maintains separate account assets, which are reported at fair value. The related liabilities are reported at an amount equivalent to the separate account assets. At December 31, 2011 and 2010, the separate account assets and liabilities associated with variable life and annuity contracts, aggregated $58.8 billion and $48.9 billion, respectively. Investment risks associated with market value changes are borne by the contract holders, except to the extent of minimum guarantees made by the Company. Refer to Note 7 for additional information regarding the Company’s contractual guarantees. Separate account net investment income, net investment realized and unrealized gains and losses, and the related liability changes are offset within the same line item in the consolidated income statements. Amounts assessed against the contract holders for mortality, administrative, and other services are reported in revenue.

Additionally, the Company has issued a group variable annuity contract designed for use in connection with and issued to the Company’s Defined Contribution Retirement Plan. These deposits are allocated to the Jackson National Separate Account - II and aggregated $185.7 million and $176.6 million at December 31, 2011 and 2010, respectively. The Company receives administrative fees for managing the funds. These fees are recorded as earned and included in fee income in the consolidated income statements.

Debt

Liabilities for the Company’s debt are primarily carried at an amount equal to the unpaid principal balance. Original issuance discount or premium and any debt issue costs, if applicable, are recognized as a component of interest expense over the period the debt is expected to be outstanding. Refer to Note 8 for further information regarding the Company’s debt.

Revenue and Expense Recognition

Premiums for traditional life insurance are reported as revenues when due. Benefits, claims and expenses are associated with earned revenues in order to recognize profit over the lives of the contracts. This association is accomplished through provisions for future policy benefits and the deferral and amortization of acquisition costs.

Deposits on interest-sensitive life products and investment contracts, principally deferred annuities and guaranteed investment contracts, are treated as policyholder deposits and excluded from revenue. Revenues consist primarily of investment income and charges assessed against the policyholder’s account value for mortality charges, surrenders, variable annuity benefit guarantees and administrative expenses. Fee income also includes revenues related to asset management fees and 12b-1 service fees. Surrender benefits are treated as repayments of the policyholder account. Annuity benefit payments are treated as reductions to the policyholder account. Death benefits in excess of the policyholder account are recognized as an expense when incurred. Expenses consist primarily of the interest credited to policyholder deposits. Underwriting and other acquisition expenses are associated with gross profit in order to recognize profit over the life of the business. This is accomplished through deferral and amortization of acquisition costs and sales inducements. Expenses not related to policy acquisition are recognized when incurred.

Investment income is not accrued on securities in default and otherwise where the collection is uncertain. Receipts of interest on such securities are generally used to reduce the cost basis of the securities.

Jackson has terminated, at the customers’ requests, a number of Medium Term Note contracts at discounted rates. The income on these early terminations, totaling $2.5 million and $16.8 million in 2010 and 2009, respectively, was included in other income. There were no early terminations in 2011.

Jackson National Life Insurance Company and Subsidiaries

Notes to Consolidated Financial Statements

December 31, 2011

Subsequent Events

The Company has evaluated events through March 5, 2012, which is the date the financial statements were available to be issued.

3. Fair Value Measurements

The following table summarizes the fair value and carrying value of Jackson’s financial instruments (in thousands).

	December 31, 2011				December 31, 2010
	Carrying Value		Fair Value		Carrying Value		Fair Value
Assets
Cash and cash equivalents	$	656,253	$	656,253	$	674,253	$	674,253
Fixed maturities		41,546,295		41,546,295		40,801,885		40,801,885
Trading securities		315,607		315,607		467,101		467,101
Commercial mortgage loans		5,530,370		5,937,422		5,700,365		5,953,073
Policy loans		855,099		678,141		855,842		684,503
Limited partnerships		1,086,546		1,086,546		865,761		865,761
Other loans		-		-		19,410		19,313
Derivative instruments		2,605,468		2,605,468		1,010,377		1,010,377
GMIB reinsurance recoverable		451,274		451,274		127,534		127,534
Separate account assets		58,796,937		58,796,937		48,854,037		48,854,037

Liabilities
Other contract holder funds
Annuity reserves (1)	$	36,484,825	$	27,711,994	$	33,829,330	$	25,847,154
Reserves for guaranteed investment contracts		761,638		771,597		700,090		735,869
Trust instruments supported by funding agreements		1,663,204		1,709,966		2,209,268		2,266,664
Federal Home Loan Bank funding agreements		1,751,020		1,752,556		1,750,989		1,637,555
Debt		297,695		323,341		338,805		358,407
Derivative instruments		1,378,907		1,378,907		1,250,807		1,250,807
Separate account liabilities		58,796,937		58,796,937		48,854,037		48,854,037

(1) - Annuity reserves represent only the components of deposits on investment contracts that are considered to be financial instruments.

Fair value measurements are based upon observable and unobservable inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s view of market assumptions in the absence of observable market information. Jackson utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. All assets and liabilities measured at fair value are required to be classified into one of the following categories:

Level 1

Observable inputs that reflect quoted prices for identical assets or liabilities in active markets that the Company has the ability to access at the measurement date. Level 1 securities include U.S. Treasury securities and exchange traded equity and derivative instruments.

Level 2

Observable inputs, other than quoted prices included in Level 1, for the asset or liability or prices for similar assets and liabilities. Most fixed maturity securities that are model priced using observable inputs are classified within Level 2. Also included are freestanding and embedded derivative instruments that are priced using models with observable market inputs.

Level 3

Valuations that are derived from techniques in which one or more of the significant inputs are unobservable (including assumptions about risk). Limited partnership interests and those embedded derivative instruments that are valued using unobservable inputs are included in Level 3. Because Level 3 fair values, by their nature, contain unobservable market inputs, considerable judgment may be used to determine the Level 3 fair values. Level 3 fair values represent the Company’s best estimate of an amount that could be realized in a current market exchange absent actual market exchanges.

Jackson National Life Insurance Company and Subsidiaries

Notes to Consolidated Financial Statements

December 31, 2011

In many situations, inputs used to measure the fair value of an asset or liability may fall into different levels of the fair value hierarchy. In these situations, the Company will determine the level in which the fair value falls based upon the lowest level input that is significant to the determination of the fair value. As a result, both observable and unobservable inputs may be used in the determination of fair values that the Company has classified within Level 3.

The Company determines the fair values of certain financial assets and liabilities based on quoted market prices, where available. The Company may also determine fair value based on estimated future cash flows discounted at the appropriate current market rate. When appropriate, fair values reflect adjustments for counterparty credit quality, the Company’s credit standing, liquidity and risk margins on unobservable inputs.

Where quoted market prices are not available, fair value estimates are made at a point in time, based on relevant market data, as well as the best information about the individual financial instrument. At times, illiquid market conditions may result in inactive markets for certain of the Company’s financial instruments. In such instances, there is generally no or limited observable market data for these assets and liabilities. Fair value estimates for financial instruments deemed to be in an illiquid market are based on judgments regarding current economic conditions, liquidity discounts, currency, credit and interest rate risks, loss experience and other factors. These fair values are estimates and involve considerable uncertainty and variability as a result of the inputs selected and may differ materially from the values that would have been used had an active market existed. As a result of market inactivity, such calculated fair value estimates may not be realizable in an immediate sale or settlement of the instrument. In addition, changes in the underlying assumptions used in the fair value measurement technique could significantly affect these fair value estimates.

The following is a discussion of the methodologies used to determine fair values of the financial instruments listed in the above table.

Fixed Maturity and Trading Securities

The fair values for fixed maturity and trading securities are determined by management using information available from independent pricing services, broker-dealer quotes, or internally derived estimates. Priority is given to publicly available prices from independent sources, when available. Securities for which the independent pricing service does not provide a quotation are either submitted to independent broker-dealers for prices or priced internally. Typical inputs used by these three pricing methods include, but are not limited to, reported trades, benchmark yields, credit spreads, liquidity premiums, and/or estimated cash flows based on default and prepayment assumptions.

As a result of typical trading volumes and the lack of specific quoted market prices for most fixed maturities, independent pricing services will normally derive the security prices through recently reported trades for identical or similar securities, making adjustments through the reporting date based upon available market observable information as outlined above. If there are no recently reported trades, the independent pricing services and brokers may use matrix or pricing model processes to develop a security price where future cash flow expectations are developed based upon collateral performance and discounted at relevant market rates. Certain securities are priced using broker-dealer quotes, which may utilize proprietary inputs and models. Additionally, the majority of these quotes are non-binding.

Included in the pricing of asset-backed securities are estimates of the rate of future prepayments of principal over the remaining life of the securities. Such estimates are derived based on the characteristics of the underlying structure and prepayment assumptions believed to be relevant for the underlying collateral. Actual prepayment experience may vary from these estimates.

Internally derived estimates may be used to develop a fair value for securities for which the Company is unable to obtain either a reliable price from an independent pricing service or a suitable broker-dealer quote. These estimates may incorporate Level 2 and Level 3 inputs and are generally derived using expected future cash flows, discounted at market interest rates available from market sources based on the credit quality and duration of the instrument to determine fair value. For securities that may not be reliably priced using these internally developed pricing models, a fair value may be estimated using indicative market prices. These prices are indicative of an exit price, but the assumptions used to establish the fair value may not be observable or corroborated by market observable information and, therefore, are considered to be Level 3 inputs.

Jackson National Life Insurance Company and Subsidiaries

Notes to Consolidated Financial Statements

December 31, 2011

The Company performs a monthly analysis on the prices and credit spreads received from third parties to ensure that the prices represent a reasonable estimate of the fair value. This process involves quantitative and qualitative analysis and is overseen by investment and accounting professionals. Examples of procedures performed include, but are not limited to, initial and on-going review of third party pricing service methodologies, review of pricing statistics and trends, back testing recent trades and monitoring of trading volumes. In addition, the Company considers whether prices received from independent brokers represent a reasonable estimate of fair value through the use of internal and external cash flow models, which are developed based on spreads and, when available, market indices. As a result of this analysis, if the Company determines there is a more appropriate fair value based upon the available market data, the price received from the third party may be adjusted accordingly.

For those securities that were internally valued at December 31, 2011 and 2010, an internally developed model was used to determine the fair value. The pricing model used by the Company utilizes current spread levels of similarly rated securities to determine the market discount rate for the security. Furthermore, appropriate risk premiums for illiquidity and non-performance are incorporated in the discount rate. Cash flows, as estimated by the Company using issuer-specific default statistics and prepayment assumptions, are discounted to determine an estimated fair value.

On an ongoing basis, the Company reviews the independent pricing services’ valuation methodologies and related inputs, and evaluates the various types of securities in its investment portfolio to determine an appropriate fair value hierarchy distribution based upon trading activity and the observability of market inputs. Based on the results of this evaluation, each price is classified into Level 1, 2, or 3. Most prices provided by independent pricing services, including broker quotes, are classified into Level 2 due to their use of market observable inputs.

Commercial Mortgage Loans

Fair values are determined by discounting the future cash flows at current market interest rates.

Policy Loans

Fair values are determined using projected future cash flows, based on assumptions as to expected mortality and lapse rates, and discounted at the rate that would be required to transfer the asset to a willing third party.

Freestanding Derivative Instruments

Freestanding derivative instruments are reported at fair value, which reflects the estimated amounts, net of payment accruals, which the Company would receive or pay upon sale or termination of the contracts at the reporting date. Changes in fair value are included in other investment gains (losses). Freestanding derivatives priced using third party pricing services incorporate inputs that are predominantly observable in the market. Inputs used to value derivatives include, but are not limited to, interest rate swap curves, credit spreads, interest rates, counterparty credit risk, equity volatility and equity index levels.

Freestanding derivative instruments classified as Level 1 include futures, which are traded on active exchanges.

Freestanding derivative instruments classified as Level 2 include interest rate swaps, cross currency swaps, credit default swaps, put swaptions and equity index call and put options. These derivative valuations are determined by third party pricing services using pricing models with inputs that are observable in the market or can be derived principally from, or corroborated by, observable market data.

Limited Partnerships

Fair value for limited partnership interests, which are included in other invested assets, is determined using the proportion of Jackson’s investment in each fund (NAV equivalent) as a practical expedient for fair value. No adjustments to these amounts were deemed necessary at December 31, 2011 or 2010.

Jackson National Life Insurance Company and Subsidiaries

Notes to Consolidated Financial Statements

December 31, 2011

The Company’s limited partnership investments are not redeemable and distributions received are the result of liquidation of the underlying assets of the partnerships. The term of Jackson’s interest in the partnerships is generally ten years, but may be extended for a period of time under provisions within the partnership agreements, if applicable. The Company generally has the ability under the partnership agreements to sell its interest to another limited partner with the prior written consent of the general partner. It is not probable and there is no instance, to date, where Jackson contemplated selling a limited partnership interest for an amount different from its NAV equivalent.

Other Loans

Fair values are determined by discounting the future cash flows at current market interest rates.

Separate Account Assets and Liabilities

Separate account assets are invested in mutual funds, which are categorized as Level 1 assets. The value of separate account liabilities are set equal to the value of separate account assets under GAAP.

Annuity Reserves

Fair values for immediate annuities without mortality features are derived by discounting the future estimated cash flows using current market interest rates for similar maturities. Fair values for deferred annuities, including index-linked annuities, are determined using projected future cash flows discounted at the rate that would be required to transfer the liability to a willing third party.

Other Contract Holder Funds

Fair values for guaranteed investment contracts are based on the present value of future cash flows discounted at current market interest rates.

Fair values for trust instruments supported by funding agreements are based on the present value of future cash flows discounted at current market interest rates, plus the fair value of any embedded derivatives that are not required to be reported separately.

Fair values of the FHLBI funding agreements are based on present value of future cash flows discounted at current market interest rates.

Debt

Carrying value of the short-term debt is considered a reasonable estimate for fair value due to their short-term maturity. Fair values of other fixed interest rate debt are based on broker quotes or future cash flows discounted at current market interest rates.

Certain Guaranteed Benefits

Variable annuity contracts issued by the Company offer various guaranteed minimum death, withdrawal, income and accumulation benefits. Certain benefits, primarily non-life contingent guaranteed minimum withdrawal benefits (“GMWB”), guaranteed minimum accumulation benefits (“GMAB”) and the reinsured portion of the Company’s guaranteed minimum income benefits (“GMIB”), are recorded at fair value. Guaranteed benefits that are not subject to fair value accounting are accounted for as insurance benefits.

Non-life contingent GMWBs and GMABs are recorded at fair value with changes in fair value recorded in other investment gains (losses). The fair value of the reserve is based on the expectations of future benefit payments and future fees associated with the benefits. At the inception of the contract, the Company attributes to the derivative a portion of total fees collected from the contract holder, which is then held static in future valuations. Those fees, generally referred to as the attributed fees, are set such that the present value of the attributed fees is equal to the present value of future claims expected to be paid under the guaranteed benefit at the inception of the contract. In subsequent valuations, both the present value of future benefits and the present value of attributed fees are revalued based on current market conditions and policyholder behavior assumptions. The difference between each of the two components represents the fair value of the embedded derivative. Jackson discontinued offering the GMAB in 2011.

Jackson National Life Insurance Company and Subsidiaries

Notes to Consolidated Financial Statements

December 31, 2011

Jackson’s GMIB book is reinsured through an unrelated party and, due to the net settlement provisions of the reinsurance agreement, this contract meets the definition of a freestanding derivative. Accordingly, the GMIB reinsurance agreement is recorded at fair value, with changes in fair value recorded in other investment gains (losses). Due to the inability to economically reinsure or hedge new issues of the GMIB, the Company discontinued offering the benefit in 2009.

Fair values for GMWB and GMAB embedded derivatives, as well as GMIB reinsurance recoverables, are calculated using internally developed models because active, observable markets do not exist for those guaranteed benefits.

The fair value calculation is based on the present value of future cash flows comprised of future expected benefit payments, less future attributed rider fees, over the lives of the contracts. Estimating these cash flows requires numerous estimates and subjective judgments related to capital market inputs, as well as actuarially determined assumptions related to expectations concerning policyholder behavior. Capital market inputs include expected market rates of return, market volatility, correlations of market index returns to funds, fund performance and discount rates. The more significant actuarial assumptions include benefit utilization by policyholders under varying conditions, persistency, mortality, and withdrawal rates. Because of the dynamic and complex nature of these cash flows, best estimate assumptions, plus risk margins, and a stochastic process involving the generation of thousands of scenarios that assume risk neutral returns consistent with swap rates are used.

At each valuation date, the Company assumes expected returns based on LIBOR swap rates as of that date to determine the value of expected future cash flows produced in the stochastic process. Volatility assumptions are based on a weighting of available market data for implied market volatility for durations up to 10 years, at which point the projected volatility is held constant. Additionally, non-performance risk is incorporated into the calculation through the use of discount rates based on a AA corporate credit curve as an approximation of Jackson’s own credit risk. Other risk margins, particularly for policyholder behavior, are also incorporated into the model through the use of best estimate assumptions, plus a risk margin. Estimates of future policyholder behavior are subjective and are based primarily on the Company’s experience.

As markets change, mature and evolve and actual policyholder behavior emerges, management continually evaluates the appropriateness of its assumptions for this component of the fair value model.

The use of the models and assumptions described above requires a significant amount of judgment. Management believes the aggregation of each of these components results in an amount that the Company would be required to transfer for a liability, or receive for an asset, to or from a willing buyer or seller, if one existed, for those market participants to assume the risks associated with the guaranteed benefits and the related reinsurance. However, the ultimate settlement amount of the liability, which is currently unknown, could likely be significantly different than this fair value.

Jackson National Life Insurance Company and Subsidiaries

Notes to Consolidated Financial Statements

December 31, 2011

Financial Instruments Measured at Fair Value on a Recurring Basis

The following table summarizes the Company’s assets and liabilities that are carried at fair value by hierarchy levels (in thousands):

December 31, 2011	Total		Level 1		Level 2		Level 3
Assets
Fixed maturities
Government securities	$	3,361,506	$	3,360,159	$	1,347	$	-
Public utilities		2,670,236		-		2,669,713		523
Corporate securities		27,249,121		-		27,217,349		31,772
Residential mortgage-backed		3,988,907		-		3,988,907		-
Commercial mortgage-backed		3,329,434		-		3,329,434		-
Other asset-backed securities		947,091		11,249		925,782		10,060
Trading securities		315,607		255,716		-		59,891
Limited partnerships		1,086,546		-		-		1,086,546
Derivative instruments		2,605,468		-		2,603,534		1,934
GMIB reinsurance recoverable		451,274		-		-		451,274
Separate account assets (1)		58,796,937		58,796,937		-		-
Total	$	104,802,127	$	62,424,061	$	40,736,066	$	1,642,000

Liabilities
Embedded derivative liabilities (2)	$	2,949,878	$	-	$	871,827	$	2,078,051
Derivative instruments		1,378,907		114,368		1,264,539		-
Separate account liabilities		58,796,937		58,796,937		-		-
Total	$	63,125,722	$	58,911,305	$	2,136,366	$	2,078,051


December 31, 2010	Total		Level 1		Level 2		Level 3
Assets
Fixed maturities
Government securities	$	3,848,246	$	3,817,832	$	30,414	$	-
Public utilities		2,708,660		-		2,707,928		732
Corporate securities		24,816,251		-		24,784,177		32,074
Residential mortgage-backed		4,348,262		-		4,348,262		-
Commercial mortgage-backed		3,764,136		-		3,764,136		-
Other asset-backed securities		1,316,330		11,193		1,230,324		74,813
Trading securities		467,101		255,166		-		211,935
Limited partnerships		865,761		-		-		865,761
Derivative instruments		1,010,377		-		1,010,377		-
GMIB reinsurance recoverable		127,534		-		-		127,534
Separate account assets (1)		48,854,037		48,854,037		-		-
Total	$	92,126,695	$	52,938,228	$	37,875,618	$	1,312,849

Liabilities
Embedded derivative liabilities (2)	$	1,249,972	$	-	$	936,438	$	313,534
Derivative instruments		1,250,807		117,449		1,127,527		5,831
Debt		26,207		-		26,207		-
Separate account liabilities		48,854,037		48,854,037		-		-
Total	$	51,381,023	$	48,971,486	$	2,090,172	$	319,365

(1) Pursuant to ASC 944-80, the value of the separate account liabilities is set equal to the value of the separate account assets.
(2) Includes the embedded derivative liabilities related to GMWB and GMAB benefits and index-linked annuities.

Jackson National Life Insurance Company and Subsidiaries

Notes to Consolidated Financial Statements

December 31, 2011

Assets and Liabilities Measured at Fair Value Using Significant Unobservable Inputs (Level 3)

The tables below provide rollforwards for 2011 and 2010 of the financial instruments for which significant unobservable inputs (Level 3) are used in the fair value measurement. Gains and losses in the table below include changes in fair value due partly to observable and unobservable factors. The Company utilizes derivative instruments to manage the risk associated with certain assets and liabilities. However, the derivative instruments hedging the related risks may not be classified within the same fair value hierarchy level as the associated assets and liabilities. Therefore, the impact of the derivative instruments reported in Level 3 below may vary significantly from the total income effect of the hedged instruments. Additionally, the Company’s policy for determining and disclosing transfers between levels is to recognize transfers using beginning of period balances.

				Total Realized/Unrealized Gains (Losses) Included in
									Purchases,
	Fair Value								Sales,			Transfers			Fair Value
	as of						Other		Issuances			in and/or			as of
	January 1,			Net			Comprehensive		and			(out of)			December 31,
(in thousands)	2011			Income			Income		Settlements			Level 3			2011
Assets
Fixed maturities
Public utilities	$	732		$	(25	)	$	-	$	(184	)	$	-		$	523
Corporate securities		32,074			1,300			1,676		(3,278	)		-			31,772
Other asset-backed securities		74,813			(3,002	)		3,920		(73,868	)		8,197			10,060
Trading securities		211,935			15,934			-		(167,978	)		-			59,891
Limited partnerships		865,761			84,328			-		136,457			-			1,086,546
Derivative instruments		-			1,934			-		-			-			1,934
GMIB reinsurance recoverable		127,534			323,740			-		-			-			451,274

Liabilities
Embedded derivative liabilities		(313,534	)		(1,764,517	)		-		-			-			(2,078,051	)
Derivative instruments		(5,831	)		5,831			-		-			-			-

				Total Realized/Unrealized Gains (Losses) Included in
									Purchases,
	Fair Value								Sales,			Transfers			Fair Value
	as of						Other		Issuances			in and/or			as of
	January 1,			Net			Comprehensive		and			(out of)			December 31,
(in thousands)		2010		Income			Income		Settlements			Level 3				2010
Assets
Fixed maturities
Public utilities	$	13,338		$	(1,809	)	$	1,870	$	(8,165	)	$	(4,502	)	$	732
Corporate securities		472,466			803			4,611		(158,439	)		(287,367	)		32,074
Residential mortgage-backed		2,969			(4,583	)		7,038		(5,424	)		-			-
Commercial mortgage-backed		77,899			(1,579	)		16,203		(43,852	)		(48,671	)		-
Other asset-backed securities		902,956			(2,444	)		13,683		(386,693	)		(452,689	)		74,813
Trading securities		246,045			64,689			-		(98,799	)		-			211,935
Limited partnerships		704,689			67,466			-		93,606			-			865,761
Derivative instruments		281,989			(26,551	)		-		(99,003	)		(156,435	)		-
GMIB reinsurance recoverable		141,459			(13,925	)		-		-			-			127,534

Liabilities
Embedded derivative liabilities		(437,433	)		123,899			-		-			-			(313,534	)
Derivative instruments		(27,230	)		21,399			-		-			-			(5,831	)

Jackson National Life Insurance Company and Subsidiaries

Notes to Consolidated Financial Statements

December 31, 2011

The components of the amounts included in purchases, sales, issuances and setttlements at December 31, 2011 shown above are as follows (in thousands):

	Purchases		Sales			Issuances		Settlements		Total
Assets
Fixed maturities
Public utilities	$	-	$	(184	)	$	-	$	-	$	(184	)
Corporate securities		-		(3,278	)		-		-		(3,278	)
Other asset-backed securities		-		(73,868	)		-		-		(73,868	)
Trading securities		2,629		(170,607	)		-		-		(167,978	)
Limited partnerships		254,880		(118,423	)		-		-		136,457
Total	$	257,509	$	(366,360	)	$	-	$	-	$	(108,851	)

Upon adoption of ASC 820-10, certain broker priced assets were classified as Level 3 holdings as a result of illiquidity in the market and the resultant lack of observability into the assumptions used to produce those fair values. During 2010, as a result of changes in the level of observability of these inputs, Jackson determined that these assets would be more appropriately categorized in Level 2. As a result, Jackson transferred securities with an amortized cost and fair value of $1,059.5 million and $775.3 million, respectively, and derivative assets with a fair value of $156.4 million from Level 3 to Level 2 during 2010. For the year ended December 31, 2011, Jackson transferred securities with an amortized cost and fair value of $9.3 million and $8.2 million, respectively, into Level 3 from Level 2 as a result of third party pricing not being available. There were no transfers between Level 1 and 2 of the fair value hierarchy.

The portion of gains (losses) included in net income or other comprehensive income attributable to the change in unrealized gains and losses on Level 3 financial instruments still held at December 31, 2011 and 2010, was as follows (in thousands):

	2011			2010
Assets
Fixed maturities
Public utilities	$	(25	)	$	-
Corporate securities		2,962			2,635
Other asset-backed securities		(3,865	)		2,891
Trading securities		15,915			28,905
Limited partnerships		84,478			68,169
Derivative instruments		1,934			-
GMIB reinsurance recoverable		323,740			(13,925	)

Liabilities
Embedded derivative liabilities	$	(1,764,517	)	$	123,899
Derivative instruments		(5,831	)		21,399

4.	Investments

Investments are comprised primarily of fixed-income securities, primarily publicly traded industrial, utility and government bonds, asset-backed securities and commercial mortgage loans. Asset-backed securities include mortgage-backed and other structured securities. The Company generates the majority of its general account deposits from interest-sensitive individual annuity contracts, life insurance products and guaranteed investment contracts on which it has committed to pay a declared rate of interest. The Company's strategy of investing in fixed-income securities and loans aims to ensure matching of the asset yield with the amounts credited to the interest-sensitive liabilities and to earn a stable return on its investments.

Jackson National Life Insurance Company and Subsidiaries

Notes to Consolidated Financial Statements

December 31, 2011

Fixed Maturities

The following table sets forth fixed maturities at December 31, 2011, classified by rating categories as assigned by nationally recognized statistical rating organizations (“NRSRO”), the National Association of Insurance Commissioners (“NAIC”), or if not rated by such organizations, the Company’s affiliated investment advisor. At December 31, 2011, the carrying value of investments rated by the Company’s affiliated investment advisor totaled $164.4 million. For purposes of the table, if not otherwise rated higher by a NRSRO, NAIC Class 1 investments are included in the A rating; Class 2 in BBB; Class 3 in BB and Classes 4 through 6 in B and below.

	Percent of Total Fixed Maturities Carrying Value December 31, 2011
Investment Rating
AAA	22.2%
AA	5.6%
A	31.1%
BBB	35.1%
Investment grade	94.0%
BB	3.1%
B and below	2.9%
Below investment grade	6.0%
Total fixed maturities	100.0%

At December 31, 2011, based on ratings by NRSROs, of the total carrying value of fixed maturities in an unrealized loss position, 57% were investment grade, 33% were below investment grade and 10% were not rated. Unrealized losses on fixed maturities that were below investment grade or not rated represented approximately 65% of the aggregate gross unrealized losses on available for sale fixed maturities.

Corporate securities in an unrealized loss position were diversified across industries. As of December 31, 2011, the industries accounting for the larger percentage of unrealized losses included banking/finance (9.83% of fixed maturities gross unrealized losses) and telecommunications (1.42%). The largest unrealized loss related to a single corporate obligor was $26.5 million at December 31, 2011.

The amortized cost, gross unrealized gains and losses, fair value and non-credit OTTI of available for sale fixed maturities, including $126.7 million and $345.0 million in securities carried at fair value with changes in value recorded through the income statement during 2011 and 2010, respectively, were as follows (in thousands):

	Amortized Cost (1)		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Non-credit OTTI (2)
December 31, 2011
Fixed Maturities
Government securities	$	2,932,197	$	429,309	$	-	$	3,361,506	$	-
Public utilities		2,346,651		324,466		881		2,670,236		-
Corporate securities		25,129,745		2,217,024		97,648		27,249,121		6,755
Residential mortgage-backed		4,127,911		146,430		285,434		3,988,907		(177,444	)
Commercial mortgage-backed		3,064,184		324,360		59,110		3,329,434		(6,933	)
Other asset-backed securities		1,087,800		15,564		156,273		947,091		(59,520	)
Total fixed maturities	$	38,688,488	$	3,457,153	$	599,346	$	41,546,295	$	(237,142	)

(1)	Fair value for securities carried at fair value with changes in value recorded through the income statement.

(2)	Represents the amount of cumulative non-credit OTTI gains (losses) recognized in other comprehensive income on securities for which credit impairments have been recorded.

Jackson National Life Insurance Company and Subsidiaries

Notes to Consolidated Financial Statements

December 31, 2011

	Amortized Cost (1)		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Non-credit OTTI (2)
December 31, 2010
Fixed Maturities
Government securities	$	3,789,201	$	62,052	$	3,007	$	3,848,246	$	-
Public utilities		2,514,868		205,830		12,038		2,708,660		-
Corporate securities		23,362,634		1,597,001		143,384		24,816,251		12,184
Residential mortgage-backed		4,542,139		138,232		332,109		4,348,262		(158,502	)
Commercial mortgage-backed		3,549,421		277,898		63,183		3,764,136		(8,192	)
Other asset-backed securities		1,464,057		18,831		166,558		1,316,330		(17,757	)
Total fixed maturities	$	39,222,320	$	2,299,844	$	720,279	$	40,801,885	$	(172,267	)

(1)	Fair value for securities carried at fair value with changes in value recorded through the income statement.

(2)	Represents the amount of cumulative non-credit OTTI gains (losses) recognized in other comprehensive income on securities for which credit impairments have been recorded.

The amortized cost, gross unrealized gains and losses, and fair value of fixed maturities at December 31, 2011, by contractual maturity, are shown below (in thousands). Expected maturities may differ from contractual maturities where securities can be called or prepaid with or without early redemption penalties.

	Amortized (1) Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value

Due in 1 year or less	$	1,279,659	$	25,880	$	54	$	1,305,485
Due after 1 year through 5 years		6,262,323		450,621		10,644		6,702,300
Due after 5 years through 10 years		18,743,820		1,856,138		42,706		20,557,252
Due after 10 years through 20 years		2,172,590		267,399		13,845		2,426,144
Due after 20 years		1,950,201		370,761		31,280		2,289,682
Residential mortgage-backed		4,127,911		146,430		285,434		3,988,907
Commercial mortgage-backed		3,064,184		324,360		59,110		3,329,434
Other asset-backed securities		1,087,800		15,564		156,273		947,091
Total	$	38,688,488	$	3,457,153	$	599,346	$	41,546,295

(1) Fair value for securities carried at fair value with changes in value recorded through the income statement.

U.S. Treasury securities with a carrying value of $4.6 million and $4.2 million at December 31, 2011 and 2010, respectively, were on deposit with regulatory authorities, as required by law in various states in which business is conducted.

At December 31, 2011, the amortized cost and carrying value of fixed maturities in default that were anticipated to be income producing when purchased were $2.3 million and $7.0 million, respectively. The amortized cost and carrying value of fixed maturities that have been non-income producing for the 12 months preceding December 31, 2011 were $2.3 million and $7.0 million, respectively, and for the 12 months preceding December 31, 2010 were $2.9 million and $8.8 million, respectively.

Jackson National Life Insurance Company and Subsidiaries

Notes to Consolidated Financial Statements

December 31, 2011

Residential mortgage-backed securities (“RMBS”) include certain RMBS which are collateralized by residential mortgage loans and are neither explicitly nor implicitly guaranteed by U.S. government agencies (“non-agency mortgage-backed securities”). The Company’s non-agency mortgage-backed securities include investments in securities backed by prime, Alt-A, and subprime loans as follows (in thousands):

			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
December 31, 2011	Cost (1)		Gains		Losses		Value

Prime	$	865,197	$	5,522	$	79,340	$	791,379
Alt-A		560,471		2,076		85,280		477,267
Subprime		441,311		61		120,814		320,558
Total non-agency RMBS	$	1,866,979	$	7,659	$	285,434	$	1,589,204


			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
December 31, 2010	Cost (1)		Gains		Losses		Value

Prime	$	1,073,242	$	12,511	$	134,826	$	950,927
Alt-A		736,193		2,786		95,028		643,951
Subprime		475,652		1,076		99,128		377,600
Total non-agency RMBS	$	2,285,087	$	16,373	$	328,982	$	1,972,478

(1) Fair value for securities carried at fair value with changes in value recorded through the income statement.

The Company defines its exposure to non-agency residential mortgage loans as follows. Prime loan-backed securities are collateralized by mortgage loans made to the highest rated borrowers. Alt-A loan-backed securities are collateralized by mortgage loans made to borrowers who lack credit documentation or necessary requirements to obtain prime borrower rates. Subprime loan-backed securities are collateralized by mortgage loans made to borrowers that have a FICO score of 680 or lower. 22% of the Company’s investments in Alt-A related mortgage-backed securities are rated investment grade by at least one NRSRO. 20% of the Company’s investments in subprime related mortgage-backed securities are rated triple-A by at least one NRSRO. In 2011, the Company recorded other-than-temporary impairment charges of $14.1 million, $20.2 million, and $4.5 million on securities backed by prime, Alt-A and subprime loans, respectively. In 2010, the Company recorded other-than-temporary impairment charges of $23.0 million, $50.5 million, and $11.4 million on securities backed by prime, Alt-A and subprime loans, respectively. In 2009, the Company recorded other-than-temporary impairment charges of $351.1 million, $241.0 million, and $19.0 million on securities backed by prime, Alt-A and subprime loans, respectively.

Asset-backed securities also include investments in securities which are collateralized by commercial mortgage loans (“CMBS”). At December 31, 2011, the amortized cost and fair value of the Company’s investment in CMBS was $3.1 billion and $3.3 billion, respectively, of which 99% were rated investment grade by at least one NRSRO. In 2011 and 2010, the Company recorded other-than-temporary impairment charges of $1.0 million and $11.1 million, respectively, on CMBS. No other-than-temporary impairment charges were recorded on CMBS during 2009.

Corporate securities include direct investments in below investment grade syndicated bank loans. Unlike most corporate debentures, syndicated bank loans are collateralized by specific tangible assets of the borrowers. As such, investors in these securities that become impaired have historically experienced less severe losses compared to corporate bonds. At December 31, 2011, the amortized cost and fair value of the Company’s direct investments in bank loans were $64.9 million and $63.8 million, respectively.

Jackson National Life Insurance Company and Subsidiaries

Notes to Consolidated Financial Statements

December 31, 2011

The following table summarizes the number of securities, fair value and the related amount of gross unrealized losses aggregated by investment category and length of time that individual fixed maturities have been in a continuous loss position (in thousands, except number of securities):

	December 31, 2011						December 31, 2010

	Less than 12 months						Less than 12 months
	Gross						Gross
	Unrealized				# of		Unrealized				# of
	Losses		Fair Value		securities		Losses		Fair Value		securities
Government securities	$	-	$	-		-	$	3,007	$	480,177		3
Public utilities		373		23,422		2		10,655		264,765		19
Corporate securities		57,525		1,615,252		149		81,721		2,936,548		176
Residential mortgage-backed		66,509		326,993		36		4,255		112,509		23
Commercial mortgage-backed		3,162		82,921		14		4,152		203,927		18
Other asset-backed securities		56,129		180,432		42		2,923		146,656		17
Total temporarily impaired
securities	$	183,698	$	2,229,020		243	$	106,713	$	4,144,582		256

	12 months or longer						12 months or longer
	Gross						Gross
	Unrealized				# of		Unrealized				# of
	Losses		Fair Value		securities		Losses		Fair Value		securities
Public utilities	$	508	$	6,965		1	$	1,383	$	6,941		2
Corporate securities		40,123		259,037		44		61,663		491,829		61
Residential mortgage-backed		218,925		1,013,025		158		327,854		1,590,392		173
Commercial mortgage-backed		55,948		82,829		21		59,031		145,344		31
Other asset-backed securities		100,144		251,998		58		163,635		442,578		81
Total temporarily impaired
securities	$	415,648	$	1,613,854		282	$	613,566	$	2,677,084		348

	Total						Total
	Gross						Gross
	Unrealized				# of		Unrealized				# of
	Losses		Fair Value		securities		Losses		Fair Value		securities
Government securities	$	-	$	-		-	$	3,007	$	480,177		3
Public utilities		881		30,387		3		12,038		271,706		21
Corporate securities		97,648		1,874,289		193		143,384		3,428,377		237
Residential mortgage-backed		285,434		1,340,018		194		332,109		1,702,901		196
Commercial mortgage-backed		59,110		165,750		35		63,183		349,271		49
Other asset-backed securities		156,273		432,430		100		166,558		589,234		98
Total temporarily impaired
securities	$	599,346	$	3,842,874		525	$	720,279	$	6,821,666		604

Other-Than-Temporary Impairments on Available For Sale Securities

The Company periodically reviews its available for sale fixed maturities on a case-by-case basis to determine if any decline in fair value to below cost or amortized cost is other-than-temporary. Factors considered in determining whether a decline is other-than-temporary include the length of time a security has been in an unrealized loss position, the severity of the unrealized loss and the reasons for the decline in value, and expectations for the amount and timing of a recovery in fair value.

Securities the Company determines are underperforming or potential problem securities are subject to regular review. To facilitate the review, securities with significant declines in value, or where other objective criteria evidencing credit deterioration have been met, are included on a watch list. Among the criteria for securities to be

included on a watch list are: credit deterioration that has led to a significant decline in fair value of the security; a significant covenant related to the security has been breached; or an issuer has filed or indicated a possibility of filing for bankruptcy, has missed or announced it intends to miss a scheduled interest or principal payment, or has experienced a specific material adverse change that may impair its creditworthiness.

Jackson National Life Insurance Company and Subsidiaries

Notes to Consolidated Financial Statements

December 31, 2011

In performing these reviews, the Company considers the relevant facts and circumstances relating to each investment and exercises considerable judgment in determining whether a security is other-than-temporarily impaired. Assessment factors include judgments about an obligor’s current and projected financial position, an issuer’s current and projected ability to service and repay its debt obligations, the existence of, and realizable value of, any collateral backing the obligations and the macro-economic and micro-economic outlooks for specific industries and issuers. This assessment may also involve assumptions regarding underlying collateral such as prepayment rates, default and recovery rates, and third-party servicing capabilities.

Among the specific factors considered are whether the decline in fair value results from a change in the credit quality of the security itself, or from a downward movement in the market as a whole, and the likelihood of recovering the carrying value based on the near-term prospects of the issuer. Unrealized losses that are considered to be primarily the result of market conditions (e.g., minor increases in interest rates, temporary market illiquidity or volatility, or industry-related events) are usually determined to be temporary, and where the Company also believes there exists a reasonable expectation for recovery in the near term. To the extent that factors contributing to impairment losses recognized affect other investments, such investments are also reviewed for other-than-temporary impairment and losses are recorded when appropriate.

In addition to the review procedures described above, investments in asset-backed securities where market prices are depressed are subject to a review of their future estimated cash flows, including expected and stress case scenarios, to identify potential shortfalls in contractual payments. These estimated cash flows are developed using available performance indicators from the underlying assets including current and projected default or delinquency rates, levels of credit enhancement, current subordination levels, vintage, expected loss severity and other relevant characteristics. These estimates reflect a combination of data derived by third parties and internally developed assumptions. Where possible, this data is benchmarked against third-party sources.

Even in the case of severely depressed market values on asset-backed securities, the Company places significant reliance on the results of its cash flow testing and its lack of an intent to sell these securities until their fair values recover when reaching other-than-temporary impairment conclusions with regard to these securities. Other-than-temporary impairment charges are recorded on asset-backed securities when the Company forecasts a contractual payment shortfall.

Jackson recognizes other-than-temporary impairments on debt securities in an unrealized loss position when any one of the following circumstances exists:

·	The Company does not expect full recovery of the amortized cost based on the discounted cash flows estimated to be collected;

·	The Company intends to sell a security; or,

·	It is more likely than not that the Company will be required to sell a security prior to recovery.

For mortgage-backed securities, credit impairment is assessed using a cash flow model that estimates the cash flows on the underlying mortgages, using the security-specific collateral characteristics and transaction structure. The model estimates cash flows from the underlying mortgage loans and distributes those cash flows to various tranches of securities, considering the transaction structure and any subordination and credit enhancements existing in that structure. The cash flow model incorporates actual cash flows on the mortgage-backed securities through the current period and then projects the remaining cash flows using a number of assumptions, including prepayment speeds, default rates and loss severity.

Specifically for Prime and Alt-A RMBS, the default percentage is dependent on the severity of delinquency status, with foreclosures and real estate owned receiving higher rates, but also includes the currently performing loans. As of December 31, 2011 and 2010, default rates for delinquent loans ranged from 15% to 100%. At December 31, 2011 and 2010, loss severities were applied to generate and analyze cash flows of each bond and ranged from 30% to 65% and 30% to 62.5%, respectively.

Jackson National Life Insurance Company and Subsidiaries

Notes to Consolidated Financial Statements

December 31, 2011

These estimates reflect a combination of data derived by third parties and internally developed assumptions. Where possible, this data is benchmarked against other third-party sources. In addition, these estimates are extrapolated along a default timing curve to estimate the total lifetime pool default rate.Other-than-temporary impairments are calculated as the difference between amortized cost and fair value. For other-than-temporarily impaired securities where Jackson does not intend to sell the security and for which it is not more likely than not that Jackson will be required to sell the security prior to recovery, total other-than-temporary impairments are reduced by the non-credit portion of the other-than-temporary impairments, which are recognized in other comprehensive income. The resultant net other-than-temporary impairments recorded in net income reflect the credit loss on the other-than-temporarily impaired securities. The amortized cost of the other-than-temporarily impaired securities is reduced by the amount of this credit loss.

For securities that were deemed to be other-than-temporarily impaired and for which a non-credit loss was recorded in other comprehensive income, the amount recorded as an unrealized gain (loss) represents the difference between the fair value and the new amortized cost basis of the securities. The unrealized gain (loss) on other-than-temporarily impaired securities is recorded in other comprehensive income.

The following table summarizes net realized investment gains (losses) for the periods indicated (in thousands):

	Years Ended December 31,
	2011			2010			2009
Available-for-sale securities
Realized gains on sale	$	287,507		$	440,843		$	464,044
Realized losses on sale		(85,037	)		(356,080	)		(209,720	)
Impairments:
Total other-than-temporary impairments		(305,805	)		(319,977	)		(1,196,893	)
Portion of other-than-temporary impairments
included in other comprehensive income		218,710			176,719			422,186
Net other-than-temporary impairments		(87,095	)		(143,258	)		(774,707	)
Transfer to trading portfolio		-			-			(87,491	)
Other		(1,442	)		3,000			(4	)
Net realized gains (losses) on non-derivative investments		113,933			(55,495	)		(607,878	)
Net losses on derivative instruments		(874,038	)		(1,109,469	)		(136,553	)
Total net realized losses on investments	$	(760,105	)	$	(1,164,964	)	$	(744,431	)

Included in net realized losses on investments are impairment charges on commercial mortgage loans and other invested assets of $19.3 million and $5.0 million in 2011 and 2010, respectively. There were no such impairment charges in 2009. The net losses on derivative instruments included in the above table are further detailed in Note 5.

The aggregate fair value of securities sold at a loss for the years ended December 31, 2011, 2010 and 2009 was $1,053.2 million, $1,926.7 million and $1,334.7 million, respectively, which was approximately 93%, 84% and 86% of book value, respectively.

Jackson National Life Insurance Company and Subsidiaries

Notes to Consolidated Financial Statements

December 31, 2011

The following summarizes the current year activity for credit losses recognized in net income on debt securities where an other-than-temporary impairment was identified and the non-credit portion of the other-than-temporary impairment was included in other comprehensive income (in thousands):

	Years Ended December 31,
	2011			2010
Cumulative credit loss beginning balance	$	698,370		$	1,062,190
Additions:
New credit losses		35,724			61,354
Incremental credit losses		32,073			76,904
Reductions:
Securities sold, paid down or disposed of		(361,411	)		(502,078	)
Cumulative credit loss ending balance	$	404,756		$	698,370

There are inherent uncertainties in assessing the fair values assigned to the Company’s investments and in determining whether a decline in fair value is other-than-temporary. The Company’s reviews of net present value and fair value involve several criteria including economic conditions, credit loss experience, other issuer-specific developments and estimated future cash flows. These assessments are based on the best available information at the time. Factors such as market liquidity, the widening of bid/ask spreads and a change in the cash flow assumptions can contribute to future price volatility. If actual experience differs negatively from the assumptions and other considerations used in the consolidated financial statements, unrealized losses currently reported in accumulated other comprehensive income may be recognized in the consolidated income statements in future periods.

The Company currently has no intent to sell securities with unrealized losses considered to be temporary until they mature or recover in value and believes that it has the ability to do so. However, if the specific facts and circumstances surrounding an individual security, or the outlook for its industry sector change, the Company may sell the security prior to its maturity or recovery and realize a loss.

Commercial Mortgage Loans

Commercial mortgage loans of $5.5 billion and $5.7 billion at December 31, 2011 and 2010, respectively, are reported net of an allowance for loan losses of $20.1 million and $33.2 million at each date, respectively. At December 31, 2011, commercial mortgage loans were collateralized by properties located in 41 states. Jackson’s commercial mortgage loan portfolio does not include single-family residential mortgage loans, and is therefore not exposed to the risk of defaults associated with residential subprime mortgage loans. Jackson periodically reviews these loans for impairment and, during 2011, 2010 and 2009, recognized impairment charges against the allowance for loan losses of $34.5 million, $17.7 million and $13.8 million, respectively. In addition, Jackson recorded an impairment as a realized loss of $9.7 million during 2011.

Activity in the allowance for loan losses for Jackson’s commercial mortgage loan portfolio is as follows (in thousands):

	Years Ended December 31,
Allowance for loan losses:	2011			2010
Balance at beginning of year	$	33,190		$	14,246
Charge-offs		(34,474	)		(17,717	)
Recoveries		-			-
Net charge-offs		(34,474	)		(17,717	)
Provision for loan losses		21,390			36,661
Balance at end of year	$	20,106		$	33,190

Jackson National Life Insurance Company and Subsidiaries

Notes to Consolidated Financial Statements

December 31, 2011

The following table provides a summary of the allowance for losses in Jackson’s commercial mortgage loan portfolio (in thousands):

	Allowance for Loan Losses		Recorded Investment
December 31, 2011:
Individually evaluated for impairment	$	3,481	$	214,335
Collectively evaluated for impairment		16,625		5,316,035
Total	$	20,106	$	5,530,370

December 31, 2010:
Individually evaluated for impairment	$	22,256	$	215,832
Collectively evaluated for impairment		10,934		5,484,533
Total	$	33,190	$	5,700,365

The table below illustrates the delinquency status and accrual status of the carrying value of Jackson's commercial mortgage loan holdings as of December 31, 2011 and 2010 (in thousands). Delinquency status is determined from the date of the first missed contractual payment.

	2011		2010
Accruing
Current	$	5,518,802	$	5,627,862
Less than 60 days delinquent		-		57,078
60 days to 90 days delinquent		-		-
91 days or more delinquent		3,000		-
Total accruing		5,521,802		5,684,940
Non-accrual		8,568		15,425
Total	$	5,530,370	$	5,700,365

During 2011 and 2010, Jackson reduced interest income by $1.3 million and $0.4 million, respectively, on commercial mortgage loans that had been placed on non-accrual. There were no comparable reductions during 2009.

Jackson National Life Insurance Company and Subsidiaries

Notes to Consolidated Financial Statements

December 31, 2011

Under Jackson's policy for monitoring commercial mortgage loans, all impaired commercial mortgage loans continue to be closely evaluated subsequent to impairment. The table below summarizes the recorded investment, unpaid principal balance, related loan allowance, average recorded investment and investment income recognized on impaired loans during 2011 and 2010 (in thousands):

	Recorded Investment		Unpaid Principal Balance		Related Loan Allowance		Average Recorded Investment		Investment Income Recognized
December 31, 2011:
Impaired Loans with a Valuation Allowance
Hotel	$	41,592	$	44,920	$	3,328	$	41,116	$	1,658
Office		11,319		11,472		153		11,038		688
Total		52,911		56,392		3,481		52,154		2,346
Impaired Loans without a Valuation Allowance
Apartment		92,250		113,107		-		105,143		4,601
Hotel		27,109		34,581		-		29,583		1,252
Office		30,084		31,893		-		30,515		594
Retail		3,000		9,618		-		5,179		596
Warehouse		8,981		9,981		-		9,065		660
Total		161,424		199,180		-		179,485		7,703
Total Impaired Loans
Apartment		92,250		113,107		-		105,143		4,601
Hotel		68,701		79,501		3,328		70,699		2,910
Office		41,403		43,365		153		41,553		1,282
Retail		3,000		9,618		-		5,179		596
Warehouse		8,981		9,981		-		9,065		660
Total	$	214,335	$	255,572	$	3,481	$	231,639	$	10,049
December 31, 2010:
Impaired Loans with a Valuation Allowance
Apartment	$	36,259	$	43,700	$	7,440	$	40,772	$	114
Hotel		108,454		120,002		11,547		120,864		1,565
Office		10,749		11,472		723		11,412		360
Retail		7,073		9,618		2,546		9,214		311
Total		162,535		184,792		22,256		182,262		2,350
Impaired Loans without a Valuation Allowance
Apartment		21,120		22,000		-		21,927		1,339
Office		19,914		24,914		-		23,788		499
Warehouse		12,263		14,763		-		11,379		557
Total		53,297		61,677		-		57,094		2,395
Total Impaired Loans
Apartment		57,379		65,700		7,440		62,699		1,453
Hotel		108,454		120,002		11,547		120,864		1,565
Office		30,663		36,386		723		35,200		859
Retail		7,073		9,618		2,546		9,214		311
Warehouse		12,263		14,763		-		11,379		557
Total	$	215,832	$	246,469	$	22,256	$	239,356	$	4,745

Jackson National Life Insurance Company and Subsidiaries

Notes to Consolidated Financial Statements

December 31, 2011

The following table provides information about the credit quality of commercial mortgage loans as of December 31, 2011 (in thousands):

	In Good Standing		Restructured		Greater than 90 Days Delinquent		In the Process of Foreclosure		Total Carrying Value
Apartment	$	1,213,009	$	32,710	$	-	$	-	$	1,245,719
Hotel		583,824		53,592		-		6,000		643,416
Office		940,026		41,403		-		-		981,429
Retail		1,071,383		-		3,000		-		1,074,383
Warehouse		1,578,147		7,276		-		-		1,585,423
Total	$	5,386,389	$	134,981	$	3,000	$	6,000	$	5,530,370

The $3.0 million balance of commercial mortgage loans that were greater than 90 days delinquent were also restructured.

The following table provides information about commercial mortgage loans involved in a troubled debt restructuring as of December 31, 2011 (in thousands, except number of contracts):

			Pre-Modification		Post-Modification
	Number of		Outstanding Recorded		Outstanding Recorded
	Contracts		Investment		Investment
Troubled Debt Restructurings
Office		2	$	21,188	$	21,188
Total		2	$	21,188	$	21,188

During 2011, there were no commercial mortgage loans involved in a troubled debt restructuring that subsequently defaulted.

Securitizations

In 2003, Jackson executed the Piedmont CDO Trust (“Piedmont”) securitization transaction. In this transaction, Jackson contributed $1,159.6 million of asset-backed securities, ultimately to Piedmont, which issued several classes of debt to acquire such securities. The transaction was recorded as a sale; however, Jackson retained beneficial interests in the contributed asset-backed securities of approximately 80% by acquiring certain securities issued by Piedmont. Prior to 2010, Piedmont, a qualified special purpose entity, was not consolidated by Jackson.

Effective January 1, 2010, as a result of adoption of ASC 2009-16, Jackson was deemed to be the primary beneficiary of Piedmont and consolidation of Piedmont was required.

As a result of this change, the Company recorded a decrease in retained earnings of $48.2 million upon consolidation of Piedmont. At December 31, 2010, Piedmont’s assets of $463.9 million and liabilities to external parties of $26.2 million were included in Jackson’s financial statements. At the date of adoption, Jackson also elected to carry the assets and liabilities in Piedmont at fair value, with changes in fair value reflected in the consolidated income statement. The creditors of Piedmont do not have recourse to the general credit of Jackson.

During 2011, Jackson purchased the remaining outstanding external interest and, as a result, Piedmont was terminated.

Jackson National Life Insurance Company and Subsidiaries

Notes to Consolidated Financial Statements

December 31, 2011

In 2001, Jackson executed the Morgan Stanley Dean Witter Capital I, Series 2001-PPM (“MSDW”) securitization transaction. Jackson contributed commercial mortgages with a total principal amount of $623.6 million to MSDW and retained beneficial interest. Prior to 2010, MSDW, a qualified special purpose entity, was not consolidated by Jackson.

Effective January 1, 2010, as a result of adoption of ASC 2009-16, the Company was deemed to be the primary beneficiary of the variable interest entity MSDW and, as such, was required to consolidate their financial results into Jackson’s consolidated financial statements. In March 2011, the external debt of MSDW was paid off entirely. As such, Jackson’s consolidated financial statements include MSDW assets of $48.1 million at December 31, 2011 and MSDW assets and external liabilities of $80.6 million and $14.7 million, respectively, at December 31, 2010.

Other Invested Assets

Other invested assets primarily include investments in limited partnerships, real estate, and other loans. Investments in limited partnerships have carrying values of $1,086.5 million and $865.8 million at December 31, 2011 and 2010, respectively. Real estate totaling $168.9 million and $152.8 million at December 31, 2011 and 2010, respectively, includes foreclosed properties with a book value of $19.2 million and $13.8 million, respectively. Other loans have carrying values of $0 and $19.4 million and weighted average interest rates of 2.25% and 3.46% at December 31, 2011 and 2010, respectively.

Limited Purpose Enhanced Return Entities (“SERVES”)

In 2004, Jackson acquired a $47.5 million debt interest in a limited purpose entity, SERVES 2004-1 (“SERVES 3”), formed to pass through leveraged investment returns based on the performance of an underlying reference pool of syndicated bank loans totaling up to $300.0 million. Jackson’s interest represented 95% of the capital structure of the entity. Based on the Company’s initial analysis, it concluded that SERVES 3 was a VIE and that the Company was not the primary beneficiary. Thus, the Company’s investment was reported at the fair value of this debt instrument.

During 2008, Jackson entered into “Option Put and Forbearance Agreements” with the counterparty to the SERVES 3 entity in exchange for the counterparty forbearing its right to initiate forced liquidation of the entity under certain market value triggers. During 2009, Jackson entered into revised forbearance agreements with this counterparty. The support provided by the agreement at December 31, 2011 could potentially expose Jackson to maximum losses of $110.7 million, if circumstances allowed the forbearance period to cease. Jackson believes that, so long as the forbearance period continues, the risk of loss under the agreement is remote.

As a result of the additional exposure to SERVES 3 upon entering into the “Option Put and Forbearance Agreement”, Jackson determined that it is the primary beneficiary of SERVES 3 and, accordingly, consolidated SERVES 3 in its financial statements. The accompanying consolidated financial statements include the underlying assets of $49.5 million and $42.8 million and net liabilities of $2.7 million and $8.4 million in 2011 and 2010, respectively, of this entity. The creditors of SERVES 3 do not have recourse to the general credit of Jackson.

In 2008, Jackson acquired $40.0 million of debt interests in a limited purpose entity, SERVES 2006-1 (“SERVES 4”), formed to pass through leveraged investment returns based on the performance of an underlying reference pool of syndicated bank loans totaling up to $500.0 million. At the acquisition date, the Company performed an analysis, which produced return scenarios based on various assumptions for the reference pool, including spread income, default and recovery ratios, and holding period appreciation/depreciation, to determine whether the structure was a variable interest entity and, if so, whether Jackson was the primary beneficiary. Based on the results of this analysis, the Company concluded that SERVES 4 was a VIE and that Jackson was not the primary beneficiary. Thus, the Company’s investment was reported at the fair value of this debt instrument. SERVES 4 notes were sold at par in May 2011.

Jackson National Life Insurance Company and Subsidiaries

Notes to Consolidated Financial Statements

December 31, 2011

Securities Lending

The Company has entered into securities lending agreements with an agent bank whereby blocks of securities are loaned to third parties, primarily major brokerage firms. As of December 31, 2011 and 2010, the estimated fair value of loaned securities was $51.6 million and $56.7 million, respectively. The agreements require a minimum of 102 percent of the fair value of the loaned securities to be held as collateral, calculated on a daily basis. To further minimize the credit risks related to this program, the financial condition of counterparties is monitored on a regular basis. At December 31, 2011 and 2010, cash collateral received in the amount of $53.3 million and $58.1 million, respectively, was invested by the agent bank and included in cash equivalents of the Company. A securities lending payable is included in liabilities for the amount of cash collateral received.

Securities lending transactions are used to generate income. Income and expenses associated with these transactions are reported as net investment income.

Investment Income

The sources of net investment income were as follows (in thousands):

	Years Ended December 31,
	2011			2010			2009
Fixed maturities	$	2,164,833		$	2,258,099		$	2,242,491
Commercial mortgage loans		283,881			285,123			330,194
Limited partnerships		85,949			69,250			(89,829	)
Derivative instruments		64,710			39,498			(89,013	)
Other investment income		97,318			124,630			158,717
Total investment income		2,696,691			2,776,600			2,552,560
Less investment expenses		(52,105	)		(72,147	)		(63,779	)
Net investment income	$	2,644,586		$	2,704,453		$	2,488,781

During 2011, 2010 and 2009, $17.0 million, $65.5 million and $57.2 million of investment income was recognized on trading securities held at December 31, 2011, 2010 and 2009, respectively. During 2011 and 2010, $11.2 million and $54.7 million, respectively, of investment income was recognized on fixed maturity securities carried at fair value with changes in value recorded through the income statement. The net investment income (loss) on derivative instruments included in the above table are further detailed in Note 5.

5. Derivative Instruments

Jackson’s business model includes the acceptance, monitoring and mitigation of risk. Specifically, Jackson considers, among other factors, exposures to interest rate and equity market movements, foreign exchange rates and other asset or liability prices. The Company uses derivative instruments to mitigate or reduce these risks in accordance with established policies and goals. Jackson’s derivative holdings, while effective in managing defined risks, are not structured to meet accounting requirements to be designated as hedging instruments and are carried at fair value with changes recorded in other investment gains (losses).

Cross-currency swaps, which embody spot and forward currency swaps and, in some cases, interest rate and equity index swaps, are entered into for the purpose of hedging the Company issued foreign currency denominated trust instruments supported by funding agreements. Cross-currency swaps serve to hedge derivatives embedded in the funding agreements and are carried at fair value. The fair value of derivatives embedded in funding agreements, as well as unrealized foreign currency translation gains and losses, are included in the carrying value of the trust instruments supported by funding agreements. Foreign currency translation gains and losses associated with funding agreement hedging activities are included in other investment gains (losses).

Jackson National Life Insurance Company and Subsidiaries

Notes to Consolidated Financial Statements

December 31, 2011

Credit default swaps, with maturities up to five years, are agreements under which the Company has purchased default protection on certain underlying corporate bonds held in its portfolio. These contracts allow the Company to sell the protected bonds at par value to the counterparty if a defined “default event” occurs, in exchange for periodic payments made by the Company for the life of the agreement. Credit default swaps are carried at fair value. The Company does not currently sell default protection using credit default swaps or other similar derivative instruments.

Put-swaption contracts provide the purchaser with the right, but not the obligation, to require the writer to pay the present value of a long-term interest rate swap at future exercise dates. The Company purchases and writes put-swaptions for hedging purposes with original maturities of up to 10 years. Put-swaptions hedge against significant movements in interest rates. Written put-swaptions are entered into in conjunction with associated put-swaptions purchased from the same counterparties (“linked put-swaptions”). Linked put-swaptions have identical notional amounts and strike prices, but have different underlying swap terms. Due to the right of offset, linked put-swaptions are presented at the fair value of the net position with each counterparty. Non-linked put-swaptions are carried at fair value.

Equity index futures contracts and equity index options (including various call and put options and put spreads), which are used to hedge the Company’s obligations associated with its index linked annuities and guarantees in variable annuity products, are carried at fair value. These insurance products contain embedded options whose fair value is reported in other contract holder funds.

Total return swaps, in which the Company receives equity returns or returns based on reference pools of assets in exchange for short-term floating rate payments based on notional amounts, are held for both hedging and investment purposes, and are carried at fair value.

Interest rate swap agreements used for hedging purposes generally involve the exchange of fixed and floating payments based on a notional contract amount over the period for which the agreement remains outstanding without an exchange of the underlying notional amount. Interest rate swaps are carried at fair value. During 2011 and 2010, the Company entered into various interest rate swap transactions to more closely match the overall asset and liability duration.

Jackson National Life Insurance Company and Subsidiaries

Notes to Consolidated Financial Statements

December 31, 2011

A summary of the aggregate contractual or notional amounts and fair values of freestanding derivative instruments outstanding were as follows (in thousands):

	December 31, 2011
	Assets				Liabilities
	Contractual/				Contractual/					Net
	Notional		Fair		Notional		Fair			Fair
	Amount (1)		Value		Amount (1)		Value			Value
Credit default swaps	$	45,000	$	2,207	$	165,000	$	(11,738	)	$	(9,531	)
Cross-currency swaps		529,987		142,364		73,200		(11,017	)		131,347
Equity index call
options		2,817,800		173,605		4,756,897		(492,171	)		(318,566	)
Equity index futures		-		-		5,636,700		(114,369	)		(114,369	)
Equity index put
options		38,350,000		330,554		1,250,000		(8,725	)		321,829
Interest rate swaps		13,800,000		1,476,006		14,350,000		(740,578	)		735,428
Put-swaptions		15,500,000		478,798		2,000,000		(309	)		478,489
Total return swaps		300,000		1,934		-		-			1,934
Total	$	71,342,787	$	2,605,468	$	28,231,797	$	(1,378,907	)	$	1,226,561

	December 31, 2010
	Assets				Liabilities
	Contractual/				Contractual/					Net
	Notional		Fair		Notional		Fair			Fair
	Amount (1)		Value		Amount (1)		Value			Value
Credit default swaps	$	40,000	$	372	$	210,000	$	(19,730	)	$	(19,358	)
Cross-currency swaps		593,451		175,454		270,906		(34,720	)		140,734
Equity index call
options		5,502,500		125,641		1,356,897		(462,209	)		(336,568	)
Equity index futures		-		-		4,228,875		(117,450	)		(117,450	)
Equity index put
options		12,600,000		215,768		-		-			215,768
Interest rate swaps		11,250,000		446,212		13,300,000		(576,480	)		(130,268	)
Put-swaptions		20,500,000		46,930		6,000,000		(34,387	)		12,543
Total return swaps		-		-		300,000		(5,831	)		(5,831	)
Total	$	50,485,951	$	1,010,377	$	25,666,678	$	(1,250,807	)	$	(240,430	)

(1) With respect to swaps and put-swaptions, the notional amount represents the stated principal balance used as a basis for calculating payments. With respect to futures and options, the contractual amount represents the market exposure of open positions.

Jackson National Life Insurance Company and Subsidiaries

Notes to Consolidated Financial Statements

December 31, 2011

The following tables reflect the results of the Company’s derivatives, including gains (losses) and change in fair value of freestanding derivative instruments and embedded derivatives (in thousands):

	Year Ended December 31, 2011
	Other			Net Investment Income
	Investment						Net Gain (Loss)
	Gains (Losses)						Net Gain (Loss)
Credit default swaps	$	9,420		$	(10,452	)	$	(1,032	)
Equity index call options		77,616			-			77,616
Equity index futures		(528,345	)		-			(528,345	)
Equity index put options		(270,405	)		-			(270,405	)
Index-linked annuity embedded derivatives		(8,644	)		-			(8,644	)
Interest rate swaps		816,426			64,535			880,961
Put-swaptions		469,869			(2,779	)		467,090
Total return swaps		-			13,406			13,406
Variable annuity embedded derivatives		(1,439,975	)		-			(1,439,975	)
Total	$	(874,038	)	$	64,710		$	(809,328	)

	Year Ended December 31, 2010
	Other			Net Investment Income
	Investment						Net Gain (Loss)
	Gains (Losses)						Net Gain (Loss)
Credit default swaps	$	8,617		$	(10,900	)	$	(2,283	)
Equity index call options		(63,733	)		-			(63,733	)
Equity index futures		(537,361	)		-			(537,361	)
Equity index put options		(524,671	)		-			(524,671	)
Index-linked annuity embedded derivatives		(211,684	)		-			(211,684	)
Interest rate swaps		116,276			(15,446	)		100,830
Put-swaptions		11,202			3,646			14,848
Spread cap options		(18,089	)		31,790			13,701
Total return swaps		-			30,408			30,408
Variable annuity embedded derivatives		109,974			-			109,974
Total	$	(1,109,469	)	$	39,498		$	(1,069,971	)

	Year Ended December 31, 2009
	Other			Net Investment Income
	Investment						Net Gain (Loss)
	Gains (Losses)						Net Gain (Loss)
Credit default swaps	$	(11,494	)	$	(13,496	)	$	(24,990	)
Equity index call options		(6,895	)		-			(6,895	)
Equity index futures		(396,329	)		-			(396,329	)
Equity index put options		(792,760	)		-			(792,760	)
Index-linked annuity embedded derivatives		(189,464	)		-			(189,464	)
Interest rate swaps		612,872			(205,639	)		407,233
Put-swaptions		4,022			3,030			7,052
Spread cap options		48,898			52,622			101,520
Total return swaps		-			74,470			74,470
Variable annuity embedded derivatives		594,597			-			594,597
Total	$	(136,553	)	$	(89,013	)	$	(225,566	)

Jackson National Life Insurance Company and Subsidiaries

Notes to Consolidated Financial Statements

December 31, 2011

At December 31, 2011 and 2010, the fair value of Jackson’s net derivative assets by counterparty were $1,457.1 million and $308.3 million, respectively, and held collateral was $1,505.5 million and $282.3 million, respectively, related to these agreements. At December 31, 2011 and 2010, the fair value of Jackson’s net derivative liabilities by counterparty were $230.5 million and $548.7 million, respectively, and provided collateral was $172.5 million and $484.3 million, respectively, related to these agreements. All of Jackson’s master swap agreements contain credit downgrade provisions that allow a party to assign or terminate derivative transactions if the counterparty’s credit rating declines below an established limit. If all of these provisions had been triggered at December 31, 2011 or 2010, Jackson would have to disburse $106.5 million and $38.4 million, respectively, to counterparties, representing the net fair values of derivatives by counterparty, less collateral held.

6.	Deferred Policy Acquisition Costs and Deferred Sales Inducement Costs

The balances of and changes in deferred policy acquisition costs, as of and for the years ended December 31, were as follows (in thousands):

	2011			2010			2009
Balance, beginning of year	$	5,305,670		$	4,738,901		$	4,889,889
Deferrals of acquisition costs		1,251,198			1,180,950			944,596
Amortization related to:
Operations		(707,738	)		(361,602	)		(108,238	)
Derivatives		252,003			443,293			341,509
Net realized (gains) losses		(14,861	)		5,553			72,349
Total amortization		(470,596	)		87,244			305,620
Unrealized investment gains		(455,668	)		(708,151	)		(1,397,712	)
Other		4,664			6,726			(3,492	)
Balance, end of year	$	5,635,268		$	5,305,670		$	4,738,901

The balances of and changes in deferred sales inducement costs, which are reported in other assets, as of and for the years ended December 31, were as follows (in thousands):

	2011			2010			2009
Balance, beginning of year	$	451,096		$	476,749		$	565,943
Deferrals of sales inducements		183,517			144,037			132,196
Amortization related to:
Operations		(136,469	)		(97,729	)		(43,542	)
Derivatives		170,948			21,248			1,201
Net realized (gains) losses		(1,241	)		897			10,062
Total amortization		33,238			(75,584	)		(32,279	)
Unrealized investment gains		(65,369	)		(94,106	)		(195,855	)
Other		-			-			6,744
Balance, end of year	$	602,482		$	451,096		$	476,749

Jackson National Life Insurance Company and Subsidiaries

Notes to Consolidated Financial Statements

December 31, 2011

7.	Certain Nontraditional Long-Duration Contracts and Variable Annuity Guarantees

The Company issues variable contracts through its separate accounts for which investment income and investment gains and losses accrue directly to, and investment risk is borne by, the contract holder (traditional variable annuities). The Company also issues variable annuity and life contracts through separate accounts where the Company contractually guarantees to the contract holder (variable contracts with guarantees) either a) return of no less than total deposits made to the contract adjusted for any partial withdrawals, b) total deposits made to the contract adjusted for any partial withdrawals plus a minimum return, or c) the highest contract value on a specified anniversary date adjusted for any withdrawals following the contract anniversary. These guarantees include benefits that are payable in the event of death (GMDB), annuitization (GMIB), at specified dates during the accumulation period (GMWB) or at the end of a specified period (GMAB).

The assets supporting the variable portion of both traditional variable annuities and variable contracts with guarantees are carried at fair value and reported as summary total separate account assets with an equivalent summary total reported for separate account liabilities. Liabilities for guaranteed benefits are general account obligations and are reported in reserves for future policy benefits and claims payable. Amounts assessed against the contract holders for mortality, administrative, and other services are reported in revenue. Changes in liabilities for minimum guarantees are reported within death, other policy benefits and change in policy reserves in the consolidated income statement with the exception of changes in embedded derivatives, which are included in other investment losses. Separate account net investment income, net investment gains and losses, and the related liability changes are offset within the same line item in the consolidated income statements.

Jackson National Life Insurance Company and Subsidiaries

Notes to Consolidated Financial Statements

December 31, 2011

At December 31, 2011 and 2010, the Company provided variable annuity contracts with guarantees, for which the net amount at risk (“NAR”) is the amount of guaranteed benefit in excess of current account value, as follows (dollars in millions):

									Average
									Period
								Weighted	until
December 31, 2011	Minimum			Account		Net Amount		Average	Expected
	Return			Value		at Risk		Attained Age	Annuitization
Return of net deposits plus a minimum return
GMDB		0-6	%	$	49,063.8	$	4,528.9	64.2 years
GMWB - Premium only		0	%		3,613.5		303.2
GMWB - For life		0-5	%*		4,012.6		904.8
GMAB - Premium only		0	%		83.3		3.0
Highest specified anniversary account value minus
withdrawals post-anniversary
GMDB					6,218.9		1,053.7	63.7 years
GMWB - Highest anniversary only					2,883.3		657.6
GMWB - For life					1,143.0		336.7
Combination net deposits plus minimum return, highest
specified anniversary account value minus
withdrawals post-anniversary
GMDB		0-6	%		3,260.8		744.7	66.1 years
GMIB		0-6	%		2,582.0		893.7		4.2 years
GMWB - For life		0-8	%*		34,037.8		3,517.2

									Average
									Period
								Weighted	until
December 31, 2010	Minimum			Account		Net Amount		Average	Expected
	Return			Value		at Risk		Attained Age	Annuitization
Return of net deposits plus a minimum return
GMDB		0-6	%	$	39,987.3	$	3,297.3	64.0 years
GMWB - Premium only		0	%		4,293.0		233.4
GMWB - For life		0-5	%*		3,124.5		649.5
GMAB - Premium only		0	%		74.8		1.6
Highest specified anniversary account value minus
withdrawals post-anniversary
GMDB					5,858.8		730.0	63.3 years
GMWB - Highest anniversary only					3,147.5		537.3
GMWB - For life					1,333.7		306.3
Combination net deposits plus minimum return, highest
specified anniversary account value minus
withdrawals post-anniversary
GMDB		0-6	%		2,767.8		486.9	65.7 years
GMIB		0-6	%		3,026.4		654.6		5.1 years
GMWB - For life		0-8	%*		23,525.1		1,052.8

* Ranges shown based on simple interest. The upper limits of 5% or 8% simple interest are approximately equal to 4.1% and 6%, respectively, on a compound interest basis over a typical 10-year bonus period.

Jackson National Life Insurance Company and Subsidiaries

Notes to Consolidated Financial Statements

December 31, 2011

Amounts shown as GMWB ‘for-life’ above include a ‘not-for-life’ component up to the point at which the guaranteed withdrawal benefit is exhausted, after which benefits paid are considered to be ‘for-life’ benefits. The liability related to this ‘not-for-life’ portion is valued as an embedded derivative, while the ‘for-life’ benefits are valued as an insurance liability (see below). For this table, the net amount at risk of the ‘not-for-life’ component is the undiscounted excess of the guaranteed withdrawal benefit over the account value, and that of the ‘for-life’ component is the estimated value of additional life contingent benefits paid after the guaranteed withdrawal benefit is exhausted.

Account balances of contracts with guarantees were invested in variable separate accounts as follows (in millions):

	December 31,
Fund type:	2011		2010
Equity	$	44,916.8	$	37,327.4
Bond		6,606.6		5,350.1
Balanced		5,976.5		5,237.9
Money market		1,052.8		705.7
Total	$	58,552.7	$	48,621.1

GMDB liabilities reflected in the general account were as follows (in millions):

	2011			2010			2009
Balance at January 1	$	342.0		$	308.7		$	434.3
Incurred guaranteed benefits		198.4			125.7			21.0
Paid guaranteed benefits		(73.8	)		(92.4	)		(146.6	)
Balance at December 31	$	466.6		$	342.0		$	308.7

The GMDB liability is determined by estimating the expected value of death benefits in excess of the projected account balance and recognizing the excess ratably over the accumulation period based on total expected assessments. The Company regularly evaluates estimates used and adjusts the liability balance through the income statement within death, other policy benefits and change in policy reserves, if actual experience or other evidence suggests that earlier assumptions should be revised.

The following assumptions and methodology were used to determine the GMDB liability at both December 31, 2011 and 2010 (except where otherwise noted):

1)	Use of a series of deterministic investment performance scenarios, based on historical average market volatility.

2)	Mean investment performance assumption of 8.4% after investment management fees, but before investment advisory fees and mortality and expense charges.

3)	Mortality equal to 85.0% of the Annuity 2000 table.

4)	Lapse rates varying by contract type, duration and degree the benefit is in-the-money and ranging from 0.13% to 44.0%, with an average of 4.0% during the surrender charge period and 10.0% thereafter.

5)	Discount rate of 8.4%.

Most GMWB reserves are considered to be derivatives under current accounting guidance and are recognized at fair value, with the change in fair value reported in current earnings. The fair value of these liabilities is determined using stochastic modeling and inputs as further described in Note 3. The GMWB reserve totaled $2,074.8 million and $313.5 million at December 31, 2011 and 2010, respectively, and was included in reserves for future policy benefits and claims payable.

Jackson has also issued certain GMWB products that guarantee payments over a lifetime. Reserves for the portion of these benefits after the point where the guaranteed withdrawal balance is exhausted are calculated as required by ASC 944-20. The reserve calculation uses a series of stochastic investment performance scenarios. Otherwise, the methodology and assumptions used are consistent with those used for calculating the GMDB liability. At December 31, 2011 and 2010, these GMWB reserves totaled $14.7 million and $46.5 million, respectively, and were included in reserves for future policy benefits and claims payable.

Jackson National Life Insurance Company and Subsidiaries

Notes to Consolidated Financial Statements

December 31, 2011

GMAB benefits are offered on some variable annuity plans and issues have been minimal as of December 31, 2011. These reserves totaled $3.2 million and $0.8 million at December 31, 2011 and 2010, respectively. This benefit was eliminated from Jackson’s product offerings in 2011.

The direct GMIB liability is determined at each period end by estimating the expected value of the annuitization benefits in excess of the projected account balance at the date of annuitization and recognizing the excess ratably over the accumulation period based on total expected assessments. The Company regularly evaluates estimates used and adjusts the liability balance through the income statement within death, policy benefits and change in policy reserves, if actual experience or other evidence suggests that earlier assumptions should be revised. The assumptions used for calculating the direct GMIB liability at December 31, 2011 and 2010, are consistent with those used for calculating the GMDB liability. At December 31, 2011 and 2010, GMIB reserves before reinsurance totaled $16.0 million and $7.5 million, respectively.

Other Liabilities – Insurance and Annuitization Benefits

The Company has established additional reserves for life insurance business for: universal life (“UL”) plans with secondary guarantees, interest-sensitive life (“ISWL”) plans that exhibit “profits followed by loss” patterns and account balance adjustments to tabular guaranteed cash values on one interest-sensitive life plan. The Company also has a small closed block of two-tier annuities, where different crediting rates are used for annuitization and surrender benefit calculations. A liability is established to cover future annuitization benefits in excess of surrender values. The total liability for this block is the surrender value, plus the ASC 944-20 annuitization reserve.

Liabilities for these benefits have been established according to the methodologies described below:

	December 31, 2011					December 31, 2010
Benefit Type	Liability (in millions)		Net Amount at Risk (in millions)		Weighted Average Attained Age	Liability (in millions)		Net Amount at Risk (in millions)		Weighted Average Attained Age
UL insurance benefit *	$	105.1	$	6,125.9	55.9 years	$	84.9	$	5,850.5	55.7 years
Two-tier annuitization		6.0		31.9	64.7 years		6.2		32.6	63.9 years
ISWL account balance
adjustment		73.0		n/a	n/a		66.3		n/a	n/a

* Amounts for the UL benefits are for the total of the plans containing any policies having projected non-zero excess benefits, and thus may include some policies with zero projected excess benefits.

The following assumptions and methodology were used to determine the UL insurance benefit liability at December 31, 2011 and 2010:

1)	Use of a series of deterministic premium persistency scenarios.

2)	Other experience assumptions similar to those used in amortization of deferred acquisition costs.

3)	Discount rates equal to the credited interest rates, approximately 4% to 5% projected.

The following assumptions and methodology were used to determine the two-tier annuitization benefit liability at December 31, 2011 and 2010:

1)	Use of a series of deterministic scenarios, varying by surrender rate and annuitization rate.

2)	Other experience assumptions similar to those used in amortization of deferred acquisition costs.

3)	Discount rates are equal to credited interest rates, approximately 3% to 4%.

Jackson National Life Insurance Company and Subsidiaries

Notes to Consolidated Financial Statements

December 31, 2011

Debt

The aggregate carrying value of borrowings was as follows (in thousands):

	December 31,
	2011		2010
Surplus notes	$	249,354	$	249,333
Mortgage loans		30,841		31,150
VIE related borrowings		2,500		43,322
FHLBI mortgage loan		15,000		15,000
Total	$	297,695	$	338,805

Due in less than 1 year	$	-
Due in more than 1 to 5 years		48,341
Due after 5 years		249,354
Total	$	297,695

Surplus notes

On March 15, 1997, the Company issued 8.15% surplus notes in the principal amount of $250.0 million due March 15, 2027. These surplus notes were issued pursuant to Rule 144A under the Securities Act of 1933, and are unsecured and subordinated to all present and future indebtedness, policy claims and other creditor claims.

Under Michigan insurance law, for statutory reporting purposes, the surplus notes are not part of the legal liabilities of the Company and are considered surplus funds. Payments of interest or principal may only be made with the prior approval of the Commissioner of Insurance of the state of Michigan and only out of surplus earnings which the Commissioner determines to be available for such payments under Michigan insurance law. The surplus notes may not be redeemed at the option of the Company or any holder prior to maturity.

Interest is payable semi-annually on March 15 and September 15 of each year. Interest paid totaled $20.4 million in each of 2011, 2010 and 2009.

Mortgage loans

At December 31, 2011 and 2010, certain consolidated real estate VIEs had outstanding mortgage loans with a weighted average interest rate of 4.4% and 4.4%, respectively, with maturities through 2016. Interest paid totaled $1.4 million, $2.1 million and $2.2 million in 2011, 2010 and 2009, respectively.

VIE related borrowings

Certain of the Company’s VIEs have “equity” classes issued in the form of non-investment grade debt. Accordingly, these equity classes are classified as notes payable rather than minority interest in the consolidated balance sheets. These notes accrue contingent interest in addition to the stated coupon. At December 31, 2011 there was only one equity class outstanding that matures in 2016. The outstanding principal amount accrued interest at a weighted average interest rate of 9.4% and 5.0% at December 31, 2011 and 2010, respectively. Interest paid on the notes in 2011, 2010 and 2009 totaled $0.2 million, $8.8 million and $0.4 million, respectively.

Additionally, certain of the Company’s consolidated VIEs issued debt to external parties, which was redeemed in 2011. While outstanding, the principal amount accrued interest at a weighted average interest rate of 0.8% in 2011 and 3.1% in 2010. Interest paid on the notes totaled $0.2 million and $2.6 million in 2011 and 2010, respectively, which were the only years these VIEs were consolidated in Jackson’s financial statements.

Jackson National Life Insurance Company and Subsidiaries

Notes to Consolidated Financial Statements

December 31, 2011

Federal Home Loan Bank Mortgage Loan

In 2010, Jackson received a mortgage loan from the FHLBI, under its community investment program. The loan accrues interest at 1.04% and the outstanding balance was $15.0 million as of both December 31, 2011 and 2010. Interest paid totaled $0.2 million during 2011. Jackson did not pay any interest on this mortgage loan during 2010, as the loan was executed in mid-December. At December 31, 2011, the mortgage loan was collateralized by real estate with a carrying value of $20.4 million.

9.	Federal Home Loan Bank Advances

Jackson entered into a short-term advance program with the FHLBI in which interest rates were either fixed or variable based on the FHLBI cost of funds or market rates. Advances of $150.0 million at an interest rate of 0.14% were outstanding at December 31, 2011. There were no advances outstanding at December 31, 2010. Jackson did not pay interest during 2011 since advances were only drawn in December. Jackson paid $0 million and $0.3 million of interest on advances during 2010 and 2009, respectively. Advances were collateralized by CMBS and other structured securities with a carrying value of $165.7 million at December 31, 2011.

10.	Repurchase Agreements

During 2011 and 2010, the Company entered into repurchase agreements whereby the Company agreed to sell and repurchase securities. These agreements are accounted for as financing transactions, with the assets and associated liabilities included in the consolidated balance sheets. Short-term borrowings under such agreements averaged $316.4 million and $289.1 million during 2011 and 2010, respectively, at weighted average interest rates of 0.2% for both years. The outstanding balance was $100.7 million and $552.5 million as of December 31, 2011 and 2010, respectively. Interest paid totaled $0.5 million, $0.6 million and $0.1 million in 2011, 2010 and 2009, respectively. The highest level of short-term borrowings at any month end was $683.2 million in 2011 and $552.5 million in 2010.

11.	Reinsurance

The Company assumes and cedes reinsurance from and to other insurance companies in order to limit losses from large exposures; however, if the reinsurer is unable to meet its obligations, the originating issuer of the coverage retains the liability. The Company monitors the financial strength rating of reinsurers on a monthly basis.

The maximum amount of life insurance risk retained by the Company on any one life is generally $2.0 million. Amounts not retained are ceded to other companies on either a yearly renewable-term or a coinsurance basis.

In connection with the purchase of Life of Georgia in 2005, Jackson acquired certain lines of business that are wholly ceded to non-affiliates. These include both direct and assumed accident and health business, direct and assumed life insurance business, and certain institutional annuities.

Jackson’s GMIBs are reinsured through an unrelated party and, due to the net settlement provisions of the reinsurance agreement, this contract meets the definition of a derivative. Accordingly, the GMIB reinsurance agreement is recorded at fair value on the Company’s balance sheets, with changes in fair value recorded through other investment gains (losses).

Jackson also ceded the GMDB coverage associated with certain variable annuities issued prior to 2003 to an affiliate, Prudential Atlantic Reinsurance Company, Dublin, Ireland (“PARC”). PARC is a wholly owned subsidiary of Prudential. Effective December 31, 2009, Jackson terminated the reinsurance agreement, paying a premium of $30.5 million to settle the experience account as defined in the agreement. The net effect of terminating the reinsurance agreement and recapturing reserves of $265.6 million was a loss of $10.3 million, net of deferred acquisition cost amortization.

Jackson National Life Insurance Company and Subsidiaries

Notes to Consolidated Financial Statements

December 31, 2011

The effect of reinsurance on premiums was as follows (in thousands):

	Years Ended December 31,
	2011			2010			2009
Direct premiums:
Life	$	257,015		$	273,247		$	289,755
Accident and health		3,020			9,058			10,867
Plus reinsurance assumed:
Life		12,728			13,736			15,020
Accident and health		860			1,122			1,207
Less reinsurance ceded:
Life		(109,407	)		(123,621	)		(125,084	)
Accident and health		(3,880	)		(10,180	)		(12,074	)
Annuity guaranteed benefits		(20,526	)		(20,641	)		(64,460	)
Total net premiums	$	139,810		$	142,721		$	115,231

Premiums ceded for guaranteed annuity benefits included $44.4 million to PARC during 2009.

The effect of reinsurance on benefits was as follows (in thousands):

	Years Ended December 31,
	2011			2010			2009
Direct benefits
Life	$	668,546		$	594,368		$	564,379
Accident and health		1,598			5,220			10,861
Annuity guaranteed benefits		73,756			92,382			146,634
Plus reinsurance assumed:
Life		27,317			27,934			30,115
Accident and health		468			560			694
Less reinsurance ceded:
Life		(118,408	)		(121,595	)		(108,985	)
Accident and health		(2,066	)		(5,780	)		(11,555	)
Annuity guaranteed benefits		-			-			(48,570	)
Deferral of contract enhancements		(172,389	)		(125,336	)		(91,873	)
Change in reserves, net of reinsurance		106,474			68,972			149,686
Total benefits	$	585,296		$	536,725		$	641,386

During 2009, benefits ceded for guaranteed annuity benefits included $48.6 million to PARC.

Jackson National Life Insurance Company and Subsidiaries

Notes to Consolidated Financial Statements

December 31, 2011

Components of the reinsurance recoverable were as follows (in thousands):

	December 31,
	2011		2010
Reserves:
Life	$	893,963	$	874,904
Accident and health		5,764		18,966
Guaranteed minimum income benefits		451,274		127,534
Other annuity benefits		23,129		25,184
Claims liability		33,411		40,748
Other		2,147		2,203
Total	$	1,409,688	$	1,089,539

Included in the reinsurance recoverable were reserves ceded to Brooke Life of $46.2 million and $47.7 million at December 31, 2011 and 2010, respectively. The largest amount ceded to any reinsurer at December 31, 2011 totaled $451.3 million, which was all related to the guaranteed minimum income benefits in the above table.

The following table sets forth the Company’s net life insurance in-force (in millions):

	December 31,
	2011			2010
Direct life insurance in-force	$	88,014		$	93,606
Amounts assumed from other companies		1,334			1,415
Amounts ceded to other companies		(47,059	)		(49,417	)
Net life insurance in-force	$	42,290		$	45,604

12. Federal Income Taxes

The components of the provision for federal income taxes were as follows (in thousands):

	Years Ended December 31,
	2011		2010			2009
Current tax expense (benefit)	$	58,481	$	(179,053	)	$	(227,312	)
Deferred tax expense		217,754		355,790			409,848
Federal income tax expense	$	276,235	$	176,737		$	182,536

The federal income tax provisions differ from the amounts determined by multiplying pretax income attributable to Jackson by the statutory federal income tax rate of 35% as follows (in thousands):

	Years Ended December 31,
	2011			2010			2009
Income taxes at statutory rate	$	339,130		$	236,308		$	213,748
Dividends received deduction		(59,136	)		(56,390	)		(27,331	)
Other		(3,759	)		(3,181	)		(3,881	)
Federal income tax expense	$	276,235		$	176,737		$	182,536

Effective tax rate		28.5	%		26.2	%		29.9	%

Jackson National Life Insurance Company and Subsidiaries

Notes to Consolidated Financial Statements

December 31, 2011

Federal income taxes paid (recovered) were $170.0 million, $(517.8) million and $(48.6) million in 2011, 2010 and 2009, respectively. The 2010 tax recovery included $287.7 million due to Internal Revenue Service guidance issued in March 2010 related to the adoption of new statutory reserving requirements for variable annuities in 2009. This new tax guidance required that the tax reserve decrease recognized upon implementation of the transition to the new reserving methodology be amortized over 10 years. Approximately $822.1 million of the additional tax reserve deduction was available to carryback and offset the prior year’s taxable income. For GAAP, this guidance resulted in a current tax recoverable, offset by a decrease in a deferred tax asset, with no impact on total tax expense.

The tax effects of significant temporary differences that gave rise to deferred tax assets and liabilities were as follows (in thousands):

	December 31,
	2011			2010
Gross deferred tax asset
Difference between financial reporting and the tax basis of:
Policy reserves and other insurance items	$	1,846,024		$	1,394,786
Other-than-temporary impairments and other investment items		122,244			238,777
Deferred compensation		44,956			41,498
Other, net		66,473			141,830
Total gross deferred tax asset		2,079,697			1,816,891

Gross deferred tax liability
Difference between financial reporting and the tax basis of:
Deferred acquisition costs and sales inducements		(1,948,928	)		(1,796,823	)
Other investment items		(246,482	)		(36,419	)
Other assets		(22,314	)		(96,579	)
Net unrealized gains on available for sale securities		(1,001,325	)		(543,647	)
Total gross deferred tax liability		(3,219,049	)		(2,473,468	)

Net deferred tax liability	$	(1,139,352	)	$	(656,577	)

Realization of Jackson’s deferred tax assets is dependent on generating sufficient taxable income. Although realization is not assured, management believes that it is more likely than not that the results of future operations and investment activity will generate sufficient taxable income to realize gross deferred tax assets.

At December 31, 2011, the Company had no federal tax ordinary loss or federal tax capital loss carryforwards.

Jackson National Life Insurance Company and Subsidiaries

Notes to Consolidated Financial Statements

December 31, 2011

In August 2007, the Internal Revenue Service (“IRS”) issued Revenue Ruling 2007-54 that would have changed accepted industry and IRS interpretations of the statutes governing the computation of the Dividends Received Deduction ("DRD") on separate account assets held in connection with variable annuity and life contracts, but that ruling was suspended by Revenue Ruling 2007-61. Revenue Ruling 2007-61 also announced the Treasury Department's and the IRS's intention to issue regulations with respect to certain computational aspects of the DRD on separate account assets held in connection with variable contracts. Any regulations that the IRS ultimately proposes for issuance in this area will be subject to public notice and comment, at which time insurance companies and other interested parties will have the opportunity to raise legal and practical questions about the content, scope and application of such regulations. Although regulations that represent a substantial change in an interpretation of the law are generally given a prospective effective date, there is no assurance that the change will not be retrospectively applied. As a result, depending on the ultimate timing and substance of any such regulations, which are unknown at this time, such future regulations could result in the elimination of some or all of the separate account DRD tax benefit that the Company receives. In January 2010, Jackson received a formal Notice of Assessment from the IRS disallowing the separate account DRD for 2003, 2005 and 2006. Jackson did not agree with the assessment and filed a protest with the Appellate Division of the IRS. No reserve has been established for this potential exposure since Jackson believes its position is sustainable. The Company recognized an income tax benefit related to the separate account DRD of $59.1 million, $56.4 million and $27.3 million during 2011, 2010 and 2009, respectively.

During 2011, Jackson established a reserve for an unrecognized tax benefit as required for income tax uncertainties. The following table summarizes the changes in the Company’s unrecognized tax benefits, for the year ended December 31, 2011 (in thousands). There were no unrecognized tax benefits at December 31, 2010.

Unrecognized tax benefit at December 31, 2010	$	-
Additions for tax positions identified in 2011		45,065
Reduction of tax positions of closed prior years		-
Unrecognized tax benefit at December 31, 2011	$	45,065

The Company has considered both permanent and temporary positions in determining the unrecognized tax benefit rollforward. The total amount of unrecognized benefits represent tax positions for which there is uncertainty about the timing of certain deductions. The timing of such deductions would not affect the annual effective tax rate, excluding the impact of interest and penalties.

Interest totaling $10.4 million related to these unrecognized tax benefits has been included in income tax expense in the consolidated income statement for 2011. The Company has not recorded any amounts for penalties related to unrecognized tax benefits during 2011, 2010 or 2009.

Based on information available as of December 31, 2011, the Company believes that, in the next 12 months, there are no positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly increase or decrease. The Company is generally no longer subject to United States federal, state or local income tax examinations by taxing authorities for tax years prior to 2007.

13.	Commitments and Contingencies

The Company and its subsidiaries are involved in litigation arising in the ordinary course of business. It is the opinion of management that the ultimate disposition of such litigation will not have a material adverse affect on the Company's financial condition or results of operations. Jackson has been named in civil litigation proceedings, which appear to be substantially similar to other class action litigation brought against many life insurers including a modal premium case and allegations of misconduct in the sale of insurance products. The Company accrues for legal contingencies once the contingency is deemed to be probable and estimable. At December 31, 2011 and 2010, Jackson recorded accruals totaling $19.9 million and $29.0 million, respectively.

Jackson National Life Insurance Company and Subsidiaries

Notes to Consolidated Financial Statements

December 31, 2011

State guaranty funds provide payments for policyholders of insolvent life insurance companies. These guaranty funds are financed by assessing solvent insurance companies based on location, volume and types of business. The Company estimated its reserve for future state guaranty fund assessments based on data received from the National Organization of Life and Health Insurance Guaranty Associations. Based on data received, the Company’s reserve for future state guaranty fund assessments was $26.6 million and $24.9 million at the end of 2011 and 2010, respectively. Related premium tax offsets were $15.3 million and $14.6 million at December 31, 2011 and 2010, respectively. While Jackson cannot predict the amount and timing of any future assessments, the Company believes the reserve is adequate for all anticipated payments for known insolvencies.

At December 31, 2011, the Company had unfunded commitments related to its investments in limited partnerships and limited liability companies totaling $529.8 million. At December 31, 2011, unfunded fixed-rate commercial mortgage loan commitments totaled $119.3 million.

The Company has received industry-wide regulatory inquiries with respect to claims settlement practices and compliance with unclaimed property laws. To date, only one state has requested a formal search for potential unreported claims. Any regulatory audits, related examination activity and internal reviews may result in additional payments to beneficiaries, escheatment of funds deemed abandoned under state laws, administrative penalties and changes in the Company’s procedures for the identification of unreported claims and handling of escheatable property. Based on its current analysis, at December 31, 2011, the Company accrued $25.0 million for these unreported claims. Additionally, regulators and state legislators are considering proposals that would require life insurance companies to take additional steps to identify unreported deceased policy and contract holders. Currently, there does not appear to be a consensus among state insurance regulators and state unclaimed property administrators regarding a life insurer’s obligations in connection with identifying unreported deaths of its policy and contract holders.

The Company leases office space, land and equipment under several operating leases that expire at various dates through 2051. Certain leases include escalating lease rates, lease abatements and other incentives and, as a result, at December 31, 2011, Jackson recorded a liability of $13.0 million for future lease payments. Lease expense was $25.2 million, $22.3 million and $20.6 million in 2011, 2010 and 2009, respectively. At December 31, 2011, future minimum payments under these noncancellable operating leases were as follows (in thousands):

2012	$	23,087
2013		20,880
2014		14,229
2015		11,644
2016		11,248
Thereafter		20,501
Total	$	101,589

14.	Statutory Accounting Capital and Surplus

Under Michigan Insurance Law, dividends on capital stock can only be distributed out of earned surplus, adjusted to exclude any unrealized capital gains and the effect of permitted practices, unless the Commissioner approves the dividend prior to payment. At December 31, 2011, the adjusted earned surplus of Jackson National Life Insurance Company was $595.6 million. Furthermore, without the prior approval of the Commissioner, dividends are also subject to restrictions relating to statutory surplus and/or statutory earnings. The maximum dividend which can be paid in 2012, subject to the availability of earned surplus, without prior approval of the Commissioner is $410.6 million.

The Company received capital contributions from its parent of $19.4 million, $150.1 million and $592.4 million in 2011, 2010 and 2009, respectively. The capital contributions included $19.4 million, $20.1 million and $21.4 million in 2011, 2010 and 2009, respectively, from Brooke Life’s forgiveness of intercompany tax liabilities. Dividend payments from the Company to its parent were $530.0 million, $275.0 million and $250.0 million in 2011, 2010 and 2009, respectively.

Jackson National Life Insurance Company and Subsidiaries

Notes to Consolidated Financial Statements

December 31, 2011

Statutory capital and surplus of the Company, as reported in its Annual Statement, was $3.6 billion and $4.4 billion at December 31, 2011 and 2010, respectively. Statutory net income (loss) of the Company, as reported in its Annual Statement, was $(591.1) million, $769.6 million and $373.6 million in 2011, 2010 and 2009, respectively.

The Commissioner has granted Jackson a permitted practice that allows Jackson to carry interest rate swaps at book value, as if statutory hedge accounting were in place, instead of at fair value as would have been otherwise required. Jackson is required to demonstrate the effectiveness of its interest rate swap program pursuant to the Michigan Insurance Code. This permitted practice expires on October 1, 2012. At December 31, 2011, the effect of the permitted practice decreased statutory surplus by $474.4 million, net of tax. Statutory surplus increased by $130.3 million at December 31, 2010 due to the effect of the permitted practice. The permitted practice had no impact on statutory net income.

15.	Other Related Party Transactions

The Company's investment portfolio is managed by PPM America, Inc. (“PPMA”), a registered investment advisor, and PPM Finance, Inc. (collectively, “PPM”). PPM is ultimately a wholly owned subsidiary of Prudential. The Company paid $36.6 million, $37.2 million and $36.8 million to PPM for investment advisory services during 2011, 2010 and 2009, respectively.

National Planning Holdings, Inc. (“NPH”), Jackson’s affiliated broker-dealer network, distributes products issued by Jackson and receives commissions and fees from Jackson. Commissions and fees paid by Jackson to NPH during 2011, 2010 and 2009 totaled $94.7 million, $85.7 million and $76.7 million, respectively.

Jackson has entered into shared services administrative agreements with both, NPH and PPMA. Under the shared services administrative agreements, Jackson charged $8.5 million, $6.2 million and $4.5 million of certain management and corporate services costs to these affiliates in 2011, 2010 and 2009, respectively.

Jackson provides a $25.0 million revolving credit facility to Nicole Finance, Inc., an upstream holding company. The loan, executed in 2011, is unsecured, matures in December 2016, accrues interest at 1.27% per annum and has a commitment fee of 0.10% per annum. There was $14.7 million outstanding at December 31, 2011. The highest outstanding loan balance during 2011 was $14.7 million. Interest and commitment fees totaled $9 thousand during 2011.

Jackson provides a $40.0 million revolving credit facility to PPMA. The loan is unsecured, matures in September 2013, accrues interest at LIBOR plus 2% per annum and has a commitment fee of 0.25% per annum. There was no balance outstanding at December 31, 2011 or 2010. The highest outstanding loan balance during 2011 and 2010 was nil and $21.0 million, respectively. During 2011, 2010 and 2009, interest and commitment fees totaled $0.1 million, $0.2 million and $0.1 million, respectively.

Jackson provides a $20.0 million revolving credit facility to Brooke Holdings, LLC, an upstream holding company. The loan is unsecured, matures in June 2014, accrues interest at LIBOR plus 2% per annum and has a commitment fee of 0.25% per annum. There was no outstanding balance at December 31, 2011. There was $7.0 million outstanding at December 31, 2010. The highest outstanding loan balance during both 2011 and 2010 was $7.0 million. Interest and commitment fees totaled $0.2 million, $0.1 million and $35 thousand during 2011, 2010 and 2009, respectively.

Jackson provides, through its PGDS subsidiary, information technology services to certain Prudential affiliates. Jackson recognized $21.1 million, $20.1 million and $19.2 million of revenue associated with these services during 2011, 2010 and 2009, respectively. This revenue is included in other income in the accompanying consolidated income statement. This revenue is substantially equal to the costs incurred by PGDS to provide the services, which are reported in general and administrative expenses in the consolidated income statements.

Jackson National Life Insurance Company and Subsidiaries

Notes to Consolidated Financial Statements

December 31, 2011

16.	Benefit Plans

The Company has a defined contribution retirement plan covering substantially all employees and certain affiliates. To be eligible to participate in the Company’s contribution, an employee must have attained the age of 21, completed at least 1,000 hours of service in a 12-month period and passed their 12-month employment anniversary. In addition, the employee must be employed on the applicable January 1 or July 1 entry date. The Company's annual contributions, as declared by the board of directors, are based on a percentage of eligible compensation paid to participating employees during the year. In addition, the Company matches a participant’s elective contribution, up to 6 percent of eligible compensation, to the plan during the year. The Company’s expense related to this plan was $18.0 million, $17.4 million and $16.3 million in 2011, 2010 and 2009, respectively, comprised solely of the Company’s annual contributions to the plan.

The Company maintains non-qualified voluntary deferred compensation plans for certain agents and employees. At December 31, 2011 and 2010, the liability for such plans totaled $121.5 million and $119.2 million, respectively, and is reported in other liabilities. Jackson invests general account assets in selected mutual funds in amounts similar to participant elections as a hedge against significant movement in the payout liability. The Company’s expense related to these plans, including a match of elective deferrals for the agents’ deferred compensation plan, was $(1.7) million, $22.5 million and $34.8 million in 2011, 2010 and 2009, respectively. Investment income from the mutual funds totaled $(3.7) million, $15.7 million and $27.6 million in 2011, 2010 and 2009, respectively.

17.	Subsequent Event

In February 2012, Brooke Life received a Notice of Proposed Adjustment from the IRS, regarding an assessment related to its tax treatment of interest expense on intercompany debt. Due to the intercompany tax sharing agreement, the effect of an adjustment, if any, would impact Jackson’s total stockholder’s equity. The total aggregate exposure to the Company’s stockholder’s equity is approximately $130.0 million. Brooke Life does not agree with the assessment, believes its current position is sustainable and intends to file a protest with the IRS once it receives the official report, which is expected to be issued in late March.

PART C

OTHER INFORMATION

Item 24. Financial Statements and Exhibits

(a) Financial Statements:

(1) Financial statements and schedules included in Part A:

Not Applicable.

(2) Financial statements and schedules included in Part B -

Jackson National Separate Account - I:

Independent Auditors’ Report

Statements of Assets and Liabilities as of December 31, 2011

Statements of Operations for the period ended December 31, 2011

Statements of Changes in Net Assets for the periods ended December 31, 2011 and 2010

Notes to Financial Statements

Jackson National Life Insurance Company:

Report of Independent Registered Public Accounting Firm

Consolidated Balance Sheets as of December 31, 2011 and 2010

Consolidated Income Statements for the years ended December 31, 2011, 2010, and 2009

Consolidated Statements of Stockholder's Equity and Comprehensive Income for the years ended

December 31, 2011, 2010, and 2009

Consolidated Statements of Cash Flows for the years ended December 31, 2011, 2010, and 2009

Notes to Consolidated Financial Statements

(b) Exhibits

Exhibit Description

No.

1.	Resolution of Depositor's Board of Directors authorizing the establishment of the Registrant, incorporated herein by reference to the Registrant's Post-Effective Amendment No. 9 filed on April 21, 1999 (File Nos. 033-82080 and 811-08664).

2.	Not Applicable.

a.	Amended and Restated General Distributor Agreement dated June 1, 2006, incorporated herein by reference to the Registrant's Registration Statement filed on August 10, 2006 (File Nos. 333-136472 and 811-08664).

b.	Selling Agreement between Jackson National Life Insurance Company and Jackson National Life Distributors, LLC (V2565 01/12), incorporated herein by reference to Registrant’s Pre-Effective Amendment No. 1, filed on April 24, 2012 (File Nos. 333-178774 and 811-08664).

a.	Specimen of the Curiangard Simplified Retirement Annuity Fixed and Variable Annuity Contract, incorporated herein by reference to the Registrant's Registration Statement filed on August 10, 2006 (File Nos. 333-136472 and 811-08664).

b.	Specimen of Tax Sheltered Annuity Endorsement, incorporated herein by reference to the Registrant's Pre-Effective Amendment No. 1 filed on December 19, 2001 (File Nos. 333-70472 and 811-08664).

c.	Specimen of Retirement Plan Endorsement, incorporated herein by reference to the Registrant's Pre-Effective Amendment No. 1 filed on December 19, 2001 (File Nos. 333-70472 and 811-08664).

d.	Specimen of Individual Retirement Annuity Endorsement, incorporated herein by reference to the Registrant's Pre-Effective Amendment No. 1 filed on December 19, 2001 (File Nos. 333-70472 and 811-08664).

e.	Specimen of Roth IRA Endorsement, incorporated herein by reference to the Registrant's Pre-Effective Amendment No. 1 filed on December 19, 2001 (File Nos. 333-70472 and 811-08664).

f.	Specimen of Charitable Remainder Trust Endorsement, incorporated herein by reference to the Registrant's Pre-Effective Amendment filed on December 23, 2004 (File Nos. 333-118368 and 811-08664).

g.	Specimen of the Return of Premium Death Benefit Endorsement, incorporated herein by reference to the Registrant's Registration Statement filed on September 30, 2004 (File Nos. 333-119427 and 811-08664).

h.	Specimen of 5% Guaranteed Minimum Withdrawal Benefit With Annual Step-up Endorsement, incorporated herein by reference to the Registrant's Post-Effective Amendment No. 17 filed on June 20, 2005 (File Nos. 333-70472 and 811-08664).

i.	Specimen of 5% For Life Guaranteed Minimum Withdrawal Benefit with Annual Step-Up, incorporated herein by reference to the Registrant's Post-Effective Amendment No. 24 filed on January 31, 2006 (File Nos. 333-70472 and 811-08664).

j.	Specimen of Joint 5% for Life Guaranteed Minimum Withdrawal Benefit with Annual Step-Up, incorporated herein by reference to the Registrant's Post-Effective Amendment No. 26 filed on June 23, 2006 (File Nos. 333-70472 and 811-08664).

k.	Specimen of the Highest Anniversary Value Endorsement, incorporated herein by reference to the Registrant's Registration Statement filed on August 10, 2006 (File Nos. 333-136472 and 811-08664).

a.	Form of the Curiangard Simplified Retirement Annuity Fixed and Variable Annuity Application, incorporated herein by reference to the Registrant's Pre-Effective Amendment No. 1filed on December 15, 2006 (File Nos. 333-136472 and 811-08664).

b.	Form of the Curiangard Simplified Retirement Annuity Fixed and Variable Annuity Application, incorporated herein by reference to the Registrant’s Post-Effective Amendment No. 2, filed on April 25, 2007 (File Nos. 333-136472 and 811-08664).

c.	Form of the Curiangard Simplified Retirement Annuity Fixed and Variable Annuity Application, incorporated herein by reference to the Registrant’s Post-Effective Amendment No. 3, filed on November 27, 2007 (File Nos. 333-136472 and 811-08664).

a.	Articles of Incorporation of Depositor, incorporated herein by reference to the Registrant's Post-Effective Amendment No. 3 filed on April 30, 1996 (File Nos. 033-82080 and 811-08664).

b.	By-laws of Depositor, incorporated herein by reference to the Registrant's Post-Effective Amendment No. 3 filed on April 30, 1996 (File Nos. 033-82080 and 811-08664).

7. Not Applicable.

8. Not Applicable.

9 Opinion and Consent of Counsel, attached hereto.

10. Consent of Independent Registered Public Accounting Firm, attached hereto.

11 Not Applicable.

12. Not Applicable.

Item 25. Directors and Officers of the Depositor

Name and Principal Business Address	Positions and Offices with Depositor

Richard D. Ash	Vice President - Actuary & Appointed Actuary
1 Corporate Way
Lansing, MI 48951

Steve P. Binioris	Vice President
1 Corporate Way
Lansing, MI 48951

Dennis Blue	Vice President
1 Corporate Way
Lansing, MI 48951

Barrett Bonemer	Vice President
1 Corporate Way
Lansing, MI 48951

Jeff Borton	Vice President
1 Corporate Way
Lansing, MI 48951

John H. Brown	Vice President
1 Corporate Way
Lansing, MI 48951

James Carter	Vice President
1 Corporate Way
Lansing, MI 48951

Joseph Mark Clark	Senior Vice President & Chief Information Officer
1 Corporate Way
Lansing, MI 48951

Michael A. Costello	Vice President and Treasurer
1 Corporate Way
Lansing, MI 48951

James B. Croom	Vice President
1 Corporate Way
Lansing, MI 48951

Lisa C. Drake	Senior Vice President & Chief Actuary
1 Corporate Way
Lansing, MI 48951

Phillip Brian Eaves	Vice President
1 Corporate Way
Lansing, MI 48951

Charles F. Field, Jr.	Vice President
300 Innovation Drive
Franklin, TN 37067

Dana R. Malesky Flegler	Vice President
1 Corporate Way
Lansing, MI 48951

Robert A. Fritts	Senior Vice President & Controller
1 Corporate Way
Lansing, MI 48951

James D. Garrison	Vice President
1 Corporate Way
Lansing, MI 48951

Julia A. Goatley	Vice President & Assistant Secretary
1 Corporate Way
Lansing, MI 48951

Matthew Phillip Gonring	Vice President
300 Innovation Drive
Franklin, TN 37067

John A. Gorgenson, Jr.	Vice President
1 Corporate Way
Lansing, MI 48951

Robert W. Hajdu	Vice President
1 Corporate Way
Lansing, MI 48951

Cliff S. Hale, M.D.	Vice President
1 Corporate Way
Lansing, MI 48951

Laura L. Hanson	Vice President
1 Corporate Way
Lansing, MI 48951

H. Dean Hosfield	Vice President
1 Corporate Way
Lansing, MI 48951

Clifford J. Jack	Executive Vice President & Director
7601 Technology Way
Denver, CO 80237

Scott Klus	Vice President
1 Corporate Way
Lansing, MI 48951

Leandra R. Knes	Director
225 W. Wacker Drive
Suite 1200
Chicago, IL 60606

Everett W. Kunzelman	Vice President
1 Corporate Way
Lansing, MI 48951

Lynn W. Lopes	Vice President
1 Corporate Way
Lansing, MI 48951

Machelle A. McAdory	Senior Vice President
1 Corporate Way
Lansing, MI 48951

Diahn McHenry	Vice President
1 Corporate Way
Lansing, MI 48951

Thomas J. Meyer	Senior Vice President,
1 Corporate Way	General Counsel & Secretary
Lansing, MI 48951

Dean M. Miller	Vice President
1 Corporate Way
Lansing, MI 48951

Keith R. Moore	Senior Vice President
1 Corporate Way
Lansing, MI 48951

Jacky Morin	Vice President
1 Corporate Way
Lansing, MI 48951

P. Chad Myers	Executive Vice President, Chief Financial Officer & Director
1 Corporate Way
Lansing, MI 48951

Russell E. Peck	Vice President
1 Corporate Way
Lansing, MI 48951

Laura L. Prieskorn	Senior Vice President & Chief Administration Officer
1 Corporate Way
Lansing, Michigan 48951

Dana S. Rapier	Vice President
1 Corporate Way
Lansing, MI 48951

William R. Schulz	Vice President
1 Corporate Way
Lansing, MI 48951

Muhammad S. Shami	Vice President
1 Corporate Way
Lansing, MI 48951

Kathleen M. Smith	Vice President
1 Corporate Way
Lansing, MI 48951

James R. Sopha	Chief Operating Officer & Director
1 Corporate Way
Lansing, MI 48951

Kenneth H. Stewart	Senior Vice President
1 Corporate Way
Lansing, MI 48951

Heather R. Strang	Vice President
1 Corporate Way
Lansing, MI 48951

Marcia L. Wadsten	Vice President
1 Corporate Way
Lansing, MI 48951

Michael A. Wells	President, Chief Executive Officer & Chairman
300 Innovation Drive
Franklin, TN 37067

Item 26. Persons Controlled by or Under Common Control with the Depositor or Registrant.

Company	State of Organization	Control/Ownership
Ascent Insurance Brokers Limited	United Kingdom	50% Prudential Property Investment Managers Limited
BOCI – Prudential Asset Management Limited	Hong Kong	36% Prudential Corporation Holdings Limited
BOCI – Prudential Trustee Limited	Hong Kong	36% Prudential Corporation Holdings Limited
Brooke LLC	Delaware	100% Prudential (US Holdco2) Limited
Brooke (Holdco 1) Inc.	Delaware	100% Prudential (US Holdco 3) BV
Brooke Holdings LLC	Delaware	100% Nicole Finance Inc.
Brooke Holdings (UK) Limited	United Kingdom	100% Brooke UK LLC
Brooke Investment, Inc.	Delaware	100% Brooke Holdings LLC
Brooke (Jersey) Limited	Jersey	100% Prudential (US Holdco 2) Limited
Brooke Life Insurance Company	Michigan	100% Brooke Holdings LLC
Brooke UK LLC	Delaware	100% Brooke (Holdco 1) Inc.
Buying Force Limited	United Kingdom	50% Prudential Property Investment Managers Limited
CIMPL Pty Limited	Australia	100% PPM Capital (Holdings) Limited
CITIC Prudential Life Insurance Company Limited	China	50% Prudential Corporation Holdings Limited
CITIC – Prudential Fund Management Company Limited	China	49% Prudential Corporation Holdings Limited
CSU One Limited	United Kingdom	100% Prudential Group Holdings Limited
Calvin Asset Management Limited	England	100% Calvin Capital Limited
Calvin Capital Limited (formerly Marlin Acquisitions Limited)	England	100% Marlin Acquisitions Holdings Limited
Canada Property (Trustee) No 1 Limited	Jersey	100% Canada Property Holdings Limited
Canada Property Holdings Limited	England	100% M&G Limited
Curian Capital, LLC	Michigan	100% Jackson National Life Insurance Company
Curian Clearing LLC	Michigan	100% Jackson National Life Insurance Company
Earth and Wind Energias Removables, S.L.	Spain	100% Infracapital E&W B.V.
Eastspring Investments (Hong Kong) Limited	Hong Kong	100% Prudential Corporations Holdings Limited
Eastspring Investments (UK) Limited	England	100% Prudential Corporations Holdings Limited
FA II Limited	England	100% FA III Limited
FA III Limited	England	100% Infracapital Nominees Limited
Falcon Acquisitions Limited	United Kingdom	100% FA II Limited
Falcon Acquisitions Holdings Limited	United Kingdom	100% Infracapital Nominees Limited
First Dakota, Inc.	North Dakota	100% IFC Holdings, Inc.
First Dakota of Montana, Inc.	Montana	100% IFC Holdings, Inc.
First Dakota of New Mexico, Inc.	New Mexico	100% IFC Holdings, Inc.
First Dakota of Texas, Inc.	Texas	100% IFC Holdings, Inc.
First Dakota of Wyoming, Inc.	Wyoming	100% IFC Holdings, Inc.
Furnival Insurance Company Limited	Guernsey	100% Prudential Corporation Holdings Limited
GS Twenty Two Limited	United Kingdom	100% Prudential Group Holdings Limited
Geoffrey Snushall Limited	United Kingdom	100% Snushalls Team Limited
Giang Vo Development JV Company	Vietnam	65% Prudential Vietnam Assurance Private Limited
Hermitage Management, LLC	Michigan	100% Jackson National Life Company Insurance
Holborn Bars Nominees Limited	United Kingdom	100% M&G Investment Management Limited
Holborn Delaware LLC	Delaware	100% Prudential Four Limited
Holborn Finance Holding Company	United Kingdom	100% Prudential Securities Limited
Hyde Holdco 1 Limited	United Kingdom	100% Prudential Corporation Holdings Limited
Hyde Holdco 3 Limited	United Kingdom	100% Prudential Capital Holding Company Limited
ICICI Prudential Asset Management Company Limited	India	49% Prudential Corporation Holdings Limited
ICICI Prudential Life Insurance Company Limited	India	25.96% Prudential Corporation Holdings Limited
ICICI Prudential Pension Funds Management Company Ltd.	India	100% ICICI Prudential Life Insurance Company Limited
ICICI Prudential Trust Limited	India	49% Prudential Corporation Holdings Limited
IFC Holdings, Inc. d/b/a INVEST Financial Corporation	Delaware	100% National Planning Holdings Inc.
INVEST Financial Corporation Insurance Agency Inc. of Alabama	Alabama	100% INVEST Financial Corporation Insurance Agency, Inc. of Delaware
INVEST Financial Corporation Insurance Agency Inc. of Connecticut	Connecticut	100% INVEST Financial Corporation Insurance Agency, Inc. of Delaware
INVEST Financial Corporation Insurance Agency Inc. of Delaware	Delaware	100% IFC Holdings, Inc. d/b/a INVEST Financial Corporation
INVEST Financial Corporation Insurance Agency Inc. of Georgia	Georgia	100% INVEST Financial Corporation Insurance Agency Inc. of Delaware
INVEST Financial Corporation Insurance Agency Inc. of Illinois	Illinois	100% INVEST Financial Corporation Insurance Agency Inc. of Delaware
INVEST Financial Corporation Insurance Agency Inc. of Maryland	Maryland	100% INVEST Financial Corporation Insurance Agency Inc. of Delaware
INVEST Financial Corporation Insurance Agency Inc. of Massachusetts	Massachusetts	100% INVEST Financial Corporation Insurance Agency Inc. of Delaware
INVEST Financial Corporation Insurance Agency Inc. of Montana	Montana	100% INVEST Financial Corporation Insurance Agency Inc. of Delaware
INVEST Financial Corporation Insurance Agency Inc. of Nevada	Nevada	100% INVEST Financial Corporation Insurance Agency Inc. of Delaware
INVEST Financial Corporation Insurance Agency Inc. of New Mexico	New Mexico	100% INVEST Financial Corporation Insurance Agency Inc. of Delaware
INVEST Financial Corporation Insurance Agency Inc. of Ohio	Ohio	100% INVEST Financial Corporation Insurance Agency Inc. of Delaware
INVEST Financial Corporation Insurance Agency Inc. of Oklahoma	Oklahoma	100% INVEST Financial Corporation Insurance Agency Inc. of Delaware
INVEST Financial Corporation Insurance Agency Inc. of South Carolina	South Carolina	100% INVEST Financial Corporation Insurance Agency Inc. of Delaware
INVEST Financial Corporation Insurance Agency Inc. of Texas	Texas	100% INVEST Financial Corporation Insurance Agency Inc. of Delaware
INVEST Financial Corporation Insurance Agency Inc. of Wyoming	Wyoming	100% INVEST Financial Corporation Insurance Agency Inc. of Delaware
INVEST Financial Corporation Insurance Agency PA of Mississippi	Mississippi	100% INVEST Financial Corporation Insurance Agency Inc. of Delaware
Infracapital CI II Limited	Scotland	100% M&G Limited
Infracapital EF II Limited	Scotland	100% M&G Limited
Infracapital E&W B.V.	Netherlands	100% Infracapital F1 S.a.r.l.
Infracapital Employee Feeder GP Limited	Scotland	100% M&G Limited
Infracapital GP II Limited	England	100% M&G Limited
Infracapital F1 S.a.r.l.	Luxembourg	100% Infracapital F1 Holdings S.a.r.l
Infracapital F1 Holdings S.a.r.l.	Luxembourg	100% Infracapital Nominees Limited
Infracapital GP Limited	United Kingdom	100% M&G Limited
Infracapital Nominees Limited	United Kingdom	100% M&G Limited
Infracapital SLP Limited	United Kingdom	100% M&G Limited
Innisfree M&G PPP LLP	United Kingdom	35% M&G IMPPP1 Limited
Investment Centers of America, Inc.	North Dakota	100% IFC Holdings, Inc.
Jackson Investment Management LLC	Michigan	100% Brooke Holdings LLC
Jackson National Asset Management, LLC	Michigan	100% Jackson National Life Insurance Company
Jackson National Life (Bermuda) Ltd.	Bermuda	100% Jackson National Life Insurance Company
Jackson National Life Distributors LLC	Delaware	100% Jackson National Life Insurance Company
Jackson National Life Insurance Company of New York	New York	100% Jackson National Life Insurance Company
JNLI LLC	Delaware	100% Jackson National Life Insurance Company
JNL Southeast Agency, LLC	Michigan	100% Jackson National Life Insurance Company
M&G (Guernsey) Limited	Guernsey	100% M&G Limited
M&G Financial Services Limited	United Kingdom	100% M&G Limited
M&G Founders 1 Limited	United Kingdom	100% M&G Limited
M&G General Partner Inc.	Cayman Islands	100% M&G Limited
M&G Group Limited	United Kingdom	100% Prudential plc
M&G IMPPP 1 Limited	United Kingdom	100% M&G Limited
M&G International Investments Limited	United Kingdom	100% M&G Limited
M&G International Investments Limited	France (Representative Bureau)	100% M&G International Investments Limited
M&G International Investments Limited	Germany (Branch only)	100% M&G International Investments Limited
M&G International Investments Limited	Italy (Branch only)	100% M&G International Investments Limited
M&G International Investments Limited	Spain (Representative Bureau)	100% M&G International Investments Limited
M&G International Investments Nominees Limited	United Kingdom	100% M&G International Investments Limited
M&G Investment Management Limited	United Kingdom	100% M&G Limited
M&G Life Assurance Company Limited	United Kingdom	100% M&G Limited
M&G Limited	United Kingdom	100% M&G Group Limited
M&G Management Services Limited	United Kingdom	100% M&G Limited
M&G Nominees Limited	United Kingdom	100% M&G Limited
M&G Pensions and Annuity Company Limited	United Kingdom	100% M&G Limited
M&G RED Employee Feeder GP Limited	Scotland	100% M&G Limited
M&G RED GP Limited	Guernsey	100% M&G Limited
M&G RED SLP GP Limited	Scotland	100% M&G Limited
M&G Real Estate Finance 1 Co S.a.r.l	Luxemborg	100% M&G RED GP Limited
M&G Securities Limited	United Kingdom	100% M&G Limited
M&G Support Services Limited	United Kingdom	100% M&G Limited
MM&S (2375) Limited	Scotland	100% The Prudential Assurance Company Limited
Marlin Acquisitions Holdings Limited	United Kingdom	100% Infracapital GP Limited
National Planning Corporation	Delaware	100% National Planning Holdings, Inc.
National Planning Corporation Insurance Agency Inc. of Nevada	Nevada	100% National Planning Corporation
National Planning Holdings, Inc.	Delaware	100% Brooke Holdings LLC
National Planning Insurance Agency Inc.	Alabama	100% National Planning Corporation
National Planning Insurance Agency Inc.	Florida	100% National Planning Corporation
National Planning Insurance Agency Inc.	Georgia	100% National Planning Corporation
National Planning Insurance Agency Inc.	Idaho	100% National Planning Corporation
National Planning Insurance Agency Inc.	Massachusetts	100% National Planning Corporation
National Planning Insurance Agency Inc.	Montana	100% National Planning Corporation
National Planning Insurance Agency Inc.	Oklahoma	100% National Planning Corporation
National Planning Insurance Agency Inc.	Texas	100% National Planning Corporation
National Planning Insurance Agency Inc.	Wyoming	100% National Planning Corporation
Nicole Finance Inc.	Delaware	100% Brooke UK LLC
North Sathorn Holdings Company Limited	Thailand	100% Prudential Corporation Holdings Limited
Nova Sepadu Sdn Bhd	Malaysia	96% Sri Han Suria Sdn Berhad
P&A Holdco Limited	England	100% Prudential Four Limited
P&A Opco Limited	England	100% P&A Holdco Limited
PCA Asset Management Limited	Japan	100% Prudential Corporation Holdings Limited
PCA Asset Management Co. Ltd.	Korea	100% Prudential Corporation Holdings Limited
PCA Life Assurance Company Limited	Taiwan	99.79% Prudential Corporation Holdings Limited
PCA Life Insurance Company Limited (Japan)	Japan	100% Prudential Corporation Holdings Limited
PCA Life Insurance Company Limited (Korea)	Korea	100% Prudential Corporation Holdings Limited
PCA Securities Investment Trust Company Limited	Taiwan	99.54% Prudential Corporation Holdings Limited
PGDS (UK One) Limited	United Kingdom	100% Prudential Group Holdings Limited
PGDS (UK Two) Limited	United Kingdom	100% PDGS (UK One) Limited
PGDS (US One) LLC	Delaware	100% Jackson National Life Insurance Company
PPEM Pte. Limited	Singapore	100% Prudential Singapore Holdings Pte Limited
PPM America, Inc.	Delaware	100% PPM Holdings, Inc.
PPM Capital (Holdings) Limited	United Kingdom	100% M&G Limited
PPM Finance, Inc.	Delaware	100% PPM Holdings, Inc.
PPM Holdings, Inc.	Delaware	100% Brooke Holdings LLC
PPM Ventures (Asia) Limited	Hong Kong	100% PPM Capital (Holdings) Limited
PPM Ventures Pty Limited	Australia	100% CIMPL Pty Limited
PPMC First Nominees Limited	United Kingdom	100% M&G Limited
PPS Five Limited	United Kingdom	100% Reeds Rains Prudential Limited
PPS Nine Limited	United Kingdom	100% Prudential Property Services Limited
PPS Twelve Limited	United Kingdom	100% Prudential Property Services Limited
PT Paja Indonesia	Indonesia	100% PT Prudential Life Assurance
PT Prudential Asset Management	Indonesia	99% Prudential Asset Management
PT Prudential Life Assurance	Indonesia	94.6% Prudential Corporation Holdings Limited
PVM Partnerships Limited	United Kingdom	100% The Prudential Assurance Company Limited
Pacus (UK) Limited	United Kingdom	100% The Prudential Assurance Company Limited
Park Avenue (Singapore Two) Limited	Gibraltar	100% Prudential Group Holdings Limited
Pru Life Assurance Limited	Singapore	100% Prudential Singapore Holdings Pte Limited
Pru Life Insurance Corporation of UK	Philippines	100% Prudential Corporation Holdings Limited
Pru Pte Limited	Singapore	100% Prudential Singapore Holdings Pte Limited
Prudential (AN) Limited	United Kingdom	100% The Prudential Assurance Company Limited
Prudential (B1) Limited	Gibraltar	100% Prudential (Netherlands) BV
Prudential (B2) Limited	Gibraltar	100% Prudential (Netherlands) BV
Prudential (Gibraltar Five) Limited	Gibraltar	100% Prudential (Gibraltar Four) Limited
Prudential (Gibraltar Four) Limited	Gibraltar	100% Prudential (US Holdco 1) Limited
Prudential (Gibraltar Three)	Gibraltar	100% Prudential (Gibraltar Four) Limited
Prudential (Gibraltar Two) S.a.r.l.	Luxembourg	100% Prudential Capital Holding Company Limited
Prudential (Gibraltar) Limited	Gibraltar	100% Prudential Group Holdings Limited
Prudential (LPH One) Limited	Gibraltar	100% Prudential Group Holdings Limited
Prudential (LPH Two) Limited	Gibraltar	100% Prudential Group Holdings Limited
Prudential (Namibia) Unit Trusts Limited	Namibia	93% Prudential Portfolio Managers (Namibia) (Pty) Limited
Prudential (Netherlands One) Limited	United Kingdom	100% Prudential Group Holdings Limited
Prudential (Netherlands) BV	Netherlands	100% Prudential Corporation Holdings Limited
Prudential (US Holdco 1) BV	Netherlands	100% Prudential (US Holdco 1) Limited
Prudential (US Holdco 1) Limited	United Kingdom	100% Prudential US Limited
Prudential (US Holdco 2) BV	Netherlands	100% Prudential (US Holdco 1) BV
Prudential (US Holdco 2) Limited	Gibraltar	100% Holborn Delaware LLC
Prudential (US Holdco 3) BV	Netherlands	100% Prudential (US Holdco 2) BV
Prudential – AA Office Joint Venture Company	Vietnam	70% Prudential Vietnam Assurance Private Limited
Prudential / M&G UKCF GP Limited	United Kingdom	100% M&G Limited
Prudential Al-Wara’ Asset Management Berhad	Malaysia	100% Prudential Corporation Holdings Limited
Prudential Annuities Limited	United Kingdom	100% The Prudential Assurance Company Limited
Prudential Asset Management (Hong Kong) Limited	Hong Kong	100% Prudential Corporation Holdings Limited
Prudential Asset Management (Singapore) Limited	Singapore	100% Prudential Singapore Holdings Pte Limited
Prudential Asset Management Limited	United Arab Emirates	100% Prudential Corporation Holdings Limited
Prudential Assurance Company Singapore (Pte) Limited	Singapore	100% Prudential Singapore Holdings Pte Limited
Prudential Assurance Malaysia Bhd	Malaysia	100% Sri Han Suria Sdn Berhad
Prudential Assurance Singapore (Property Services) Pte Limited	Singapore	100% Prudential Singapore Holdings Pte Limited
Prudential Atlantic Reinsurance Company Limited	Ireland	100% Prudential Corporation Holdings Limited
Prudential Australia One Limited	United Kingdom	100% Prudential Corporation Holdings Limited
Prudential BSN Takaful Berhad	Malaysia	49% Prudential Corporation Holdings Limited
Prudential Capital (Singapore) Pte. Ltd. Prudential Tower	Singapore	100% Prudential Capital Holding Company Ltd.
Prudential Capital Holding Company Limited	United Kingdom	100% Prudential plc
Prudential Capital PLC	United Kingdom	100% Prudential Capital Holding Company Limited
Prudential Capital Luxembourg S.a.r.l.	Luxembourg	100% Prudential Capital Holding Company Ltd.
Prudential Corporate Pensions Trustee Limited	United Kingdom	100% The Prudential Assurance Company Limited
Prudential Corporation Asia Limited	Hong Kong	100% Prudential Corporation Holdings Limited
Prudential Corporation Australasia Holdings Pty Limited	Australia	100% Prudential Group Holdings Limited
Prudential plc	United Kingdom	Publicly Traded
Prudential Corporation Holdings Limited	United Kingdom	100% Prudential Holdings Limited
Prudential Corporation Limited	United Kingdom	100% Prudential Group Holdings Limited
Prudential Distribution Limited	United Kingdom	100% Prudential Financial Services Limited
Prudential Europe Assurance Holdings plc	Scotland	100% MM&S (2375) Limited
Prudential Finance BV	Netherlands	100% Prudential Corporation Holdings Limited
Prudential Financial Services Limited	United Kingdom	100% Prudential plc
Prudential Five Limited	United Kingdom	100% Prudential Group Holdings Limited
Prudential Four Limited	United Kingdom	100% Prudential Group Holdings Limited
Prudential Fund Management Berhad	Malaysia	100% Nova Sepadu Sdn Bhd
Prudential Fund Management Services Private Limited	Singapore	100% Prudential Singapore Holdings Pte Limited
Prudential GP Limited	Scotland	100% M&G Limited
Prudential General Insurance Hong Kong Limited	Hong Kong	100% The Prudential Assurance Company Limited
Prudential Group Holdings Limited	United Kingdom	100% Prudential plc
Prudential Group Pensions Limited	United Kingdom	100% Prudential Financial Services Limited
Prudential Group Secretarial Services Limited	United Kingdom	100% Prudential Group Holdings Limited
Prudential Health Holdings Limited	United Kingdom	25% The Prudential Assurance Company Limited
Prudential Health Limited	United Kingdom	100% Prudential Health Holdings Limited
Prudential Health Insurance Limited	England	100% Prudential Health Holdings Limited
Prudential Health Services Limited	United Kingdom	100% Prudential Health Holdings Limited
Prudential Holborn Life Limited	United Kingdom	100% The Prudential Assurance Company Limited
Prudential Holdings Limited	Scotland	100% Prudential plc
Prudential Hong Kong Limited	Hong Kong	100% The Prudential Assurance Company Limited
Prudential IP Services Limited	United Kingdom	100% Prudential Group Holdings Limited
Prudential International Assurance plc	Ireland	100% Prudential Europe Assurance Holdings plc
Prudential International Management Services Limited	Ireland	100% Prudential Europe Assurance Holdings plc
Prudential Investments (UK) Limited	United Kingdom	100% Prudential Capital Holding Company
Prudential Jersey (No 2) Limited	Jersey	100% Prudential Corporation Holdings Limited
Prudential Jersey Limited	Jersey	100% Prudential Corporation Holdings Limited
Prudential Lalondes Limited	United Kingdom	100% Prudential Property Services Limited
Prudential Life Assurance (Thailand) Public Company Limited	Thailand	42.59% North Sathorn Holdings Company Limited 32.11% Staple Limited 24.82% Prudential Corporation Holdings Limited 0.48% Others
Prudential Lifetime Mortgages Limited	Scotland	100% The Prudential Assurance Company Limited
Prudential Pensions Limited	United Kingdom	100% The Prudential Assurance Company Limited
Prudential Personal Equity Plans Limited	United Kingdom	100% M&G Limited
Prudential Portfolio Managers (Namibia) (Pty) Limited	Namibia	75% Prudential Portfolio Managers (South Africa) (Pty) Limited
Prudential Portfolio Managers (South Africa) (Pty) Limited	South Africa	75% M&G Limited
Prudential Portfolio Managers (South Africa) Life Limited	South Africa	99.4% Prudential Portfolio Managers (South Africa) (Pty) Limited
Prudential Portfolio Managers Unit Trusts Limited	South Africa	94% Prudential Portfolio Managers (South Africa) (Pty) Limited
Prudential Process Management Services India Private Limited	India	99.97% Prudential Corporation Holdings Limited 0.03% Prudential UK Services Limited
Prudential Properties Trusty Pty Limited	Australia	100% The Prudential Assurance Company Limited
Prudential Property Investment Management (Singapore) Pte Limited	Singapore	50% Prudential Singapore Holdings Pte Limited 50% PruPIM Ltd
Prudential Property Investment Managers Limited	United Kingdom	100% M&G Limited
Prudential Property Services (Bristol) Limited	United Kingdom	100% Prudential Property Services Limited
Prudential Property Services Limited	United Kingdom	100% Prudential plc
Prudential Protect Limited	United Kingdom	100% Prudential Health Holdings Limited
Prudential Pte Ltd	Singapore	100% Prudential Singapore Holdings Pte Limited
Prudential Quest Limited	United Kingdom	100% Prudential Group Holdings Limited
Prudential Retirement Income Limited	United Kingdom	100% The Prudential Assurance Company Limited
Prudential Securities Limited	United Kingdom	50% Prudential (B1) Limited 50% Prudential (B2) Limited
Prudential Services Asia Sdn Bhd	Malaysia	100% Prudential Corporation Holdings Limited
Prudential Services Limited	United Kingdom	100% Prudential Corporation Holdings Limited
Prudential Services Singapore Pte Limited	Singapore	100% Prudential Singapore Holdings Pte Limited
Prudential Singapore Holdings Pte Limited	Singapore	100% Prudential Corporation Holdings Limited
Prudential Staff Pensions Limited	United Kingdom	100% Prudential Group Holdings Limited
Prudential Trustee Company Limited	United Kingdom	100% M&G Limited
Prudential UK Services Limited	United Kingdom	100% Prudential Financial Services Limited
Prudential Unit Trusts Limited	United Kingdom	100% M&G Limited
Prudential Vietnam Assurance Private Limited	Vietnam	100% Prudential Corporation Holdings Limited
Prudential Vietnam Finance Company Limited	Vietnam	100% Prudential Holborn Life Limited
Prudential Vietnam Fund Management Private Limited Company	Vietnam	100% Prudential Vietnam Assurance Private Limited
Prulink Pte Limited	Singapore	100% Prudential Singapore Holdings Pte Limited
Prutec Limited	United Kingdom	100% The Prudential Assurance Company Limited
Quinner AG	Germany	100% Prudential Corporation Holdings Limited
Reeds Rain Prudential Limited	United Kingdom	100% Prudential Property Services Limited
SII Insurance Agency, Inc.	Massachusetts	100% SII Investments, Inc.
SII Insurance Agency, Inc.	Wisconsin	100% SII Investments, Inc.
SII Investments, Inc.	Wisconsin	100% National Planning Holdings, Inc.
SII Ohio Insurance Agency, Inc.	Ohio	100% SII Investments, Inc.
Scottish Amicable Finance plc	Scotland	100% The Prudential Assurance Company Limited
Scottish Amicable ISA Managers Limited	Scotland	100% The Prudential Assurance Company Limited
Scottish Amicable Life Assurance Society	Scotland	100% The Prudential Assurance Company Limited
Scottish Amicable PEP and ISA Nominees Limited	Scotland	100% Scottish Amicable Life Assurance Society
Snushalls Team Limited	United Kingdom	100% Prudential Property Services Limited
Squire Reassurance Company LLC	Michigan	100% Jackson National Life Insurance Company
Squire Capital I LLC	Michigan	100% Jackson National Life Insurance Company
Squire Capital II LLC	Michigan	100% Jackson National Life Insurance Company
Sri Han Suria Sdn Berhad	Malaysia	51% Prudential Corporation Holdings Limited
Stableview Limited	United Kingdom	100% M&G Limited
Staple Limited	Thailand	100% Prudential Corporation Holdings Limited
Staple Nominees Limited	United Kingdom	100% Prudential Personal Equity Plans Limited
The First British Fixed Trust Company Limited	United Kingdom	100% M&G Limited
The Forum, Solent, Management Company Limited	United Kingdom	100% The Prudential Assurance Company Limited
The Prudential Assurance Company Limited	United Kingdom	100% Prudential plc
True Prospect Limited	British Virgin Islands	100% Prudential Corporation Holdings Limited
Wharfedale Acquisitions Limited	United Kingdom	100% Wharfedale Acquisitions Subholdings Limited
Wharfedale Acquisitions Holdings Limited	United Kingdom	100% Infracapital Nominees Limited
Wharfedale Acquisitions Subholdings Limited	United Kingdom	100% Wharfedale Acquisitions Holdings Limited
Yeslink Interco Limited	United Kingdom	100% Prudential Group Holdings Limited
Zelda Acquisitions Holdings Limited	United Kingdom	100% Infracapital Nominees Limited
Zelda Acquisitions Limited	United Kingdom	100% Zelda Acquisitions Holdings Limited

Item 27. Number of Contract Owners as of February 29, 2012

Qualified – 5

Non-Qualified – 10

Item 28. Indemnification

Provision is made in the Company's Amended By-Laws for indemnification by the Company of any person who was or is a party or is threatened to be made a party to a civil, criminal, administrative or investigative action by reason of the fact that such person is or was a director, officer or employee of the Company, against expenses, including attorneys' fees, judgments, fines and amounts paid in settlement actually and reasonably incurred by such person in connection with such action, suit or proceedings, to the extent and under the circumstances permitted by the General Corporation Law of the State of Michigan.

Insofar as indemnification for liabilities arising under the Securities Act of 1933 ("Act") may be permitted to directors, officers and controlling persons of the Company pursuant to the foregoing provisions, or otherwise, the Company has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable. In the event that a claim for indemnification against liabilities (other than the payment by the Company of expenses incurred or paid by a director, officer or controlling person of the Company in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the Company will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final adjudication of such issue.

Item 29. Principal Underwriter

Jackson National Life Distributors LLC acts as general distributor for the Jackson National Separate Account - I. Jackson National Life Distributors LLC also acts as general distributor for the Jackson National Separate Account III, the Jackson National Separate Account IV, the Jackson National Separate Account V, the JNLNY Separate Account I, the JNLNY Separate Account II, and the JNLNY Separate Account IV.

b)	Directors and Officers of Jackson National Life Distributors LLC:

Name and Business Address	Positions and Offices with Underwriter


Greg Cicotte	Manager, President & Chief Executive Officer
7601 Technology Way
Denver, CO 80237

Clifford J. Jack	Manager
7601 Technology Way
Denver, CO 80237

Thomas J. Meyer	Manager & Secretary
1 Corporate Way
Lansing, MI 48951

Paul Chad Myers	Manager
1 Corporate Way
Lansing, MI 48951

Stephen M. Ash	Vice President
7601 Technology Way
Denver, CO 80237

Pamela Aurbach	Vice President
7601 Technology Way
Denver, CO 80237

Jeffrey Bain	Vice President
7601 Technology Way
Denver, CO 80237

Brad Baker	Vice President
7601 Technology Way
Denver, CO 80237

Mercedes Biretto	Vice President
7601 Technology Way
Denver, CO 80237

James Bossert	Senior Vice President
7601 Technology Way
Denver, CO 80237

Tori Bullen	Senior Vice President
210 Interstate North Parkway
Suite 401
Atlanta, GA 30339-2120

Bill J. Burrow	Senior Vice President
7601 Technology Way
Denver, CO 80237

Maura Collins	Executive Vice President, Chief Financial Officer & FinOP
7601 Technology Way
Denver, CO 80237

Paul Fitzgerald	Senior Vice President
7601 Technology Way
Denver, CO 80237

Julia A. Goatley	Assistant Secretary
1 Corporate Way
Lansing, MI 48951

Luis Gomez	Vice President
7601 Technology Way
Denver, CO 80237

Kevin Grant	Senior Vice President
7601 Technology Way
Denver, CO 80237

Thomas Hurley	Senior Vice President
7601 Technology Way
Denver, CO 80237

Mark Jones	Vice President
7601 Technology Way
Denver, CO 80237

Doug Mantelli	Vice President
7601 Technology Way
Denver, CO 80237

James McCorkle	Vice President
7601 Technology Way
Denver, CO 80237

Brook Meyer	Vice President
1 Corporate Way
Lansing, MI 48951

Jack Mishler	Senior Vice President
7601 Technology Way
Denver, CO 80237

Steven O’Connor	Vice President
7601 Technology Way
Denver, CO 80237

Jeremy D. Rafferty	Vice President
7601 Technology Way
Denver, CO 80237

Alison Reed	Senior Vice President
7601 Technology Way
Denver, CO 80237

Scott Romine	Executive Vice President, National Sales Manager
7601 Technology Way
Denver, CO 80237

Gregory B. Salsbury	Executive Vice President, Distribution
7601 Technology Way
Denver, CO 80237

Marilynn Scherer	Vice President
7601 Technology Way
Denver, CO 80237

Kathleen Schofield	Vice President
7601 Technology Way
Denver, CO 80237

Daniel Starishevsky	Senior Vice President
7601 Technology Way
Denver, CO 80237

Ryan Strauser	Vice President
7601 Technology Way
Denver, VO 80237

Brian Sward	Vice President
7601 Technology Way
Denver, CO 80237

Jeremy Swartz	Vice President
7601 Technology Way
Denver, CO 80237

Robin Tallman	Vice President & Controller
7601 Technology Way
Denver, CO 80237

Doug Townsend	Executive Vice President, Operations
7601 Technology Way
Denver, CO 80237

Katie Turner	Vice President
7601 Technology Way
Denver, CO 80237

Brad Whiting	Vice President
7601 Technology Way
Denver, CO 80237

Daniel Wright	Senior Vice President & Chief Compliance Officer
7601 Technology Way
Denver, CO 80237

Phil Wright	Vice President
7601 Technology Way
Denver, CO 80237

(c)

Name of Principal Underwriter	Net Underwriting Discounts and Commissions	Compensation on Redemption or Annuitization	Brokerage Commissions	Compensation
Jackson National Life Distributors LLC	Not Applicable	Not Applicable	Not Applicable	Not Applicable

Item. 30. Location of Accounts and Records

Jackson National Life Insurance Company

1 Corporate Way

Lansing, Michigan 48951

Jackson National Life Insurance Company

Institutional Marketing Group Service Center

1 Corporate Way

Lansing, Michigan 48951

Jackson National Life Insurance Company

7601 Technology Way

Denver, Colorado 80237

Jackson National Life Insurance Company

225 West Wacker Drive, Suite 1200

Chicago, IL 60606

Item. 31. Management Services

Not Applicable.

Item. 32. Undertakings and Representations

Jackson National Life Insurance Company hereby undertakes to file a post-effective amendment to this registration statement as frequently as is necessary to ensure that the audited financial statements in the registration statement are never more than sixteen (16) months old for so long as payment under the variable annuity contracts may be accepted.

Jackson National Life Insurance Company hereby undertakes to include either (1) as part of any application to purchase a contract offered by the Prospectus, a space that an applicant can check to request a Statement of Additional Information, or (2) a postcard or similar written communication affixed to or included in the Prospectus that the applicant can remove to send for a Statement of Additional Information.

c)	Jackson National Life Insurance Company hereby undertakes to deliver any Statement of Additional Information and any financial statement required to be made available under this Form promptly upon written or oral request.

d)	Jackson National Life Insurance Company represents that the fees and charges deducted under the contract, in the aggregate, are reasonable in relation to the services rendered, the expenses to be incurred, and the risks assumed by Jackson National Life Insurance Company.

The Registrant hereby represents that any contract offered by the prospectus and which is issued pursuant to Section 403(b) of the Internal Revenue Code of 1986 as amended, is issued by the Registrant in reliance upon, and in compliance with, the Securities and Exchange Commission's industry-wide no-action letter to the American Council of Life Insurance (publicly available November 28, 1988) which permits withdrawal restrictions to the extent necessary to comply with IRS Section 403(b)(11).

SIGNATURES

As required by the Securities Act of 1933 and the Investment Company Act of 1940, the Registrant certifies that it meets the requirements of Securities Act Rule 485(b) for effectiveness of this post-effective amendment to the Registration Statement and has caused this post-effective amendment to the Registration Statement to be signed on its behalf, in the City of Lansing, and State of Michigan, on this 26th day of April, 2012.

Jackson National Separate Account - I

(Registrant)

Jackson National Life Insurance Company

By: /s/ Thomas J. Meyer

Thomas J. Meyer

Senior Vice President, General Counsel

and Secretary

Jackson National Life Insurance Company

(Depositor)

By: /s/ Thomas J. Meyer

Thomas J. Meyer

Senior Vice President, General Counsel

and Secretary

As required by the Securities Act of 1933, this post-effective amendment to the Registration Statement has been signed by the following persons in the capacities and on the dates indicated.


*	April 26, 2012
Michael A. Wells, President, Chief
Executive Officer, Director and Chairman



*	April 26, 2012
James R. Sopha, Chief Operating Officer
and Director



*	April 26, 2012
Clifford J. Jack, Executive Vice President
and Director



*	April 26, 2012
P. Chad Myers, Executive Vice President, Chief Financial Officer and Director




*	April 26, 2012
Robert A. Fritts, Senior Vice President and
Controller



*	April 26, 2012
Leandra R. Knes, Director

* By: /s/ Thomas J. Meyer

Thomas J. Meyer, as Attorney-in-Fact,

pursuant to Power of Attorney filed herewith.

POWER OF ATTORNEY

KNOW ALL MEN BY THESE PRESENTS, that each of the undersigned as directors and/or officers of JACKSON NATIONAL LIFE INSURANCE COMPANY (the Depositor), a Michigan corporation, hereby appoint Michael A. Wells, P. Chad Myers, Thomas J. Meyer, Patrick W. Garcy, Susan S. Rhee, and Anthony L. Dowling (each with power to act without the others) his/her attorney-in-fact and agent, with full power of substitution and resubstitution, for and in his/her name, place and stead, in any and all capacities, to sign applications and registration statements, and any and all amendments, with power to affix the corporate seal and to attest it, and to file the applications, registration statements, and amendments, with all exhibits and requirements, in accordance with the Securities Act of 1933, the Securities and Exchange Act of 1934, and/or the Investment Company Act of 1940. This Power of Attorney concerns Jackson National Separate Account - I (File Nos. 033-82080, 333-70472, 333-73850, 333-118368, 333-119656, 333-132128, 333-136472, 333-155675, 333-172874, 333-172875, 333-172877, 333-175718, 333-175719, 333-176619, and 333-178774), Jackson National Separate Account III (File No. 333-41153), Jackson National Separate Account IV (File Nos. 333-108433 and 333-118131), and Jackson National Separate Account V (File No. 333-70697), as well as any future separate account(s) and/or future file number(s) within any separate account(s) that the Depositor establishes through which securities, particularly variable annuity contracts and variable universal life insurance policies, are to be offered for sale. The undersigned grant to each attorney-in-fact and agent full authority to take all necessary actions to effectuate the above as fully, to all intents and purposes, as he/she could do in person, thereby ratifying and confirming all that said attorneys-in-fact and agents, or any one of them, may lawfully do or cause to be done by virtue hereof. This instrument may be executed in one or more counterparts.

IN WITNESS WHEREOF, the undersigned have executed this Power of Attorney effective as of the 10th day of February, 2012.

/s/ MICHAEL A. WELLS

______________________________________

Michael A. Wells, President, Chief

Executive Officer, Chairman and Director

/s/ JAMES R. SOPHA

______________________________________

James R. Sopha, Chief Operating Officer

and Director

/s/ CLIFFORD J. JACK

______________________________________

Clifford J. Jack, Executive Vice President

and Director

/s/ P. CHAD MYERS

______________________________________

P. Chad Myers, Executive Vice President,

Chief Financial Officer and Director

/s/ ROBERT A. FRITTS

______________________________________

Robert A. Fritts, Senior Vice President and

Controller

/s/ LEANDRA R. KNES

______________________________________

Leandra R. Knes, Director

EXHIBIT LIST

Exhibit No. Description

9.	Opinion and Consent of Counsel.

10.	Consent of Independent Registered Public Accounting Firm.

Approximate Date of Proposed Public Offering:

It is proposed that this filing will become effective (check appropriate box)
[ ]	immediately upon filing pursuant to paragraph (b)
[X]	on April 30, 2012 pursuant to paragraph (b)
[ ]	60 days after filing pursuant to paragraph (a)(1)
[ ]	on (date) pursuant to paragraph (a)(1).

If appropriate, check the following box:
[ ]	this post-effective amendment designates a new effective date for a previously filed post-effective amendment

Title of Securities Being Registered: the variable portion of Flexible Premium Fixed and Variable Deferred Annuity contracts

	Allocation Options	The Contract makes available Investment Divisions and a Fixed Account for allocation of your premium payments and Contract Value. For more information about the fixed options, please see “THE FIXED ACCOUNT” beginning on page 10. For more information about the Investment Divisions, please see “INVESTMENT DIVISIONS” beginning on page 11.

	Investment Purpose	The Contract is intended to help you save for retirement or another long-term investment purpose. The Contract is designed to provide tax deferral on your earnings, if it is not issued under a qualified retirement plan. Qualified plans confer their own tax deferral. For more information, please see “TAXES” beginning on page 45.

	Free Look	If you change your mind about having purchased the Contract, you may return it without penalty. There are conditions and limitations, including time limitations, depending on where you live. For more information, please see “Free Look” beginning on page 49. In some states, we are required to hold the premiums of a senior citizen in the Fixed Account during the free look period, unless we are specifically directed to allocate the premiums to the Investment Divisions. State laws vary; your free look rights will depend on the laws of the state in which you purchased the Contract.

	Purchases	Premiums are accepted during the first six Contract Months only. As a result, you may have to buy additional Contracts to meet your total annuity coverage goal. Multiple Contracts may result in higher charges and total expenses. There are also minimum and maximum premium requirements. In addition, the Contract has a premium protection option, namely the Capital Protection Program. For more information, please see “PURCHASES” beginning on page 20. There is a breakpoint schedule for the Mortality and Expense Risk Charge. The breakpoints are based on the amount of Aggregate Premium. Aggregate Premium at issue is equal to the anticipated total premium specified in the Statement of Intention section of the annuity application. If no Statement of Intention is provided, the Aggregate Premium at issue will equal the initial premium received. The Aggregate Premium is re-determined only at the end of the sixth Contract Month and is equal to total Premium actually paid less total partial withdrawals. A change in the Aggregate Premium at the end of the sixth Contract Month may dictate an adjustment to the Mortality and Expense Risk Charge at that time but in no event will the Mortality and Expense Risk Charge be adjusted for changes in Aggregate Premium or Contract value subsequent to this initial six Contract Month period. For more information, please see “CONTRACT CHARGES” beginning on page 13.

	Withdrawals	Before the Income Date, there are a number of ways to access your Contract Value, generally subject to a charge or adjustment, particularly during the early Contract Years. There are also a number of optional withdrawal benefits available. The Contract has a free withdrawal provision and waives the charges and adjustments in the event of some unforeseen emergencies. However, partial withdrawals within the first six Contract Months may result in a change to the Mortality and Expense Risk Charge assessed after the sixth Contract Month. For more information, please see “ACCESS TO YOUR MONEY” beginning on page 23.

	Income Payments	There are a number of income options available. For more information, please see “INCOME PAYMENTS (THE INCOME PHASE)” beginning on page 41.

	Death Benefit	The Contract has a death benefit that becomes payable if you die before the Income Date. There are also optional death benefits available. For more information, please see “DEATH BENEFIT” beginning on page 43.


Owner Transaction Expenses

	Front-end Sales Load		None

	Maximum Withdrawal Charge 1
		Percentage of premium withdrawn, if applicable	5%

	Maximum Premium Taxes 2
		Percentage of each premium	3.5%

	Commutation Fee:Upon a total withdrawal after income payments have commenced under income option 4, or if after death during the period for which payments are guaranteed under income option 3 and Beneficiary elects a lump sum payment, the amount received will be reduced by (a) minus (b) where:
		· (a) = the present value of the remaining income payments (as of the date of calculation) for the period for which payments are guaranteed to be made, discounted at the rate assumed in calculating the initial payment; and
		· (b) = the present value of the remaining income payments (as of the date of calculation) for the period for which payments are guaranteed to be made, discounted at a rate no more than 1.00% higher than the rate used in (a).

	Transfer Charge 3
		Per transfer after 15 in a Contract Year	$25

	Expedited Delivery Charge 4		$22.50


Periodic Expenses

	Base Contract

	Annual Contract Maintenance Charge 5				$35

	Mortality and Expense Risk Charge
	The Mortality and Expense Risk Charge is expressed as an annual percentage of the average daily account value of the Investment Divisions and is set initially based upon the breakpoint schedule below using the Aggregate Premium determined at issue. Aggregate Premium at issue is equal to the anticipated total premium specified in the Statement of Intention section of the annuity application. If no Statement of Intention is indicated, the Aggregate Premium at issue will equal the initial premium received. The Aggregate Premium will be re-determined only at the end of the sixth Contract Month, which may result in a change to the Mortality and Expense Risk Charge assessed after the sixth Contract Month. At the time the Aggregate Premium is re-determined, the Mortality and Expense Risk Charge will be based on the newly determined Aggregate Premium. 6
		Aggregate Premium	Years 1-7	Years 8+
		$50,000 to $99,999.99	0.90%	0.30%
		$100,000 to $249,999.99	0.60%	0.30%
		$250,000 to $499,999.99	0.35%	0.30%
		$500,000 to $749,999.99	0.25%	0.25%
		$750,000 to $999,999.99	0.20%	0.20%
		$1,000,000+	0.15%	0.15%

	Administration Charge (in all years)					0.15%

	Maximum Total Separate Account Annual Expenses for Base Contract for Years 1-7 Maximum Total Separate Account Annual Expenses for Base Contract for Years 8+ As an annual percentage of average daily account value of Investment Divisions					1.05% 0.45%


	Optional Endorsements - The endorsement charges for the optional death benefits are based on average account value. Please see footnotes 8 - 10 for those charges that are not based on average account value.

	A variety of Optional Endorsements to the Contract are available. You may select one of each grouping below. 7

	5% GMWB With Annual Step-Up Maximum Annual Charge (no longer offered as of May 1, 2011) (“AutoGuard 5SM”) 8		1.47%

	5% For Life GMWB With Annual Step-Up Maximum Annual Charge (no longer offered as of April 30, 2007) (“LifeGuard Protector ® ”) 9		1.47%

	Joint 5% For Life GMWB With Annual Step-Up Maximum Annual Charge (no longer offered as of April 30, 2007) (“LifeGuard Protector ® with Joint Option”) 10		1.62%

	Return of Premium Death Benefit 11		0.55%

	Highest Anniversary Value Death Benefit Maximum Annual Charge 12		0.55%

	Pre-Effective Amendment No.	[ ]

	Post-Effective Amendment No. 9	[X]

and/or

TABLE OF CONTENTS
GLOSSARY	3
KEY FACTS	4
FEES AND EXPENSES TABLES	5
Owner Transaction Expenses	5
Periodic Expenses	6
Total Annual Fund Operating Expenses	8
EXAMPLE	8
CONDENSED FINANCIAL INFORMATION	9
THE ANNUITY CONTRACT	9
JACKSON	10
THE FIXED ACCOUNT	10
THE SEPARATE ACCOUNT	11
INVESTMENT DIVISIONS	11
JNL Series Trust	12
Voting Privileges	12
Substitution	12
CONTRACT CHARGES	13
Mortality and Expense Risk Charge	13
Annual Contract Maintenance Charge	14
Administration Charge	14
Transfer Charge	14
Withdrawal Charge	14
5% Guaranteed Minimum Withdrawal Benefit with Annual Step-Up (“AutoGuard 5”) Charge	15
5% For Life Guaranteed Minimum Withdrawal Benefit with Annual Step-Up (“LifeGuard Protector”) Charge	16
Joint 5% For Life Guaranteed Minimum Withdrawal Benefit with Annual Step-Up (“LifeGuard Protector with Joint Option”) Charge	17
Death Benefit Charges	17
Commutation Fee	18
Other Expenses	18
Premium Taxes	18
Income Taxes	18
DISTRIBUTION OF CONTRACTS	18
PURCHASES	20
Minimum Initial Premium	20
Minimum Additional Premiums	20
Maximum Premiums	20
Allocations of Premium	20
Capital Protection Program	20
Accumulation Units	21
TRANSFERS AND FREQUENT TRANSFER RESTRICTIONS	21
Restrictions on Transfers: Market Timing	21
TELEPHONE AND INTERNET TRANSACTIONS	22
The Basics	22
What You Can Do and How	22
What You Can Do and When	22
How to Cancel a Transaction	22
Our Procedures	23
ACCESS TO YOUR MONEY	23
Waiver of Withdrawal Charges for Certain Emergencies	24
Guaranteed Minimum Withdrawal Benefit General Considerations	25
Guaranteed Minimum Withdrawal Benefit Important Special Considerations	25
5% Guaranteed Minimum Withdrawal Benefit with Annual Step-Up (“AutoGuard 5”)	26
5% For Life Guaranteed Minimum Withdrawal Benefit with Annual Step-Up (“LifeGuard Protector”)	29
Joint 5% For Life Guaranteed Minimum Withdrawal Benefit with Annual Step-Up (“LifeGuard Protector with Joint Option”)	35
Systematic Withdrawal Program	41
Suspension of Withdrawals or Transfers	41
INCOME PAYMENTS (THE INCOME PHASE)	41
Variable Income Payments	42
Income Options	42
DEATH BENEFIT	43
Basic Death Benefit	43
Optional Death Benefits	43
Payout Options	44
Pre-Selected Payout Options	44
Special Spousal Continuation Option	44
Death of Owner On or After the Income Date	45
Death of Annuitant	45
TAXES	45
Contract Owner Taxation	45
Tax-Qualified and Non-Qualified Contracts	45
Non-Qualified Contracts – General Taxation	45
Non-Qualified Contracts – Aggregation of Contracts	45
Non-Qualified Contracts – Withdrawals and Income Payments	46
Non-Qualified Contracts – Required Distributions	46
Tax-Qualified Contracts – Withdrawals and Income Payments	46
Withdrawals – Tax-Sheltered Annuities	46
Withdrawals – Roth IRAs	47
Constructive Withdrawals – Investment Adviser Fees	47
Extension of Latest Income Date	47
Death Benefits	47
Assignment	47
Diversification	47
Owner Control	47
Withholding	48
Jackson Taxation	48
OTHER INFORMATION	48
Dollar Cost Averaging	48
Dollar Cost Averaging Plus (DCA+)	48
Earnings Sweep	48
Rebalancing	49
Free Look	49
Advertising	49
Restrictions Under the Texas Optional Retirement Program (ORP)	49
Modification of Your Contract	49
Confirmation of Transaction s	49
Legal Proceedings	50
PRIVACY POLICY	50
Collection of Nonpublic Personal Information	50
Disclosure of Current and Former Customer Nonpublic Personal Information	50
Security to Protect the Confidentiality of Nonpublic Personal Information	50
TABLE OF CONTENTS OF THE STATEMENT OF ADDITIONAL INFORMATION	51
APPENDIX A (Trademarks, Services Marks, and Related Disclosures)	A-1
APPENDIX B (GMWB Prospectus Examples)	B-1
APPENDIX C (Broker-Dealer Support)	C-1
APPENDIX D (Accumulation Unit Values)	D-1

	Completed Years Since Receipt Of Premium -
	0	1	2	3	4	5	6+
Base Schedule	5%	4%	3%	3%	2%	1%	0%

5% for Life GMWB With Annual Step-Up
Annual Charge	Maximum		Current
Ages 45 – 49	0.85%÷4	0.87%÷12	0.40%÷4	0.42%÷12
50 – 54	0.85%÷4	0.87%÷12	0.40%÷4	0.42%÷12
55 – 59	1.20%÷4	1.20%÷12	0.65%÷4	0.66%÷12
60 – 64	1.30%÷4	1.32%÷12	0.75%÷4	0.75%÷12
65 – 69	1.45%÷4	1.47%÷12	0.90%÷4	0.90%÷12
70 – 74	0.85%÷4	0.87%÷12	0.50%÷4	0.51%÷12
75 – 80	0.60%÷4	0.60%÷12	0.35%÷4	0.36%÷12
Charge Basis	GWB
Charge Frequency	Quarterly	Monthly	Quarterly	Monthly

Fund Operating Expenses (As an annual percentage of each Fund's average daily net assets) Fund Name	Management and Admin Fee	Distribution and/or Service (12b-1) Fees	Other Expenses	Acquired Fund Fees and Expenses	Total Annual Fund Operating Expenses
JNL Disciplined Moderate	0.18%	0.00%	0.00%	0.6 9 %	0.8 7 %
JNL Disciplined Moderate Growth	0.18%	0.00%	0.00%	0.6 8 %	0.8 6 %
JNL Disciplined Growth	0.18%	0.00%	0.00%	0.6 7 %	0.8 5 %

●	our Fixed Account, as may be made available by us, or as may be otherwise limited by us,
●	Investment Divisions of the Separate Account that invest in underlying Funds.

●	the accumulation phase, which is the period between the issue date of the Contract and the Income Date, and
●	the income phase, which begins on the Income Date and is when we make income payments to you.

●	to make income payments for the life of the Annuitant during the income phase;
●	to waive the withdrawal charge in the event of the Owner's death; and
●	to provide a basic death benefit prior to the Income Date.

●	premiums that are no longer subject to a withdrawal charge (premiums in your annuity for at least six years), plus
●	earnings (excess of your Contract Value allocated to the Investment Divisions and the Fixed Account over your remaining premiums allocated to those accounts)
●	during each Contract Year 10% of premium that would otherwise incur a withdrawal charge or be reduced by an Excess Interest Adjustment, and that has not been previously withdrawn (this can be withdrawn at once or in segments throughout the Contract Year), minus earnings (required minimum distributions will be counted as part of the free withdrawal amount).

●	withdrawals in excess of the free withdrawal amounts, or
●	withdrawals under a tax-qualified Contract that exceed its required minimum distributions, or
●	withdrawals in excess of the free withdrawal amounts to meet the required minimum distribution of a tax-qualified Contract purchased with contributions from a nontaxable transfer, after the Owner's death, of an Individual Retirement Annuity (IRA), or to meet the required minimum distribution of a Roth IRA annuity, or
●	amounts withdrawn in a total withdrawal, or
●	amounts applied to income payments on an Income Date that is within one year of the Issue Date.

Completed Years since Receipt of Premium	0	1	2	3	4	5	6+

Base Schedule	5%	4%	3%	3%	2%	1%	0%

●	income payments during your Contract’s income phase (but the withdrawal charge is deducted at the Income Date if income payments are commenced in the first Contract Year);
●	death benefits;
●	withdrawals necessary to satisfy the required minimum distribution of the Internal Revenue Code (but if the withdrawal requested exceeds the required minimum distribution; if the Contract was purchased with contributions from a nontaxable transfer, after the Owner's death, of an Individual Retirement Annuity (IRA); or is a Roth IRA annuity, then the entire withdrawal in excess of the free withdrawal amount will be subject to the withdrawal charge);
●	if permitted by your state, withdrawals of up to $250,000 from the Investment Divisions and Fixed Account if you incur a terminal illness or if you need extended hospital or nursing home care as provided in your Contract; or
●	if permitted by your state, withdrawals of up to 25% of your Contract Value from the Investment Divisions and Fixed Account (12 1/2% for each of two joint Owners) if you incur certain serious medical conditions specified in your Contract.

●	(a) = the present value of the remaining income payments (as of the date of calculation) for the period for which payments are guaranteed to be made, discounted at the rate assumed in calculating the initial payment; and
●	(b) = the present value of the remaining income payments (as of the date of calculation) for the period for which payments are guaranteed to be made, discounted at a rate no more than 1.00% higher than the rate used in (a).

●	National Planning Corporation
●	SII Investments, Inc.
●	IFC Holdings, Inc. d/b/a Invest Financial Corporation
●	Investment Centers of America, Inc.
●	Curian Clearing LLC

●	determining the total amount of assets held in the particular Investment Division;
●	subtracting any asset-based charges and taxes chargeable under the Contract; and
●	dividing this amount by the number of outstanding Accumulation Units.

●	limiting the number of transfers over a period of time;
●	requiring a minimum time period between each transfer;
●	limiting transfer requests from an agent acting on behalf of one or more Owners or under a power of attorney on behalf of one or more Owners; or
●	limiting the dollar amount that you may transfer at any one time.

●	by making either a partial or complete withdrawal,
●	by electing the Systematic Withdrawal Program,
●	by electing a Guaranteed Minimum Withdrawal Benefit (“GMWB”), or
●	by electing to receive income payments.

●	The actual Premium paid to date;
●	Less total partial withdrawals to date unless one of the two following conditions apply:
	1.	Total partial withdrawals are less than the maximum annual withdrawal permitted in accordance with the GMWB, if applicable. The following rules apply in determining the amount of total partial withdrawals:
			a.	Partial Withdrawals are assumed to be the total amount withdrawn from the Contract, including any Withdrawal Charges and Excess Interest Adjustments; and
			b.	All withdrawals including systematic withdrawals, required minimum distributions prior to the Income Date, withdrawals of asset allocation and advisory fees, and free withdrawals are counted toward the total amount withdrawn.
	Or
	2.		All partial withdrawals taken during the first six Contract Months are made to satisfy required minimum distributions under the Internal Revenue Code for each applicable calendar year spanned by the six Contract Month period.

●	Terminal Illness Benefit, under which we will waive any withdrawal charges on amounts of up to $250,000 of your Contract Value from the Investment Divisions and Fixed Account that you withdraw after providing us with a physician's statement that you have been diagnosed with an illness that will result in your death within 12 months;
●	Specified Conditions Benefit, under which you may make a one-time withdrawal of up to 25% (for joint Owners, this benefit applies to each of them for 12 1/2%) of your Contract Value from the Investment Divisions and Fixed Account with no withdrawal charge after having provided us with a physician's statement that you have been diagnosed with one of the following conditions:
		○	Heart attack
		○	Stroke
		○	Coronary artery surgery
		○	Life-threatening cancer
		○	Renal failure or
		○	Alzheimer's disease; and
●	Extended Care Benefit, under which we will waive any withdrawal charges on amounts of up to $250,000 of your Contract Value from the Investment Divisions and Fixed Account that you withdraw after providing us with a physician's statement that you have been confined to a nursing home or hospital for 90 consecutive days, beginning at least 30 days after your Contract was issued.

·	the GWB prior to the partial withdrawal less the partial withdrawal; or
·	zero.

●	the GAWA prior to the partial withdrawal; or
●	the GWB after the partial withdrawal.

●	the GWB prior to the partial withdrawal, first reduced dollar-for-dollar for any portion of the partial withdrawal not defined as an Excess Withdrawal (see below), then reduced in the same proportion that the Contract Value is reduced by the Excess Withdrawal; or
●	zero.

●	the total amount of the current partial withdrawal, or
●	the amount by which the cumulative partial withdrawals for the current Contract Year exceeds the greater of the GAWA or the RMD, as applicable.

·	the Contract Value after the partial withdrawal; or
·	the greater of the GWB prior to the partial withdrawal less the partial withdrawal or zero.

·	the GAWA prior to the partial withdrawal, or
·	the GWB after the partial withdrawal, or
·	5% of the Contract Value after the partial withdrawal.

●	The Owner's life (the “For Life Guarantee”) if the For Life Guarantee is in effect;
		The For Life Guarantee is based on the life of the first Owner to die with joint Owners. There is also another GMWB option for joint Owners that are spouses, as described below.
		For the Owner that is a legal entity, the For Life Guarantee is based on the Annuitant's life (or the life of the first Annuitant to die if there is more than one Annuitant).
		The For Life Guarantee becomes effective on the Contract Anniversary on or immediately following the Owner's 65th birthday (or with joint Owners, the oldest Owner's 65th birthday). If the Owner (or oldest Owner) is 65 years old or older on the endorsement's effective date, then the For Life Guarantee is effective when this GMWB is added to the Contract.
		So long as the For Life Guarantee is in effect, withdrawals are guaranteed even in the event Contract Value is reduced to zero.
Or
●	Until all withdrawals under the Contract equal the Guaranteed Withdrawal Balance (GWB), without regard to Contract Value.
		The GWB is the guaranteed amount available for future periodic withdrawals.
Because of the For Life Guarantee, your withdrawals could amount to more than the GWB. But PLEASE NOTE: The guarantees of this GMWB are subject to the endorsement's terms, conditions, and limitations that are explained below.

When this GMWB is added to the Contract on the Issue Date –	The GWB equals initial premium net of any applicable premium taxes.
	The GAWA equals 5% of the GWB.

When this GMWB is added to the Contract on any Contract Anniversary –	The GWB equals Contract Value.
	The GAWA equals 5% of the GWB.

When a withdrawal, plus all prior withdrawals in the	The GWB is recalculated, equaling the greater of:
current Contract Year, is less than or equal to the greater of		●	The GWB before the withdrawal less the withdrawal; Or
the GAWA or RMD, as applicable –		●	Zero.
	The GAWA:
		●	Is unchanged while the For Life Guarantee is in effect; Otherwise
		●	Is recalculated, equaling the lesser of the GAWA before the withdrawal, or the GWB after the withdrawal.

When a withdrawal, plus all prior withdrawals in the	The GWB is recalculated, equaling the lesser of:
current Contract Year, exceeds the greater of the GAWA		●	Contract Value after the withdrawal; Or
or RMD, as applicable –		●	The greater of the GWB before the withdrawal less the withdrawal, or zero.
	The GAWA is recalculated, equaling the lesser of:
		●	5% of the Contract Value after the withdrawal; Or
		●	The greater of 5% of the GWB after the withdrawal, or zero.