Investors in Brighthouse Financial, Inc. (BHF) need to pay close attention to the stock based on moves in the options market lately. That is because the Nov. 21, 2025 $30 Call had some of the highest implied volatility of all equity options today.What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It co ...

The S&P 500 Index ($SPX) (SPY) today is up +0.13%, the Dow Jones Industrials Index ($DOWI) (DIA) is up +0.11%, and the Nasdaq 100 Index ($IUXX) (QQQ) is up +0.19%.  September E-mini S&P futures (ESU25) are up +0.07%, and September E-mini Nasdaq futures (NQU25) are up +0.17%. Stock indexes today are slightly higher, finding support from a rally in European stocks to a 1-week high.  Stocks are also underpinned by the prospect of a more accommodative Federal Reserve, as the markets have fully priced in a 25 bp ...

Brighthouse Financial (NASDAQ:BHF) stock was surging as the private capital group Aquarian was said to be in late-stage discussions with investors for financing its takeover of the insurer. Aquarian is planning to submit a final offer for the Charlotte, NC-based insurer ...

Brighthouse Financial shares surged 14% after reports emerged that Aquarian Holdings, a New York-based private capital group, is advancing plans to acquire the US life insurer. The Financial Times rep... ...

Core Viewpoint - Brighthouse Financial, Inc. (BHF) is experiencing a short-term bearish trend as it trades below its 50-day simple moving average (SMA), which is a key indicator for identifying support and resistance levels [1] Price Performance - BHF shares have declined by 2.8% year-to-date, while the industry has seen a decline of 1.6%. In contrast, the Finance sector and the Zacks S&P 500 Composite have increased by 10.6% and 8.9%, respectively [2] - The market capitalization of Brighthouse Financial is $2.7 billion, with an average trading volume of 0.8 million shares over the last three months [2] Valuation Metrics - BHF shares are trading at a price-to-book value of 0.47X, significantly lower than the industry average of 1.87X, indicating that the shares are affordable compared to peers [4] Sales Performance - Life insurance sales grew by 17.8% in Q2 2025, reaching $33 million, while annuity sales rose by 8.4% year-over-year to $2.6 billion, driven by strong demand for fixed annuities [7][14] - Total expenses surged by 68% to $3.5 billion in the first half of 2025, with long-term debt reaching $3.2 billion [7] Revenue and Earnings Projections - The Zacks Consensus Estimate for 2025 revenues is $8.9 billion, reflecting a year-over-year improvement of 1.5%. The current-year earnings estimate is $18.24 per share, down 7.1% from the previous year [8] - For 2026, earnings per share and revenues are projected to increase by 19.4% and 3%, respectively [8] Analyst Sentiment - The Zacks Consensus Estimate for 2025 earnings has decreased by 0.8% over the past week, while the estimate for 2026 has increased by 0.2% [9] Target Price and Upside Potential - The average price target for BHF, based on short-term projections from 10 analysts, is $56.90 per share, suggesting a potential upside of 23.4% from the last closing price [10] Strategic Initiatives - Brighthouse Financial is focused on expanding life insurance sales, enhancing annuity products, and extending its distribution reach to capture growth in the individual insurance market [13] - The company is reshaping its product lineup to meet changing client demands, including the introduction of SecureKey fixed indexed annuities and SmartGuard Plus, its first universal life product tied to market indexes [16] Financial Challenges - Despite solid fundamentals, Brighthouse Financial faces challenges from rising expenses, higher policyholder claims, and weakening margins, with total expenses increasing significantly [18] - The company's long-term debt has risen to $3.2 billion, resulting in a debt-to-equity ratio of 55%, which is considerably higher than the industry average of 16.7% [19] Conclusion - Brighthouse Financial is gaining traction through strong annuity sales and improving life insurance momentum, but rising expenses and high debt levels present notable challenges that could impact long-term performance [20]

Part I — Financial Information [Financial Statements](index=4&type=section&id=Item%201.%20Consolidated%20Financial%20Statements) Presents Brighthouse Financial's unaudited interim condensed consolidated financial statements for periods ending June 30, 2025 and 2024 [Interim Condensed Consolidated Balance Sheets](index=4&type=section&id=Interim%20Condensed%20Consolidated%20Balance%20Sheets) - Total assets increased to **$242.6 billion** as of June 30, 2025, from **$238.5 billion** at December 31, 2024, primarily driven by an increase in total investments. Total equity also rose to **$5.7 billion** from **$5.0 billion** over the same period[8](index=8&type=chunk) Consolidated Balance Sheet Summary (in millions) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$242,645** | **$238,537** | | Total Investments | $120,747 | $117,387 | | Cash and cash equivalents | $5,540 | $5,045 | | Separate account assets | $86,085 | $85,636 | | **Total Liabilities** | **$236,907** | **$233,513** | | Future policy benefits | $31,974 | $31,475 | | Policyholder account balances | $88,046 | $87,989 | | Separate account liabilities | $86,085 | $85,636 | | **Total Equity** | **$5,738** | **$5,024** | [Interim Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)](index=5&type=section&id=Interim%20Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income%20(Loss)) - The company reported a net income available to common shareholders of **$60 million** for Q2 2025, a significant improvement from the **$9 million** in Q2 2024. For the six-month period, the net loss available to common shareholders narrowed to **$234 million** in 2025 from a loss of **$510 million** in 2024[12](index=12&type=chunk) Statement of Operations Summary (in millions, except per share data) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Total Revenues | $871 | $1,427 | $3,261 | $1,501 | | Total Expenses | $778 | $1,413 | $3,522 | $2,101 | | Net Income (Loss) | $85 | $34 | $(181) | $(457) | | Net Income (Loss) available to Common Shareholders | $60 | $9 | $(234) | $(510) | | Diluted EPS | $1.02 | $0.12 | $(4.06) | $(8.17) | [Interim Condensed Consolidated Statements of Equity](index=6&type=section&id=Interim%20Condensed%20Consolidated%20Statements%20of%20Equity) - Total equity increased from **$5.02 billion** at the end of 2024 to **$5.74 billion** as of June 30, 2025. The increase was primarily driven by other comprehensive income of **$1.02 billion**, partially offset by a net loss of **$181 million** and share repurchases totaling **$102 million** during the six-month period[15](index=15&type=chunk) [Interim Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Interim%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) - For the six months ended June 30, 2025, net cash provided by operating activities was **$145 million**, a significant turnaround from the **$196 million** used in the same period in 2024. Net cash from investing activities was **$675 million**, compared to a use of **$1.71 billion** in the prior year period[18](index=18&type=chunk) Cash Flow Summary (in millions) | Activity | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $145 | $(196) | | Net cash provided by (used in) investing activities | $675 | $(1,707) | | Net cash provided by (used in) financing activities | $(325) | $2,493 | | **Change in cash, cash equivalents and restricted cash** | **$495** | **$590** | [Notes to the Interim Condensed Consolidated Financial Statements (Unaudited)](index=8&type=section&id=Notes%20to%20the%20Interim%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) - The company is organized into four reportable segments: Annuities, Life, Run-off, and Corporate & Other. The Annuities segment is the largest, with total assets of **$168.1 billion** as of June 30, 2025[21](index=21&type=chunk)[32](index=32&type=chunk)[55](index=55&type=chunk) - The company uses adjusted earnings, a non-GAAP measure, to evaluate segment performance. This measure excludes the impact of market volatility, such as net investment gains/losses and net derivative gains/losses, to highlight underlying profitability[37](index=37&type=chunk)[38](index=38&type=chunk) Adjusted Earnings by Segment (in millions) | Segment | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Annuities | $332 | $332 | $646 | $645 | | Life | $(26) | $42 | $(17) | $6 | | Run-off | $(83) | $(30) | $(147) | $(371) | | Corporate & Other | $(25) | $2 | $(49) | $(32) | | **Total Adjusted Earnings** | **$198** | **$346** | **$433** | **$248** | - The investment portfolio is primarily composed of fixed maturity securities, with a fair value of **$80.8 billion** at June 30, 2025. The portfolio is predominantly investment grade, with **97.1%** of securities rated NAIC 1 or 2[88](index=88&type=chunk)[356](index=356&type=chunk) - During the six months ended June 30, 2025, the company repurchased **1.84 million** shares of its common stock for **$102 million**. As of June 30, 2025, **$441 million** remained available under the current share repurchase authorization[232](index=232&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=59&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial condition and results of operations, including segment performance, investment portfolio, and liquidity and capital resources [Executive Summary](index=60&type=section&id=Executive%20Summary) - For Q2 2025, the company reported net income available to shareholders of **$60 million** and adjusted earnings of **$198 million**. This compares to a net income of **$9 million** and adjusted earnings of **$346 million** in Q2 2024. The increase in net income was primarily due to favorable changes in the fair value of variable annuity guaranteed benefit riders[277](index=277&type=chunk)[278](index=278&type=chunk) Financial Summary (in millions) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Net Income (Loss) Available to Shareholders | $60 | $9 | $(234) | $(510) | | Adjusted Earnings (Loss) | $198 | $346 | $433 | $248 | [Results of Operations](index=63&type=section&id=Results%20of%20Operations) - Consolidated adjusted earnings decreased by **$148 million** to **$198 million** in Q2 2025 compared to Q2 2024. The decrease was driven by lower net investment spread and higher insurance-related costs, particularly in the Life and Run-off segments[308](index=308&type=chunk)[309](index=309&type=chunk) - For the first six months of 2025, consolidated adjusted earnings increased by **$185 million** to **$433 million** compared to the prior year period. This improvement was primarily due to lower net costs in insurance-related activities, driven by a significant positive swing in the Run-off segment related to a prior-year reinsurance arbitration[308](index=308&type=chunk)[311](index=311&type=chunk)[313](index=313&type=chunk) - The Annuities segment's adjusted earnings remained stable at **$332 million** in Q2 2025, as a higher net investment spread was offset by lower fee income and higher expenses[314](index=314&type=chunk)[315](index=315&type=chunk) - The Life segment reported an adjusted loss of **$26 million** in Q2 2025, a **$68 million** decrease from the **$42 million** profit in Q2 2024, mainly due to higher claims[318](index=318&type=chunk)[319](index=319&type=chunk) - The Run-off segment's adjusted loss widened to **$83 million** in Q2 2025 from **$30 million** in Q2 2024, driven by lower net investment spread and higher insurance costs[323](index=323&type=chunk)[326](index=326&type=chunk) [Investments](index=75&type=section&id=Investments) - The company's investment portfolio is primarily composed of fixed maturity securities, totaling **$80.8 billion** at fair value as of June 30, 2025. The portfolio remains high-quality, with **97.1%** classified as investment grade (NAIC 1 or 2)[353](index=353&type=chunk)[356](index=356&type=chunk) - The adjusted net investment income yield was **4.28%** for Q2 2025, slightly down from **4.39%** in Q2 2024[349](index=349&type=chunk) - The commercial mortgage loan portfolio, with a carrying value of **$12.9 billion**, remains diversified by property type and geography. The average loan-to-value ratio was **68%** and the average debt-service coverage ratio was **2.2x** as of June 30, 2025[367](index=367&type=chunk)[370](index=370&type=chunk)[372](index=372&type=chunk) [Liquidity and Capital Resources](index=87&type=section&id=Liquidity%20and%20Capital%20Resources) - The company maintained a substantial short-term liquidity position of **$4.6 billion** as of June 30, 2025, consisting of cash, cash equivalents, and short-term investments, excluding pledged assets[401](index=401&type=chunk) - The parent holding company, BHF, held **$803 million** in short-term liquidity and **$941 million** in total liquid assets as of June 30, 2025[441](index=441&type=chunk)[442](index=442&type=chunk) - The company continues its capital return program, having repurchased **$102 million** of common stock in the first half of 2025, with **$441 million** remaining under its authorization as of June 30, 2025[408](index=408&type=chunk)[427](index=427&type=chunk) - In July 2025, S&P revised the long-term issuer credit ratings for BHF to **BBB** from **BBB+** and the financial strength ratings for certain subsidiaries to **A** from **A+**[410](index=410&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=98&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) States no material changes to market risk exposures from the 2024 Annual Report, primarily related to interest rates, equity, credit spreads, and foreign currency - The company reports no material changes to its market risk exposures from those previously disclosed in the 2024 Annual Report[455](index=455&type=chunk) [Controls and Procedures](index=99&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls were effective as of June 30, 2025, noting MetLife transition changes as material to internal control over financial reporting - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of June 30, 2025[457](index=457&type=chunk) - Ongoing changes to business processes and systems due to the transition from MetLife are considered material changes in internal control over financial reporting[458](index=458&type=chunk) Part II — Other Information [Legal Proceedings](index=99&type=section&id=Item%201.%20Legal%20Proceedings) Refers to Note 13 for legal proceedings details, with estimated possible losses up to **$10 million** for some matters and **$100 million** for tax matters - For detailed information on legal proceedings, the report refers to Note 13 of the Interim Condensed Consolidated Financial Statements[460](index=460&type=chunk) [Risk Factors](index=99&type=section&id=Item%201A.%20Risk%20Factors) Indicates no material changes to the company's risk factors from those disclosed in its 2024 Annual Report on Form 10-K - There have been no material changes to the risk factors previously disclosed in the company's 2024 Annual Report[461](index=461&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=99&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Details common stock repurchases in Q2 2025, totaling **781,800** shares, with **$441 million** remaining for future repurchases Issuer Purchases of Equity Securities (Q2 2025) | Period | Total Shares Purchased | Average Price Paid per Share | Value Remaining in Program (end of period) | | :--- | :--- | :--- | :--- | | April 2025 | 410,200 | $51.65 | $463 million | | May 2025 | 356,400 | $59.14 | $442 million | | June 2025 | 15,200 | $59.34 | $441 million | | **Total Q2** | **781,800** | | | [Other Information](index=99&type=section&id=Item%205.%20Other%20Information) Discloses that no directors or officers adopted or terminated Rule 10b5-1 trading arrangements during Q2 2025 - During Q2 2025, no directors or officers adopted or terminated a Rule 10b5-1 trading plan[463](index=463&type=chunk) [Exhibits](index=100&type=section&id=Item%206.%20Exhibits) Lists exhibits filed with the Form 10-Q, including CEO and CFO certifications under Sarbanes-Oxley and XBRL data files - Exhibits filed with this report include CEO and CFO certifications under Sarbanes-Oxley Sections 302 and 906, and XBRL interactive data files[465](index=465&type=chunk)

Core Insights - Brighthouse Financial, Inc. (BHF) reported second-quarter 2025 adjusted earnings of $3.43 per share, missing the Zacks Consensus Estimate by 27% and reflecting a year-over-year decline of 38.4% [1][9] - The lower-than-expected results were attributed to reduced premiums and lower net investment income, although total expenses decreased significantly [1][9] Financial Performance - Total operating revenues for the quarter were $2.2 billion, down 2.9% year over year, primarily due to lower universal life and investment-type product policy fees and net investment income, missing the consensus estimate by 2.1% [2] - Premiums amounted to $166 million, an 8.3% decrease year over year, falling short of the Zacks consensus estimate of $200 million [2] - Adjusted net investment income was $1.3 billion, down 1.8% year over year, mainly due to lower income from alternative investments, with an investment income yield of 4.28% [3] - Total expenses were $778 million, a nearly 45% decrease from $1.4 billion year over year, which partially offset the revenue decline [3] Segment Performance - Annuities generated an adjusted operating income of $332 million, remaining flat year over year, with annuity sales increasing 8.4% to $2.6 billion, driven by stronger fixed annuity sales [4] - Life insurance segment reported an adjusted operating loss of $26 million compared to earnings of $42 million in the prior year, with life insurance sales increasing 17.8% quarter over quarter to $33 million [5] - The Run-off segment recorded an adjusted operating loss of $83 million, wider than the previous year's loss of $30 million, while Corporate & Other had an adjusted operating loss of $25 million compared to earnings of $2 million in the prior year [6] Financial Position - Cash and cash equivalents increased by 24.7% year over year to $5.5 billion, while shareholders' equity rose 37% to $5.7 billion [7] - Book value per share, excluding accumulated other comprehensive income, was $144.09 as of June 30, 2025, reflecting a 12.3% year-over-year increase [7] - Statutory combined total adjusted capital was $5.6 billion as of June 30, 2025, up 3.7% year over year [7] - The estimated combined risk-based capital ratio was in the range of 405-425% as of June 30, 2025 [8] Share Buyback Program - Brighthouse Financial repurchased shares worth $43 million in the second quarter of 2025, bringing the year-to-date total to $102 million [10]

Financial Data and Key Metrics Changes - The estimated combined risk-based capital (RBC) ratio was between 405% and 425%, within the target range of 400% to 450% in normal market conditions [7][14] - Total adjusted capital (TAC) increased to approximately $5.6 billion at June 30, compared to approximately $5.5 billion at March 31 [14] - Adjusted earnings for the quarter were $198 million or $3.43 per share, down from $245 million in the previous quarter and $346 million in the same quarter of 2024 [17] Business Line Data and Key Metrics Changes - Total annuity sales were $2.6 billion, a 16% sequential increase and an 8% increase compared to 2024 [9] - Shield sales totaled $1.9 billion in the quarter, with year-to-date Shield sales at $3.9 billion, consistent with the same period last year [10] - Life insurance sales in the second quarter were $33 million, contributing to record year-to-date life insurance sales of $69 million, a 21% increase compared to the same period in 2024 [10] Market Data and Key Metrics Changes - The company received $176 million in deposits through BlackRock's LifePath Paycheck product in the second quarter, indicating strong market engagement [10] - The company noted increased competition in the marketplace, particularly affecting Shield sales, which saw a decline for the first time in several years [49] Company Strategy and Development Direction - The company is focused on capital efficiency and maintaining a strong capital position at its insurance subsidiaries [6] - A strategic initiative includes separating the management of the Shield and variable annuity (VA) books to improve risk management and transparency [27][28] - The company aims to continue innovating with respect to products and maintaining pricing discipline despite competitive pressures [52][54] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to manage its legacy liabilities and maintain operational capabilities [46] - The company is committed to protecting its statutory balance sheet under adverse market conditions and expects to see less volatility in results over time [20][29] - Management indicated that the transition to a revised hedging strategy is expected to be completed by the end of the third quarter [28] Other Important Information - Corporate expenses for the second quarter were $200 million, down from $239 million in the first quarter [11] - The company returned $43 million to shareholders through common stock repurchases in the second quarter, with a total of $102 million year-to-date [11] Q&A Session Summary Question: Concerns about actuarial review for 3Q and 4Q - Management stated that the actuarial review is ongoing and no updates are available at this time [22][23] Question: Buyback plans and capital preservation - Management confirmed that buybacks are part of the normal plan but noted that the recent program expired in May [41][42] Question: Impact of competition on Shield sales - Management acknowledged increased competition but emphasized that they remain pleased with their performance and pricing discipline [49][52] Question: Clarification on unassigned surplus and cash flow - Management explained that the negative unassigned surplus is a technical consideration and does not fundamentally impact capital [58][61] Question: Long-term free cash flow projections - Management indicated that they need to complete ongoing initiatives before providing an outlook for future results [117]

Brighthouse Financial, Inc. Second Quarter 2025 Earnings Call Presentation 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, 2024, particularly in the sections entitled "Risk Factors" and "Quantitative and Qualitative Disclosures About Market Risk," as ...

Brighthouse Financial (BHF) came out with quarterly earnings of $3.43 per share, missing the Zacks Consensus Estimate of $4.7 per share. This compares to earnings of $5.57 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -27.02%. A quarter ago, it was expected that this annuity and life insurance company would post earnings of $4.72 per share when it actually produced earnings of $4.17, delivering a surprise of -11.65%.Over the ...