Jackson Financial (JXN) has experienced a remarkable 40% increase in share price over the past year, driven by strong financial results and capital returns. However, the stock has recently declined by 20% from its peak as investors express concerns about potential losses in private credit portfolios. This sector has faced significant pressure, with $20 billion in redemption requests reported in the last quarter, prompting some firms to restrict withdrawals due to caps on redemptions. The rapid growth of private credit, particularly in direct lending, has raised alarms about potential risks, especially with the emergence of defaults in software lending linked to disruptions from artificial intelligence. Despite these challenges, Jackson Financial's strong positioning in the insurance industry and its ongoing partnership with TPG suggest it may weather these storms effectively. Given the recent pullback, investors may find this an opportune moment to consider JXN as a strong buy.