Brighthouse Financial Announces Fourth Quarter and Full Year 2024 Results
Brighthouse Financial (BHF) reported fourth quarter 2024 net income of $646 million ($10.79 per diluted share), compared to a net loss of $942 million in Q4 2023. The company's adjusted earnings for Q4 2024 were $304 million ($5.07 per diluted share).
Key highlights include: annuity sales of $10.0 billion for full year 2024, driven by record Shield Level Annuities sales; record life sales of $120 million in 2024; and $250 million in share repurchases during 2024, reducing outstanding shares by approximately 8%. The company maintained strong capital positions with an estimated combined RBC ratio of approximately 400% and holding company liquid assets of $1.1 billion.
Corporate expenses decreased 7% compared to 2023, and the company completed a reinsurance transaction for legacy universal life and variable universal life products while transitioning to standalone hedging for Shield Level Annuities.
Brighthouse Financial (BHF) ha riportato un utile netto del quarto trimestre 2024 di 646 milioni di dollari (10,79 dollari per azione diluita), rispetto a una perdita netta di 942 milioni di dollari nel quarto trimestre 2023. Gli utili rettificati dell'azienda per il quarto trimestre 2024 ammontano a 304 milioni di dollari (5,07 dollari per azione diluita).
Tra i punti salienti ci sono: vendite di rendite di 10,0 miliardi di dollari per l'intero anno 2024, guidate da vendite record di rendite Shield Level; vendite di vita record di 120 milioni di dollari nel 2024; e 250 milioni di dollari in riacquisti di azioni durante il 2024, riducendo le azioni in circolazione di circa l'8%. L'azienda ha mantenuto solide posizioni di capitale con un rapporto RBC combinato stimato di circa il 400% e attivi liquidi della holding di 1,1 miliardi di dollari.
Le spese aziendali sono diminuite del 7% rispetto al 2023, e l'azienda ha completato una transazione di riassicurazione per prodotti di vita universale legacy e di vita variabile universale, mentre si stava adattando a una copertura indipendente per le rendite Shield Level.
Brighthouse Financial (BHF) reportó una ganancia neta en el cuarto trimestre de 2024 de 646 millones de dólares (10,79 dólares por acción diluida), en comparación con una pérdida neta de 942 millones de dólares en el cuarto trimestre de 2023. Las ganancias ajustadas de la compañía para el cuarto trimestre de 2024 fueron de 304 millones de dólares (5,07 dólares por acción diluida).
Los aspectos más destacados incluyen: ventas de anualidades de 10,0 mil millones de dólares para todo el año 2024, impulsadas por ventas récord de Anualidades Shield Level; ventas de vida récord de 120 millones de dólares en 2024; y 250 millones de dólares en recompra de acciones durante 2024, reduciendo las acciones en circulación en aproximadamente un 8%. La compañía mantuvo posiciones de capital sólidas con un ratio RBC combinado estimado de aproximadamente el 400% y activos líquidos de la empresa matriz por 1,1 mil millones de dólares.
Los gastos corporativos disminuyeron un 7% en comparación con 2023, y la compañía completó una transacción de reaseguro para productos de vida universal heredados y de vida variable universal mientras hacía la transición a una cobertura independiente para Anualidades Shield Level.
Brighthouse Financial (BHF)는 2024년 4분기 순이익이 6억4600만 달러(희석주당 10.79달러)에 달했다고 보고했으며, 2023년 4분기에는 9억4200만 달러의 순손실을 기록했습니다. 회사의 조정된 수익은 2024년 4분기에 3억0400만 달러(희석주당 5.07달러)였습니다.
주요 내용으로는 2024년 전체 연도 연금 판매가 100억 달러로, 기록적인 Shield Level Annuities 판매로 촉진되었고; 2024년에 생명 보험 판매가 1억2000만 달러에 달하는 기록을 세웠습니다; 그리고 2024년에 2억5000만 달러의 자사주 매입이 이루어져 약 8%의 유통 주식 수가 감소했습니다. 회사는 약 400%의 추정 결합 RBC 비율과 11억 달러의 매각 회사 유동 자산으로 강력한 자본 상태를 유지했습니다.
기업 비용은 2023년 대비 7% 감소하였으며, 회사는 유산형 유니버설 생명 및 변동형 유니버설 생명 보험 상품에 대한 재보험 거래를 완료하고, Shield Level Annuities에 대한 독립적인 헤징으로 전환하였습니다.
Brighthouse Financial (BHF) a annoncé un bénéfice net de 646 millions de dollars (10,79 dollars par action diluée) pour le quatrième trimestre 2024, contre une perte nette de 942 millions de dollars au quatrième trimestre 2023. Les bénéfices ajustés de l'entreprise pour le quatrième trimestre 2024 s'élèvent à 304 millions de dollars (5,07 dollars par action diluée).
Les points clés incluent : ventes d'annuités de 10,0 milliards de dollars pour l'année 2024, soutenues par des ventes record d'Annuities Shield Level ; des ventes de vie record de 120 millions de dollars en 2024 ; et 250 millions de dollars de rachat d'actions au cours de 2024, réduisant le nombre d'actions en circulation d'environ 8%. L'entreprise a maintenu des positions de capital solides avec un ratio RBC combiné estimé à environ 400% et des actifs liquides de la société holding s'élevant à 1,1 milliard de dollars.
Les dépenses corporatives ont diminué de 7% par rapport à 2023 et l'entreprise a conclu une transaction de réassurance pour des produits de vie universels anciens et de vie variable universelle tout en transitionnant vers une couverture autonome pour les Annuities Shield Level.
Brighthouse Financial (BHF) berichtete für das vierte Quartal 2024 einen Nettogewinn von 646 Millionen US-Dollar (10,79 US-Dollar pro verwässerter Aktie), verglichen mit einem Nettverlust von 942 Millionen US-Dollar im vierten Quartal 2023. Die bereinigten Erträge des Unternehmens für das vierte Quartal 2024 betrugen 304 Millionen US-Dollar (5,07 US-Dollar pro verwässerter Aktie).
Zu den wichtigsten Eckdaten gehören: Rentenverkäufe von 10,0 Milliarden US-Dollar für das gesamte Jahr 2024, die durch Rekordverkäufe von Shield Level Annuities angetrieben wurden; Rekordverkäufe im Lebensversicherungsbereich von 120 Millionen US-Dollar im Jahr 2024; und 250 Millionen US-Dollar an Aktienrückkäufen im Jahr 2024, was die ausstehenden Aktien um etwa 8% reduzierte. Das Unternehmen hielt eine starke Kapitalposition mit einem geschätzten kombinierten RBC-Verhältnis von etwa 400% und liquiden Mitteln in Höhe von 1,1 Milliarden US-Dollar.
Die Unternehmensausgaben sanken im Vergleich zu 2023 um 7%, und das Unternehmen schloss eine Rückversicherungstransaktion für ältere Universal Life- und Variable Universal Life-Produkte ab, während es einen Übergang zu einer eigenständigen Hedging-Strategie für Shield Level Annuities vollzog.
- Net income improved to $646 million in Q4 2024 from a loss of $942 million in Q4 2023
- Record life sales of $120 million in 2024, up 18% year-over-year
- Share repurchases of $250 million in 2024, reducing outstanding shares by 8%
- Corporate expenses reduced by 7% compared to 2023
- Strong capital position with 400% RBC ratio and $1.1 billion in liquid assets
- Annuity sales decreased 18% quarter-over-quarter and 5% year-over-year
- Run-off segment reported adjusted loss of $27 million in Q4 2024
Insights
The Q4 2024 results reveal Brighthouse Financial's strategic execution success and financial resilience. The dramatic swing to
Three key metrics deserve investor attention: First, the record Shield Level Annuities sales amid overall declining annuity sales (
Notably, the increase in adjusted net investment income yield to
The company's strategic focus on expense management, evidenced by the
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Estimated combined risk-based capital ("RBC") ratio of approximately
400% ; reflects$100 million -
Holding company liquid assets of
$1.1 billion $1.0 billion -
The company repurchased
$250 million 8% ; repurchased an additional approximately$25 million -
Annuity sales for full year 2024 of
$10.0 billion -
Record life sales for full year 2024 of
$120 million -
Fourth quarter 2024 net income available to shareholders of
$646 million $10.79 -
Fourth quarter 2024 adjusted earnings, less notable items*, of
$352 million $5.88
Fourth Quarter and Full Year 2024 Results
The company reported net income available to shareholders of
The company ended the fourth quarter of 2024 with common stockholders' equity ("book value") of
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* 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 2024 Brighthouse Financial, Inc. Financial Supplement and/or the Fourth Quarter and Full Year 2024 Brighthouse Financial, Inc. Earnings Call Presentation (which are available on the Brighthouse Financial Investor Relations webpage at http://investor.brighthousefinancial.com). Additional information regarding notable items can be found on the last page of this news release. |
For the fourth quarter of 2024, the company reported adjusted earnings* of
Adjusted earnings for the quarter reflect a
Corporate expenses in the fourth quarter of 2024 were
The company's annuity sales decreased
On a full year basis, the company reported net income available to shareholders of
During the fourth quarter of 2024, the company repurchased
“During the quarter, we continued to make progress on our capital-focused strategic initiatives, including completing a reinsurance transaction with a third party to reinsure a legacy block of universal life and variable universal life products and fully transitioning to hedging all new business for our Shield Level Annuities Product Suite on a standalone basis,” said Eric Steigerwalt, president and CEO, Brighthouse Financial. “Additionally, our estimated combined RBC ratio as of the end of the year was approximately
"We also made further progress toward the execution of our focused strategy in 2024," Steigerwalt continued. "Our corporate expenses were down
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, 2024 |
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December 31, 2023 |
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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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59,823,854 |
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N/A |
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64,820,914 |
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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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58,629,049 |
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N/A |
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63,503,355 |
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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 (Unaudited, in millions)
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For the Three Months Ended |
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ADJUSTED EARNINGS (LOSS) |
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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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$— |
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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
The current quarter included a
On a quarter-over-quarter basis, adjusted earnings, less notable items, reflect higher fees and higher net investment income. On a sequential basis, adjusted earnings, less notable items, reflect higher net investment income, partially offset by a lower underwriting margin.
As mentioned above, the company's 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 2023. The third quarter of 2024 included a
On a quarter-over-quarter basis, adjusted earnings, less notable items, reflect a higher underwriting margin and higher net investment income. On a sequential basis, adjusted earnings, less notable items, reflect higher net investment income and a higher underwriting margin, partially offset by higher expenses.
As mentioned above, the company reported record life sales in 2024. Life sales increased
Run-off
The Run-off segment had an adjusted loss of
There were no notable items in the current quarter or the fourth quarter of 2023. The third quarter of 2024 included a
On a quarter-over-quarter basis, the adjusted loss, less notable items, reflects higher net investment income and lower expenses, partially offset by a lower underwriting margin. On a sequential basis, the adjusted loss, less notable items, reflects higher net investment income and a higher underwriting margin.
Corporate & Other
The Corporate & Other segment had break-even adjusted earnings in the current quarter, compared with an adjusted loss of
There were no notable items in the current quarter or the third quarter of 2024. The fourth quarter of 2023 included a
On a quarter-over-quarter basis, adjusted earnings, less notable items, reflect lower expenses and a higher tax benefit. On a sequential basis, adjusted earnings reflect a lower tax benefit, partially offset by lower expenses.
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 adjusted net investment income yield* was
Statutory Capital and Liquidity (Unaudited, in billions)
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As of |
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December 31,
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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, 2024. |
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Capitalization
As of December 31, 2024:
-
Statutory combined total adjusted capital ("TAC") of approximately
$5.4 billion 400% (1) reflect the$100 million -
Holding company liquid assets of
$1.1 billion $1.0 billion
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(1) Reflects preliminary statutory results as of December 31, 2024. |
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 2024 at 8:00 a.m. Eastern Time on Wednesday, February 12, 2025. 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/BI95610f62e71f4d29ad6284211586c8cc.
A replay of the conference call will be made available until Friday, February 28, 2025, 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 2023 admitted assets. Best's Review®: Top 200 U.S. Life/Health Insurers. AM Best, 2024. |
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 impacts of such strategy on volatility in our profitability measures and the 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, 2023, 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 |
adjusted net investment income yield |
net investment income yield |
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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. The company uses the term “adjusted loss” throughout this news release to refer to negative adjusted earnings values.
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 items are excluded from total revenues in calculating the adjusted revenues component of adjusted earnings:
- Net investment gains (losses); and
- Net derivative gains (losses) ("NDGL"), excluding 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 items are 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
Adjusted net investment income is used by management to measure our performance, 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.
Adjusted Net Investment Income Yield
Similar to adjusted net investment income, adjusted net investment income yield is used by management as a performance measure that we believe enhances the understanding of our investment portfolio results. Adjusted net investment income yield represents 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.
Other Financial Disclosures
Corporate Expenses
Corporate expenses includes functional department expenses, public company expenses, certain investment expenses, retirement funding and incentive compensation.
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. 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.
Normalized Statutory Earnings (Loss)
Normalized statutory earnings (loss) is used by management to measure our insurance companies’ ability to pay future distributions and incorporates the effectiveness of our hedging program as well as other factors related to our business. 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) before capital gains tax (excluding gains (losses) and taxes transferred to the interest maintenance reserve), (ii) the change in total asset requirement at CTE98, net of the change in our variable annuity reserves, and (iii) pre-tax unrealized gains (losses) associated with our variable annuities and Shield hedges, net of reinsurance, 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) |
||||||
|
|
For the Three Months Ended |
||||
Revenues |
|
December 31,
|
|
September 30,
|
|
December 31,
|
Premiums |
|
|
|
|
|
|
Universal life and investment-type product policy fees |
|
540 |
|
560 |
|
546 |
Net investment income |
|
1,373 |
|
1,288 |
|
1,207 |
Other revenues |
|
150 |
|
143 |
|
135 |
Revenues before NIGL and NDGL |
|
2,270 |
|
2,171 |
|
2,114 |
Net investment gains (losses) |
|
(73) |
|
(60) |
|
(33) |
Net derivative gains (losses) |
|
(992) |
|
(93) |
|
(681) |
Total revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses |
|
|
|
|
|
|
Policyholder benefits and claims |
|
|
|
|
|
|
Interest credited to policyholder account balances |
|
569 |
|
556 |
|
525 |
Amortization of DAC and VOBA |
|
148 |
|
150 |
|
152 |
Change in market risk benefits |
|
(1,487) |
|
610 |
|
663 |
Interest expense on debt |
|
38 |
|
38 |
|
39 |
Other expenses |
|
441 |
|
454 |
|
485 |
Total expenses |
|
371 |
|
1,830 |
|
2,574 |
Income (loss) before provision for income tax |
|
834 |
|
188 |
|
(1,174) |
Provision for income tax expense (benefit) |
|
162 |
|
10 |
|
(258) |
Net income (loss) |
|
672 |
|
178 |
|
(916) |
Less: Net income (loss) attributable to noncontrolling interests |
|
1 |
|
2 |
|
1 |
Net income (loss) attributable to Brighthouse Financial, Inc. |
|
671 |
|
176 |
|
(917) |
Less: Preferred stock dividends |
|
25 |
|
26 |
|
25 |
Net income (loss) available to Brighthouse Financial, Inc.’s common shareholders |
|
|
|
|
|
|
Condensed Balance Sheets (Unaudited, in millions) |
||||||
|
|
As of |
||||
ASSETS |
|
December 31,
|
|
September 30,
|
|
December 31,
|
Investments: |
|
|
|
|
|
|
Fixed maturity securities available-for-sale |
|
|
|
|
|
|
Equity securities |
|
77 |
|
87 |
|
102 |
Mortgage loans |
|
23,286 |
|
22,938 |
|
22,508 |
Policy loans |
|
2,024 |
|
1,387 |
|
1,331 |
Limited partnerships and limited liability companies |
|
4,827 |
|
4,870 |
|
4,946 |
Short-term investments |
|
1,868 |
|
1,812 |
|
1,169 |
Other invested assets |
|
5,250 |
|
4,462 |
|
4,409 |
Total investments |
|
117,387 |
|
118,854 |
|
115,456 |
Cash and cash equivalents |
|
5,045 |
|
5,630 |
|
3,851 |
Accrued investment income |
|
1,277 |
|
2,083 |
|
1,183 |
Reinsurance recoverables |
|
20,515 |
|
20,085 |
|
19,213 |
Premiums and other receivables |
|
611 |
|
607 |
|
548 |
DAC and VOBA |
|
4,710 |
|
4,745 |
|
4,872 |
Current income tax recoverable |
|
19 |
|
28 |
|
27 |
Deferred income tax asset |
|
1,875 |
|
1,737 |
|
1,893 |
Market risk benefit assets |
|
1,092 |
|
750 |
|
656 |
Other assets |
|
370 |
|
324 |
|
370 |
Separate account assets |
|
85,636 |
|
90,313 |
|
88,271 |
Total assets |
|
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
Future policy benefits |
|
|
|
|
|
|
Policyholder account balances |
|
87,989 |
|
87,678 |
|
81,068 |
Market risk benefit liabilities |
|
8,329 |
|
9,580 |
|
10,323 |
Other policy-related balances |
|
3,878 |
|
3,853 |
|
3,836 |
Payables for collateral under securities loaned and other transactions |
|
3,891 |
|
3,764 |
|
3,670 |
Long-term debt |
|
3,155 |
|
3,155 |
|
3,156 |
Other liabilities |
|
9,160 |
|
8,442 |
|
8,439 |
Separate account liabilities |
|
85,636 |
|
90,313 |
|
88,271 |
Total liabilities |
|
233,513 |
|
239,566 |
|
231,332 |
Equity |
|
|
|
|
|
|
Preferred stock, at par value |
|
— |
|
— |
|
— |
Common stock, at par value |
|
1 |
|
1 |
|
1 |
Additional paid-in capital |
|
13,927 |
|
13,953 |
|
14,004 |
Retained earnings (deficit) |
|
(1,119) |
|
(1,790) |
|
(1,507) |
Treasury stock |
|
(2,572) |
|
(2,512) |
|
(2,309) |
Accumulated other comprehensive income (loss) |
|
(5,278) |
|
(4,127) |
|
(5,246) |
Total Brighthouse Financial, Inc.’s stockholders’ equity |
|
4,959 |
|
5,525 |
|
4,943 |
Noncontrolling interests |
|
65 |
|
65 |
|
65 |
Total equity |
|
5,024 |
|
5,590 |
|
5,008 |
Total liabilities and equity |
|
|
|
|
|
|
Reconciliation of Net Income (Loss) Available to Shareholders to Adjusted Earnings (Loss) and Adjusted Earnings, Less Notable Items, and Reconciliation of Net Income (Loss) Available to Shareholders per Common Share to Adjusted Earnings (Loss) per Common Share and Adjusted Earnings, Less Notable Items per Common Share (Unaudited, in millions except per share data) |
||||||||||
|
|
For the Three Months Ended |
|
For the Year Ended |
||||||
ADJUSTED EARNINGS, LESS NOTABLE ITEMS |
|
December 31,
|
|
September 30,
|
|
December 31,
|
|
December 31,
|
|
December 31,
|
Net income (loss) available to shareholders |
|
|
|
|
|
|
|
|
|
|
Less: Net investment gains (losses) |
|
(73) |
|
(60) |
|
(33) |
|
(295) |
|
(246) |
Less: Net derivative gains (losses), excluding investment hedge adjustments |
|
(995) |
|
(99) |
|
(700) |
|
(3,699) |
|
(4,012) |
Less: Change in market risk benefits |
|
1,487 |
|
(610) |
|
(663) |
|
2,673 |
|
1,507 |
Less: Market value adjustments |
|
14 |
|
(11) |
|
(21) |
|
13 |
|
(12) |
Less: Provision for income tax (expense) benefit on reconciling adjustments |
|
(91) |
|
163 |
|
298 |
|
275 |
|
580 |
Adjusted earnings (loss) |
|
304 |
|
767 |
|
177 |
|
1,319 |
|
969 |
Less: Notable items |
|
(48) |
|
524 |
|
(12) |
|
110 |
|
39 |
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) |
|
(1.22) |
|
(0.98) |
|
(0.51) |
|
(4.79) |
|
(3.73) |
Less: Net derivative gains (losses), excluding investment hedge adjustments |
|
(16.63) |
|
(1.62) |
|
(10.92) |
|
(60.05) |
|
(60.78) |
Less: Change in market risk benefits |
|
24.86 |
|
(10.01) |
|
(10.34) |
|
43.39 |
|
22.83 |
Less: Market value adjustments |
|
0.23 |
|
(0.18) |
|
(0.33) |
|
0.21 |
|
(0.18) |
Less: Provision for income tax (expense) benefit on reconciling adjustments |
|
(1.52) |
|
2.67 |
|
4.65 |
|
4.46 |
|
8.79 |
Less: Impact of inclusion of dilutive shares |
|
— |
|
— |
|
0.03 |
|
— |
|
0.10 |
Adjusted earnings (loss) per common share |
|
5.07 |
|
12.58 |
|
2.73 |
|
21.40 |
|
14.58 |
Less: Notable items |
|
(0.80) |
|
8.60 |
|
(0.19) |
|
1.79 |
|
0.59 |
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. 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 |
||||
ADJUSTED NET INVESTMENT INCOME (1) |
|
December 31,
|
|
September 30,
|
|
December 31,
|
Net investment income |
|
|
|
|
|
|
Less: Investment hedge adjustments |
|
(3) |
|
(6) |
|
(19) |
Adjusted net investment income |
|
|
|
|
|
|
| Reconciliation of Investment Income Yield to Adjusted Net Investment Income Yield | ||||||
|
|
For the Three Months Ended |
||||
ADJUSTED NET INVESTMENT INCOME YIELD (1) |
|
June 30,
|
|
March 31,
|
|
June 30,
|
Investment income yield |
|
|
|
|
|
|
Investment fees and expenses |
|
(0.13)% |
|
(0.14)% |
|
(0.13)% |
Adjusted net investment income yield |
|
|
|
|
|
|
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 |
|
|
|
|
|
$— |
Legal matters |
|
— |
|
— |
|
12 |
Total notable items (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
NOTABLE ITEMS BY SEGMENT |
|
|
|
|
|
|
Annuities |
|
|
|
|
|
$— |
Life |
|
— |
|
66 |
|
— |
Run-off |
|
— |
|
(570) |
|
— |
Corporate & Other |
|
— |
|
— |
|
12 |
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/20250211529918/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
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