Brighthouse Financial Announces Fourth Quarter and Full Year 2023 Results
- None.
- Net loss available to shareholders of $942 million in Q4 2023.
- Adjusted earnings decreased to $189 million in Q4 2023 compared to $545 million in Q4 2022.
- Annuity sales decreased by 15% quarter-over-quarter and 8% year-over-year.
- Repurchased $60 million of common stock in Q4 2023.
- Full year 2023 reported a net loss available to shareholders of $1,214 million.
- Decrease in TAC to approximately $6.3 billion as of December 31, 2023.
Insights
An examination of Brighthouse Financial's reported net loss of $942 million for Q4 2023, contrasted against a net income of $110 million in the same period the previous year, reveals a significant downturn in profitability. This loss is underscored by a decrease in the value of the company's hedges due to market performance, which is an expected outcome given the volatile nature of hedging strategies. The 7% reduction in shares outstanding from share repurchases signals a return of capital to shareholders and may be indicative of management's confidence in the company's intrinsic value. However, the repurchase activity also suggests a potential reduction in equity value, which could affect the stock's liquidity and market perception.
The adjusted earnings of $189 million, excluding notable items, while down from the previous year, still provide a more stable view of the company's operational performance. The increase in holding company liquid assets to $1.3 billion and a strong estimated combined RBC ratio of approximately 420% reflect a robust capital position and liquidity, which are critical for the company's ability to withstand further market volatility and meet policyholder obligations.
For investors, the immediate concern would be the sustainability of the company's dividends and the potential for future share repurchases. The reduction in annuity sales year-over-year could also raise questions about the competitiveness and appeal of Brighthouse Financial's product offerings in the current market environment.
The reported 15% decrease in annuity sales quarter-over-quarter and an 8% year-over-year decline point to challenges in the annuity market segment. This could be attributed to a combination of factors, including increased competition, shifts in consumer preference, or broader economic conditions affecting investment decisions. The strong sales of Shield Level annuities, however, suggest that there is still demand for certain types of annuity products, particularly those that may offer greater protection against market downturns or provide other investment benefits.
On the life insurance front, the 32% increase in life sales quarter-over-quarter and a 28% increase year-over-year indicate an area of growth for the company. This could be driven by demographic trends, such as an aging population, or by strategic initiatives undertaken by the company to capture more of the market share. An analysis of the life insurance sector could provide further insights into consumer behavior and the effectiveness of Brighthouse Financial's sales strategies in this space.
The $12 million unfavorable notable item related to legal matters, reflected in the fourth quarter of 2023, highlights the impact of legal contingencies on financial performance. While the specifics of these legal matters are not detailed, such costs can vary significantly from quarter to quarter and can be a source of financial risk. Investors would benefit from understanding the nature of these legal issues and the company's approach to legal risk management. This understanding can inform assessments of potential future liabilities and their implications for the company's financial stability.
-
Estimated combined risk-based capital ("RBC") ratio of approximately
420% ; holding company liquid assets of$1.3 billion -
$350 million -
The company repurchased
$250 million 7% ; repurchased an additional approximately$30 million $763 million -
Annuity sales for full year 2023 of
$10.6 billion -
Life sales of
$102 million -
Fourth quarter 2023 net loss available to shareholders of
$942 million $14.70 -
Fourth quarter 2023 adjusted earnings, less notable items*, of
$189 million $2.92
Fourth Quarter and Full Year 2023 Results
The company reported a net loss available to shareholders of
The company ended the fourth quarter of 2023 with common stockholders' equity ("book value") of
_________
* Information regarding the non-GAAP and other financial measures included in this news release and a reconciliation of such non-GAAP financial measures to the most directly comparable GAAP measures are provided in the Non-GAAP and Other Financial Disclosures discussion below, as well as in the tables that accompany this news release and/or the Fourth Quarter 2023 Brighthouse Financial, Inc. Financial Supplement and/or the Fourth Quarter and Full Year 2023 Brighthouse Financial, Inc. Earnings Call Presentation (which are available on the Brighthouse Financial Investor Relations webpage at http://investor.brighthousefinancial.com). GAAP results reflect the company's adoption, on January 1, 2023, of the provisions of FASB ASU 2018-12, Targeted Improvements to the Accounting for Long-Duration Contracts ("LDTI"), and any GAAP historical data contained herein has been updated retrospectively. Additional information regarding notable items can be found on the last page of this news release. |
For the fourth quarter of 2023, the company reported adjusted earnings* of
Adjusted earnings for the quarter reflected a
Corporate expenses in the fourth quarter of 2023 were
The company's annuity sales decreased
On a full year basis, the company reported a net loss available to shareholders of
During the fourth quarter of 2023, the company repurchased
“Looking back on the year, I am proud of our many accomplishments, including maintaining our target capitalization and robust liquidity, generating strong sales results, further strengthening our annuity and life insurance product suites and returning additional capital to our shareholders through repurchasing more of our common stock," said Eric Steigerwalt, president and CEO, Brighthouse Financial.
"In the fourth quarter, we implemented a new statutory requirement under which all future hedges must be reflected in reserves and required capital," Steigerwalt continued. "While this had a negative impact on statutory combined total adjusted capital ("TAC"), the new statutory requirement also led to a material decrease in required capital. After paying
"We believe that our strong balance sheet and liquidity, as well as our achievements in 2023, position us well for the future,” concluded Steigerwalt.
Key Metrics (Unaudited, dollars in millions except share and per share amounts)
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As of or For the Three Months Ended |
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December 31, 2023 |
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December 31, 2022 |
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Total |
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Per share |
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Total |
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Per share |
Net income (loss) available to shareholders (1) |
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Adjusted earnings (1) |
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Adjusted earnings, less notable items (1) |
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Weighted average common shares outstanding - diluted (1) |
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64,820,914 |
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N/A |
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69,765,118 |
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N/A |
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Book value |
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Book value, excluding AOCI |
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Ending common shares outstanding |
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63,503,355 |
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N/A |
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68,278,068 |
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N/A |
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(1) Per share amounts are on a diluted basis and may not recalculate due to rounding. For loss periods, dilutive shares were not included in the calculation as inclusion of such shares would have an anti-dilutive effect. See Non-GAAP and Other Financial Disclosures discussion in this news release. |
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Results by Segment and Corporate & Other (Unaudited, in millions)
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For the Three Months Ended |
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ADJUSTED EARNINGS |
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December 31,
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September 30,
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December 31,
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Annuities |
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Life (1) |
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Run-off (1) |
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Corporate & Other (1) |
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(1) The company uses the term “adjusted loss” throughout this news release to refer to negative adjusted earnings values. |
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Sales (Unaudited, in millions)
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For the Three Months Ended |
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December 31,
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September 30,
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December 31,
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Annuities (1) |
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Life |
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(1) Annuities sales include sales of a fixed index annuity product, which represents |
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Annuities
Adjusted earnings in the Annuities segment were
There were no notable items in the current quarter. The fourth quarter of 2022 included a
On a quarter-over-quarter basis, adjusted earnings, less notable items, were relatively flat. On a sequential basis, adjusted earnings, less notable items, reflect lower fees, higher expenses and a lower underwriting margin.
As mentioned above, annuity sales decreased
Life
Adjusted earnings in the Life segment were
There were no notable items in the current quarter or the fourth quarter of 2022. The third quarter of 2023 included a
On a quarter-over-quarter basis, adjusted earnings, less notable items, reflect a lower underwriting margin, partially offset by higher net investment income and lower expenses. On a sequential basis, adjusted earnings, less notable items, reflect a higher underwriting margin, partially offset by lower net investment income and higher expenses.
As mentioned above, life sales increased
Run-off
The Run-off segment had an adjusted loss of
There were no notable items in the current quarter. The fourth quarter of 2022 included a
On a quarter-over-quarter basis, the adjusted loss, less notable items, reflects a lower underwriting margin, partially offset by higher net investment income. On a sequential basis, the adjusted loss, less notable items, reflects a lower underwriting margin and lower net investment income.
Corporate & Other
Corporate & Other had an adjusted loss of
The current quarter included a
On a quarter-over-quarter basis, the adjusted loss, less notable items, reflects a lower tax benefit and higher expenses. On a sequential basis, the adjusted loss, less notable items, reflects lower expenses, partially offset by a lower tax benefit.
Net Investment Income and Adjusted Net Investment Income (Unaudited, in millions)
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For the Three Months Ended |
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December 31,
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September 30,
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December 31,
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Net investment income |
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Adjusted net investment income |
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Net Investment Income
Net investment income was
The net investment income yield was
Statutory Capital and Liquidity (Unaudited, in billions)
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As of |
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December 31, 2023 (1) |
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September 30,
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December 31,
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Statutory combined total adjusted capital |
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(1) Reflects preliminary statutory results as of December 31, 2023. |
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Capitalization
As of December 31, 2023:
-
TAC(1) decreased to approximately
$6.3 billion
-
Estimated combined RBC ratio(1) increased to approximately
420% , with a reduction in required capital associated with the new statutory requirement providing an effective offset to the decline in TAC
-
Holding company liquid assets were
$1.3 billion
_______________
(1) Reflects preliminary statutory results as of December 31, 2023. |
Earnings Conference Call
Brighthouse Financial will hold a conference call and audio webcast to discuss its financial results for the fourth quarter and full year 2023 at 8:00 a.m. Eastern Time on Tuesday, February 13, 2024. In connection with this call, the company has prepared a presentation for use with investors and other members of the investment community. This presentation is available on the Brighthouse Financial Investor Relations webpage at http://investor.brighthousefinancial.com.
To listen to the audio webcast via the internet and to access the related presentation, please visit the Brighthouse Financial Investor Relations webpage at http://investor.brighthousefinancial.com. To join the conference call via telephone as a participant, please register in advance at https://register.vevent.com/register/BIf1641bbbff1d436f871280ce7989f769.
A replay of the conference call will be made available until Friday, March 1, 2024, on the Brighthouse Financial Investor Relations webpage at http://investor.brighthousefinancial.com.
About Brighthouse Financial, Inc.
Brighthouse Financial, Inc. (Brighthouse Financial) (Nasdaq: BHF) is on a mission to help people achieve financial security. As one of the largest providers of annuities and life insurance in the
(1) Ranked by 2022 admitted assets. Best's Review®: Top 200 U.S. Life/Health Insurers. AM Best, 2023. |
Note Regarding Forward-Looking Statements
This news release and other oral or written statements that we make from time to time may contain information that includes or is based upon forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve substantial risks and uncertainties. We have tried, wherever possible, to identify such statements using words such as "anticipate," "estimate," "expect," "project," "may," "will," "could," "intend," "goal," "target," "guidance," "forecast," "preliminary," "objective," "continue," "aim," "plan," "believe" and other words and terms of similar meaning, or that are tied to future periods, in connection with a discussion of future operating or financial performance. In particular, these include, without limitation, statements relating to future actions, prospective services or products, financial projections, future performance or results of current and anticipated services or products, sales efforts, expenses, the outcome of contingencies such as legal proceedings, as well as trends in operating and financial results.
Any or all forward-looking statements may turn out to be wrong. They can be affected by inaccurate assumptions or by known or unknown risks and uncertainties. Many such factors will be important in determining the actual future results of Brighthouse Financial. These statements are based on current expectations and the current economic environment and involve a number of risks and uncertainties that are difficult to predict. These statements are not guarantees of future performance. Actual results could differ materially from those expressed or implied in the forward-looking statements due to a variety of known and unknown risks, uncertainties and other factors. Although it is not possible to identify all of these risks and factors, they include, among others: differences between actual experience and actuarial assumptions and the effectiveness of our actuarial models; higher risk management costs and exposure to increased market risk due to guarantees within certain of our products; the effectiveness of our variable annuity exposure risk management strategy and the impact of such strategy on volatility in our profitability measures and negative effects on our statutory capital; material differences between actual outcomes and the sensitivities calculated under certain scenarios that we may utilize in connection with our variable annuity risk management strategies; the impact of interest rates on our future ULSG policyholder obligations and net income volatility; the potential material adverse effect of changes in accounting standards, practices or policies applicable to us, including changes in the accounting for long-duration contracts; loss of business and other negative impacts resulting from a downgrade or a potential downgrade in our financial strength or credit ratings; the availability of reinsurance and the ability of the counterparties to our reinsurance or indemnification arrangements to perform their obligations thereunder; heightened competition, including with respect to service, product features, scale, price, actual or perceived financial strength, claims-paying ratings, credit ratings, e-business capabilities and name recognition; our ability to market and distribute our products through distribution channels; any failure of third parties to provide services we need, any failure of the practices and procedures of such third parties and any inability to obtain information or assistance we need from third parties; the ability of our subsidiaries to pay dividends to us, and our ability to pay dividends to our shareholders and repurchase our common stock; the risks associated with climate change; the adverse impact of public health crises, extreme mortality events or similar occurrences on our business and the economy in general; the impact of adverse capital and credit market conditions, including with respect to our ability to meet liquidity needs and access capital; the impact of economic conditions in the capital markets and the
For the reasons described above, we caution you against relying on any forward-looking statements, which should also be read in conjunction with the other cautionary statements included and the risks, uncertainties and other factors identified in our Annual Report on Form 10-K for the year ended December 31, 2022, particularly in the sections entitled "Risk Factors" and "Quantitative and Qualitative Disclosures About Market Risk," as well as in our other subsequent filings with the SEC. Further, any forward-looking statement speaks only as of the date on which it is made, and we undertake no obligation to update or revise any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events, except as otherwise may be required by law.
Non-GAAP and Other Financial Disclosures
Our definitions of non-GAAP and other financial measures may differ from those used by other companies.
Non-GAAP Financial Disclosures
We present certain measures of our performance that are not calculated in accordance with accounting principles generally accepted in
The following non-GAAP financial measures should not be viewed as substitutes for the most directly comparable financial measures calculated in accordance with GAAP:
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Non-GAAP financial measures: |
Most directly comparable GAAP financial measures: |
adjusted earnings |
net income (loss) available to shareholders (1) |
adjusted earnings, less notable items |
net income (loss) available to shareholders (1) |
adjusted revenues |
revenues |
adjusted expenses |
expenses |
adjusted earnings per common share |
earnings per common share, diluted (1) |
adjusted earnings per common share, less notable items |
earnings per common share, diluted (1) |
adjusted return on common equity |
return on common equity (2) |
adjusted return on common equity, less notable items |
return on common equity (2) |
adjusted net investment income |
net investment income |
__________________ |
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(1) Brighthouse uses net income (loss) available to shareholders to refer to net income (loss) available to Brighthouse Financial, Inc.'s common shareholders, and earnings per common share, diluted to refer to net income (loss) available to shareholders per common share. |
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(2) Brighthouse uses return on common equity to refer to return on Brighthouse Financial, Inc.'s common stockholders' equity. |
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Reconciliations to the most directly comparable historical GAAP measures are included for those measures which are presented herein. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are not accessible on a forward-looking basis because we believe it is not possible without unreasonable efforts to provide other than a range of net investment gains and losses and net derivative gains and losses, which can fluctuate significantly within or outside the range and from period to period and may have a material impact on net income (loss) available to shareholders.
Adjusted Earnings, Adjusted Revenues and Adjusted Expenses
Adjusted earnings is a financial measure used by management to evaluate performance and facilitate comparisons to industry results. This financial measure, which may be positive or negative, focuses on our primary businesses by excluding the impact of market volatility, which could distort trends.
Adjusted earnings reflect adjusted revenues less (i) adjusted expenses, (ii) provision for income tax expense (benefit), (iii) net income (loss) attributable to noncontrolling interests and (iv) preferred stock dividends. Provided below are the adjustments to GAAP revenues and GAAP expenses used to calculate adjusted revenues and adjusted expenses, respectively.
The following are significant items excluded from total revenues in calculating the adjusted revenues component of adjusted earnings:
- Net investment gains (losses); and
- Net derivative gains (losses) ("NDGL") except earned income and amortization of premium on derivatives that are hedges of investments or that are used to replicate certain investments, but do not qualify for hedge accounting treatment ("Investment Hedge Adjustments").
The following are significant items excluded from total expenses in calculating the adjusted expenses component of adjusted earnings:
- Change in market risk benefits; and
- Change in fair value of the crediting rate on experience-rated contracts ("Market Value Adjustments").
The provision for income tax related to adjusted earnings is calculated using the statutory tax rate of
Consistent with GAAP guidance for segment reporting, adjusted earnings is also our GAAP measure of segment performance.
Adjusted Earnings per Common Share and Adjusted Return on Common Equity
Adjusted earnings per common share and adjusted return on common equity are measures used by management to evaluate the execution of our business strategy and align such strategy with our shareholders' interests.
Adjusted earnings per common share is defined as adjusted earnings for the period divided by the weighted average number of fully diluted shares of common stock outstanding for the period. The weighted average common shares outstanding used to calculate adjusted earnings per share will differ from such shares used to calculate diluted net income (loss) available to shareholders per common share when the inclusion of dilutive shares has an anti-dilutive effect for one calculation but not for the other.
Adjusted return on common equity is defined as total annual adjusted earnings on a four quarter trailing basis, divided by the simple average of the most recent five quarters of total Brighthouse Financial, Inc.'s common stockholders' equity, excluding AOCI.
Adjusted Net Investment Income
We present adjusted net investment income to measure our performance for management purposes, and we believe it enhances the understanding of our investment portfolio results. Adjusted net investment income represents GAAP net investment income plus Investment Hedge Adjustments.
Other Financial Disclosures
Corporate Expenses
Corporate expenses includes functional department expenses, public company expenses, certain investment expenses, retirement funding and incentive compensation; and excludes establishment costs.
Notable items
Certain of the non-GAAP measures described above may be presented further adjusted to exclude notable items. Notable items reflect the unfavorable (favorable) after-tax impact on our results of certain unanticipated items and events, as well as certain items and events that were anticipated, such as establishment costs. The presentation of notable items and non-GAAP measures, less notable items is intended to help investors better understand our results and to evaluate and forecast those results.
Book Value per Common Share and Book Value per Common Share, excluding AOCI
Brighthouse uses the term "book value" to refer to "Brighthouse Financial, Inc.'s common stockholders' equity, including AOCI." Book value per common share is defined as ending Brighthouse Financial, Inc.'s common stockholders' equity, including AOCI, divided by ending common shares outstanding. Book value per common share, excluding AOCI, is defined as ending Brighthouse Financial, Inc.'s common stockholders' equity, excluding AOCI, divided by ending common shares outstanding.
CTE70
CTE70 is defined as the amount of assets required to satisfy contract holder obligations across market environments in the average of the worst thirty percent of a set of capital market scenarios over the life of the contracts.
CTE98
CTE98 is defined as the amount of assets required to satisfy contract holder obligations across market environments in the average of the worst two percent of a set of capital market scenarios over the life of the contracts.
Holding Company
Holding company means, collectively, Brighthouse Financial, Inc., Brighthouse Holdings, LLC, and Brighthouse Services, LLC.
Holding Company Liquid Assets
Holding company liquid assets include liquid assets in Brighthouse Financial, Inc., Brighthouse Holdings, LLC, and Brighthouse Services, LLC. Liquid assets are comprised of cash and cash equivalents, short-term investments and publicly-traded securities, excluding assets that are pledged or otherwise committed. Assets pledged or otherwise committed include assets held in trust.
Total Adjusted Capital
Total adjusted capital primarily consists of statutory capital and surplus, as well as the statutory asset valuation reserve. When referred to as “combined,” represents that of our insurance subsidiaries as a whole.
Sales
Life insurance sales consist of 100 percent of annualized new premium for term life, first-year paid premium for whole life, universal life, and variable universal life, and total paid premium for indexed universal life. We exclude company-sponsored internal exchanges, corporate-owned life insurance, bank-owned life insurance, and private placement variable universal life.
Annuity sales consist of 100 percent of direct statutory premiums, except for fixed index annuity sales, which represents 100 percent of gross sales on directly written business and the proportion of assumed gross sales under reinsurance agreements. Annuity sales exclude certain internal exchanges. These sales statistics do not correspond to revenues under GAAP, but are used as relevant measures of business activity.
Net Investment Income Yield
Similar to adjusted net investment income, we present net investment income yields as a performance measure we believe enhances the understanding of our investment portfolio results. Net investment income yields are calculated on adjusted net investment income as a percentage of average quarterly asset carrying values. Asset carrying values exclude unrealized gains (losses), collateral received in connection with our securities lending program, freestanding derivative assets and collateral received from derivative counterparties. Investment fee and expense yields are calculated as a percentage of average quarterly asset estimated fair values. Asset estimated fair values exclude collateral received in connection with our securities lending program, freestanding derivative assets and collateral received from derivative counterparties.
Normalized Statutory Earnings (Loss)
Normalized statutory earnings (loss) is used by management to measure our insurance companies’ ability to pay future distributions and is reflective of whether our hedging program functions as intended. Normalized statutory earnings (loss) is calculated as statutory pre-tax net gain (loss) from operations adjusted for the favorable or unfavorable impacts of (i) net realized capital gains (losses), (ii) the change in total asset requirement at CTE98, net of the change in our variable annuity reserves, and (iii) unrealized gains (losses) associated with our variable annuities and Shield hedging programs and other equity risk management strategies. Normalized statutory earnings (loss) may be further adjusted for certain unanticipated items that impact our results in order to help management and investors better understand, evaluate and forecast those results.
Risk-Based Capital Ratio
The risk-based capital ratio is a method of measuring an insurance company’s capital, taking into consideration its relative size and risk profile, in order to ensure compliance with minimum regulatory capital requirements set by the National Association of Insurance Commissioners. When referred to as “combined,” represents that of our insurance subsidiaries as a whole. The reporting of our combined risk-based capital ratio is not intended for the purpose of ranking any insurance company or for use in connection with any marketing, advertising or promotional activities.
Condensed Statements of Operations (Unaudited, in millions)
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For the Three Months Ended |
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Revenues |
|
December 31,
|
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September 30,
|
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December 31,
|
Premiums |
|
|
|
|
|
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Universal life and investment-type product policy fees |
|
546 |
|
542 |
|
549 |
Net investment income |
|
1,207 |
|
1,202 |
|
1,049 |
Other revenues |
|
135 |
|
125 |
|
100 |
Revenues before NIGL and NDGL |
|
2,114 |
|
2,063 |
|
1,865 |
Net investment gains (losses) |
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(33) |
|
(53) |
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(69) |
Net derivative gains (losses) |
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(681) |
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(840) |
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(1,923) |
Total revenues |
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Expenses |
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Policyholder benefits and claims |
|
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Interest credited to policyholder account balances |
|
525 |
|
426 |
|
401 |
Amortization of DAC and VOBA |
|
152 |
|
155 |
|
155 |
Change in market risk benefits |
|
663 |
|
(1,064) |
|
(1,479) |
Interest expense on debt |
|
39 |
|
38 |
|
39 |
Other expenses |
|
485 |
|
435 |
|
450 |
Total expenses |
|
2,574 |
|
580 |
|
(167) |
Income (loss) before provision for income tax |
|
(1,174) |
|
590 |
|
40 |
Provision for income tax expense (benefit) |
|
(258) |
|
109 |
|
(97) |
Net income (loss) |
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(916) |
|
481 |
|
137 |
Less: Net income (loss) attributable to noncontrolling interests |
|
1 |
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2 |
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1 |
Net income (loss) attributable to Brighthouse Financial, Inc. |
|
(917) |
|
479 |
|
136 |
Less: Preferred stock dividends |
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25 |
|
26 |
|
26 |
Net income (loss) available to Brighthouse Financial, Inc.’s common shareholders |
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Condensed Balance Sheets (Unaudited, in millions)
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As of |
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ASSETS |
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December 31,
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September 30,
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December 31,
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Investments: |
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Fixed maturity securities available-for-sale |
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Equity securities |
|
102 |
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90 |
|
89 |
Mortgage loans |
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22,508 |
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22,682 |
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22,936 |
Policy loans |
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1,331 |
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1,311 |
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1,282 |
Limited partnerships and limited liability companies |
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4,946 |
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4,931 |
|
4,775 |
Short-term investments |
|
1,169 |
|
1,003 |
|
1,081 |
Other invested assets |
|
4,409 |
|
3,210 |
|
2,852 |
Total investments |
|
115,456 |
|
108,660 |
|
108,592 |
Cash and cash equivalents |
|
3,851 |
|
3,839 |
|
4,115 |
Accrued investment income |
|
1,183 |
|
1,143 |
|
885 |
Reinsurance recoverables |
|
19,213 |
|
18,597 |
|
18,019 |
Premiums and other receivables |
|
548 |
|
469 |
|
529 |
DAC and VOBA |
|
4,872 |
|
4,919 |
|
5,084 |
Current income tax recoverable |
|
27 |
|
31 |
|
38 |
Deferred income tax asset |
|
1,893 |
|
2,121 |
|
1,736 |
Market risk benefit assets |
|
656 |
|
694 |
|
483 |
Other assets |
|
370 |
|
368 |
|
401 |
Separate account assets |
|
88,271 |
|
82,675 |
|
84,965 |
Total assets |
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LIABILITIES AND EQUITY |
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Liabilities |
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Future policy benefits |
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Policyholder account balances |
|
81,068 |
|
78,371 |
|
73,527 |
Market risk benefit liabilities |
|
10,323 |
|
8,830 |
|
10,389 |
Other policy-related balances |
|
3,836 |
|
3,806 |
|
4,098 |
Payables for collateral under securities loaned and other transactions |
|
3,670 |
|
3,941 |
|
4,560 |
Long-term debt |
|
3,156 |
|
3,157 |
|
3,156 |
Other liabilities |
|
8,439 |
|
8,198 |
|
7,057 |
Separate account liabilities |
|
88,271 |
|
82,675 |
|
84,965 |
Total liabilities |
|
231,332 |
|
219,382 |
|
219,249 |
Equity |
|
|
|
|
|
|
Preferred stock, at par value |
|
— |
|
— |
|
— |
Common stock, at par value |
|
1 |
|
1 |
|
1 |
Additional paid-in capital |
|
14,004 |
|
14,022 |
|
14,075 |
Retained earnings (deficit) |
|
(1,507) |
|
(590) |
|
(395) |
Treasury stock |
|
(2,309) |
|
(2,248) |
|
(2,042) |
Accumulated other comprehensive income (loss) |
|
(5,246) |
|
(7,116) |
|
(6,106) |
Total Brighthouse Financial, Inc.’s stockholders’ equity |
|
4,943 |
|
4,069 |
|
5,533 |
Noncontrolling interests |
|
65 |
|
65 |
|
65 |
Total equity |
|
5,008 |
|
4,134 |
|
5,598 |
Total liabilities and equity |
|
|
|
|
|
|
Reconciliation of Net Income (Loss) Available to Shareholders to Adjusted Earnings and Adjusted Earnings, Less Notable Items, and Reconciliation of Net Income (Loss) Available to Shareholders per Common Share to Adjusted Earnings per Common Share and Adjusted Earnings, Less Notable Items per Common Share (Unaudited, in millions except per share data)
|
|
For the Three Months Ended |
||||
ADJUSTED EARNINGS, LESS NOTABLE ITEMS |
|
December 31,
|
|
September 30,
|
|
December 31,
|
Net income (loss) available to shareholders |
|
|
|
|
|
|
Less: Net investment gains (losses) |
|
(33) |
|
(53) |
|
(69) |
Less: Net derivative gains (losses), excluding investment hedge adjustments |
|
(700) |
|
(865) |
|
(1,956) |
Less: Change in market risk benefits |
|
(663) |
|
1,064 |
|
1,479 |
Less: Market value adjustments |
|
(21) |
|
15 |
|
(3) |
Less: Provision for income tax (expense) benefit on reconciling adjustments |
|
298 |
|
(34) |
|
114 |
Adjusted earnings |
|
177 |
|
326 |
|
545 |
Less: Notable items |
|
(12) |
|
51 |
|
263 |
Adjusted earnings, less notable items |
|
|
|
|
|
|
|
|
|
|
|
|
|
ADJUSTED EARNINGS, LESS NOTABLE ITEMS PER COMMON SHARE (1) |
|
|
|
|
|
|
Net income (loss) available to shareholders per common share |
|
|
|
|
|
|
Less: Net investment gains (losses) |
|
(0.51) |
|
(0.81) |
|
(0.99) |
Less: Net derivative gains (losses), excluding investment hedge adjustments |
|
(10.92) |
|
(13.16) |
|
(28.04) |
Less: Change in market risk benefits |
|
(10.34) |
|
16.18 |
|
21.20 |
Less: Market value adjustments |
|
(0.33) |
|
0.23 |
|
(0.04) |
Less: Provision for income tax (expense) benefit on reconciling adjustments |
|
4.65 |
|
(0.52) |
|
1.63 |
Less: Impact of inclusion of dilutive shares |
|
0.03 |
|
— |
|
— |
Adjusted earnings per common share |
|
2.73 |
|
4.97 |
|
7.81 |
Less: Notable items |
|
(0.19) |
|
0.78 |
|
3.77 |
Adjusted earnings, less notable items per common share |
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Per share calculations are on a diluted basis and may not recalculate or foot due to rounding. For loss periods, dilutive shares were not included in the calculation as inclusion of such shares would have an anti-dilutive effect. See Non-GAAP and Other Financial Disclosures discussion in this news release. |
||||||
Reconciliation of Net Investment Income to Adjusted Net Investment Income (Unaudited, in millions)
|
|
For the Three Months Ended |
||||
|
|
December 31,
|
|
September 30,
|
|
December 31,
|
Net investment income |
|
|
|
|
|
|
Less: Investment hedge adjustments |
|
(19) |
|
(25) |
|
(33) |
Adjusted net investment income |
|
|
|
|
|
|
Notable Items (Unaudited, in millions)
|
|
For the Three Months Ended |
||||
NOTABLE ITEMS IMPACTING ADJUSTED EARNINGS |
|
December 31,
|
|
September 30,
|
|
December 31,
|
Actuarial items and other insurance adjustments |
|
$— |
|
|
|
|
Establishment costs |
|
— |
|
— |
|
15 |
Debt repayment costs |
|
— |
|
— |
|
— |
Prior year tax matters |
|
— |
|
— |
|
(51) |
Legal matters |
|
12 |
|
— |
|
— |
Total notable items (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
NOTABLE ITEMS BY SEGMENT AND CORPORATE & OTHER |
|
|
|
|
|
|
Annuities |
|
$— |
|
|
|
|
Life |
|
— |
|
71 |
|
— |
Run-off |
|
— |
|
(94) |
|
(271) |
Corporate & Other |
|
12 |
|
— |
|
(36) |
Total notable items (1) |
|
|
|
|
|
|
|
||||||
(1) See Non-GAAP and Other Financial Disclosures discussion in this news release. |
||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20240212153048/en/
FOR INVESTORS
Dana Amante
(980) 949-3073
damante@brighthousefinancial.com
FOR MEDIA
Deon Roberts
(980) 949-3071
deon.roberts@brighthousefinancial.com
Source: Brighthouse Financial, Inc.
FAQ
What was Brighthouse Financial's net loss available to shareholders in Q4 2023?
How much common stock did Brighthouse Financial repurchase in 2023?
What were the annuity sales for Brighthouse Financial in 2023?
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How much were the total subsidiary dividends paid to the holding company in Q4 2023?
