Company Overview - Brighthouse Financial (BHF) shares increased by 13.8% to $53.88 in the last trading session, following a broader market rally after President Trump announced a 90-day pause on reciprocal tariffs for most countries [1] - The stock had previously experienced an 11.3% loss over the past four weeks [1] Earnings Expectations - BHF is expected to report quarterly earnings of $4.79 per share, reflecting a year-over-year increase of 12.7% [2] - Revenue projections stand at $2.29 billion, which is an 11.9% increase compared to the same quarter last year [2] Earnings Estimate Revisions - The consensus EPS estimate for BHF has been revised slightly higher over the last 30 days, indicating a positive trend that typically correlates with stock price appreciation [3] - The stock currently holds a Zacks Rank of 3 (Hold), suggesting a neutral outlook [3] Industry Context - Brighthouse Financial operates within the Zacks Insurance - Life Insurance industry, which includes other companies like GoHealth (GOCO) [3] - GoHealth's consensus EPS estimate has increased by 10.6% over the past month to -$0.26, representing a year-over-year change of 70.8% [4] - GoHealth currently has a Zacks Rank of 1 (Strong Buy), contrasting with BHF's neutral rating [4]

Core Viewpoint - Brighthouse Financial, Inc. (BHF) is experiencing a short-term bullish trend as it trades above its 50-day simple moving average, despite a recent decline in share price from its 52-week high [1][3]. Company Performance - As of April 2, 2025, BHF's share price was $59.78, down 6.7% from its 52-week high of $64.12 [1]. - The company has a market capitalization of $3.47 billion, with an average trading volume of 0.7 million shares over the last three months [4]. - Year-to-date, BHF shares have gained 24.5%, outperforming the Zacks S&P 500 composite, which has declined by 4.7%, and the finance sector's return of 2.4% [5][7]. Growth Projections - The Zacks Consensus Estimate for BHF's 2025 earnings per share indicates a year-over-year increase of 3.8%, with revenues projected at $9.15 billion, reflecting a 4.9% improvement [8]. - For 2026, earnings per share and revenues are expected to increase by 12.1% and 2.4%, respectively, compared to 2024 estimates [8]. Earnings and Analyst Sentiment - BHF's earnings have grown by 16.5% over the past five years, surpassing the industry average of 7.8% [9]. - The company has an impressive Growth Score of B and has beaten earnings estimates in three of the past four quarters, with an average surprise of 14.04% [9]. - Mixed analyst sentiment exists, with four of six analysts raising estimates for 2025, while the Zacks Consensus Estimate for 2025 and 2026 earnings has increased by 0.5% and 0.3%, respectively, over the past 60 days [10]. Valuation and Profitability - BHF's shares are trading at a price-to-earnings multiple of 2.84, significantly lower than the industry average of 7.96, indicating attractive valuation [11]. - The company's trailing 12-month return on equity is 26.94%, well above the industry average of 15.35%, reflecting effective utilization of shareholder capital [12]. Strategic Focus - BHF is one of the largest providers of life insurance products in the U.S. and aims to benefit from the growing individual insurance market by enhancing its product portfolio and expanding its distribution network [13][15]. - The company has launched new products, such as Shield Level Pay Plus and SecureKey, which have contributed to increased annuity sales [14][15]. - Improved underwriting margins and net investment income are expected to drive higher life insurance sales [14][16]. Financial Strength and Capital Deployment - BHF is focused on maintaining a strong balance sheet and has committed to returning capital to shareholders through an opportunistic share repurchase program [17]. - The company anticipates continued improvement in net investment income due to a well-diversified portfolio and a conservative investment strategy [16]. Conclusion - Higher annuity and life insurance sales, a high-quality portfolio, financial flexibility, and effective capital deployment position BHF well for future growth [18]. - The stock has a VGM Score of A, indicating attractive value, growth, and momentum [18].

Core Insights - Zacks Premium provides tools for investors to enhance their stock market strategies and confidence [1] - The Zacks Style Scores are designed to help investors identify stocks with the potential to outperform the market in the short term [2] Zacks Style Scores Overview - Stocks are rated from A to F based on value, growth, and momentum characteristics, with A being the highest score [3] - The Style Scores are categorized into four types: Value Score, Growth Score, Momentum Score, and VGM Score [3][4][5][6] Value Score - Focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, and Price/Sales [3] Growth Score - Evaluates stocks based on projected and historical earnings, sales, and cash flow to find sustainable growth opportunities [4] Momentum Score - Assesses stocks based on price trends and earnings estimate changes to identify favorable buying opportunities [5] VGM Score - Combines the three Style Scores to highlight stocks with attractive value, strong growth potential, and positive momentum [6] Zacks Rank Integration - The Zacks Rank utilizes earnings estimate revisions to guide investors in building successful portfolios [7] - Stocks rated 1 (Strong Buy) have historically achieved an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [8] Stock Selection Strategy - For optimal returns, investors should consider stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [9] - Stocks with a 3 (Hold) rank should also have A or B Scores to maximize upside potential [9] Earnings Estimate Revisions - The direction of earnings estimate revisions is crucial in stock selection, as declining forecasts can negatively impact stock prices [10] Company Spotlight: Brighthouse Financial - Brighthouse Financial, Inc. is a holding company formed from the former Retail segment of MetLife, incorporated on August 1, 2016 [11] - Currently rated 3 (Hold) with a VGM Score of B, it shows potential for growth with a Growth Style Score of B and a forecasted earnings growth of 3.9% for the current fiscal year [12] - Recent upward revisions in earnings estimates and a Zacks Consensus Estimate increase to $20.39 per share highlight its growth potential [12]

Asset Management - The company reported total assets under management (AUM) of $203.023 billion as of December 31, 2024, compared to $203.727 billion as of December 31, 2023, reflecting a slight decrease of 0.35%[26]. - The Annuities segment generated $138.210 billion in total account assets as of December 31, 2024, an increase from $137.399 billion in 2023, representing a growth of 0.59%[28]. - The Shield Annuities segment saw an increase in account assets from $28.850 billion in 2023 to $32.152 billion in 2024, marking a growth of 11.96%[28]. - The account value for GMIBs was $41,202 million as of December 31, 2024, down from $44,028 million in 2023, a decrease of 6.4%[60]. - The total account value for variable annuities was $80,984 million at the end of 2024, compared to $84,297 million in 2023, reflecting a decline of 3.1%[66]. Revenue Generation - The company earned $2.6 billion in fees and charges on variable annuity contracts for both years ended December 31, 2024, and 2023, indicating stable revenue generation from this segment[39]. - Total deposits for variable annuities reached $8,300 million in 2024, up from $7,503 million in 2023, marking a 10.6% increase[52]. - Shield Annuities deposits increased to $7,671 million in 2024 from $6,857 million in 2023, representing a growth of 11.8%[52]. Risk Management - The company maintains a strong capital base and excess liquidity at the holding company, which is crucial for supporting financial strength ratings and risk management strategies[24]. - The company’s risk management approach aims to mitigate the effects of severe market disruptions, ensuring sustained long-term shareholder value[24]. - The company has shifted its business mix towards fixed products with lower guaranteed minimum crediting rates, enhancing its focus on risk-adjusted returns in the Annuities segment[27]. - The company utilizes various market scenarios to estimate impacts on statutory free cash flow and reserves, which may lead to material differences from actual outcomes[216]. - The company’s risk management strategy may negatively impact GAAP stockholders' equity and net income when interest rates rise[221]. Insurance Liabilities - The Annuities segment's insurance liabilities were reported at $60.824 billion for general account and $77.386 billion for separate account as of December 31, 2024[28]. - The insurance liabilities for life insurance products increased from $14,818 million in 2023 to $15,455 million in 2024, reflecting a growth of about 4.3%[71]. - The total insurance liabilities in the Run-off segment increased from $28,279 million in 2023 to $26,880 million in 2024, indicating a decrease of about 1.4%[83]. Product Development and Innovation - The company continues to innovate in product design, responding to customer and distributor needs, which is expected to enhance market presence over the long term[30]. - The company launched updated versions of Shield Annuities in July 2024, aiming to enhance product offerings and market competitiveness[51]. - The company focuses on term life and universal life products with index-linked benefits to enhance profitability rather than volume[70]. Regulatory Compliance - The RBC ratio is calculated as total adjusted capital (TAC) divided by the applicable company action level RBC, which is essential for regulatory compliance[115]. - Companies below 100% of the company action level RBC are subject to corrective action, which may include limiting or prohibiting sales to policyholders[115]. - The NAIC has proposed changes to asset adequacy testing requirements for ceded reinsurance, with compliance required on a disclosure-only basis for 2025[117]. - The NAIC adopted a new principles-based bond definition effective January 1, 2025, which may alter the classification and measurement of fixed income instruments[118]. Employee and Organizational Development - The company had approximately 1,400 employees as of December 31, 2024, highlighting its human capital resources[182]. - The company offers a 401(k) savings plan with matching contributions and an Employee Stock Purchase Plan, promoting employee financial well-being[187]. - The company launched employee network groups in 2022 to enhance inclusivity and support among employees[190]. Market Competition - The U.S. life insurance industry comprises 719 companies, indicating a highly competitive market with no single company dominating all product offerings[179]. - Key competitive factors in the annuities business include product features, distribution channel relationships, and financial strength ratings[180]. Financial Condition and Capital Management - The company may face liquidity challenges if it needs to sell higher-yielding, less liquid assets to cover increased obligations, which could adversely affect its financial condition[222]. - Changes in capital markets scenarios could materially affect the company's statutory free cash flow and reserving requirements, impacting overall profitability[218]. - The company’s RBC ratios and financial strength ratings are critical for supporting product sales and may be impacted by liquidity and capitalization issues[222]. Cybersecurity and Privacy Regulations - The SEC's Cybersecurity Final Rule adopted in July 2023 mandates disclosure of material cybersecurity incidents and requires periodic disclosures of cybersecurity risk management processes[146]. - The California Consumer Privacy Act (CCPA) amendments effective January 1, 2023, require additional investments in compliance programs and impose new consumer rights and obligations[143]. - The company anticipates potential future impacts from evolving privacy and cybersecurity regulations, which may affect business practices and financial condition[147].

Core Insights - Brighthouse Financial (BHF) reported fourth-quarter 2024 adjusted net income of $5.88 per share, missing the Zacks Consensus Estimate by 32.4%, but showing a year-over-year increase of 101.4% due to lower expenses [1] Financial Performance - Total operating revenues reached $2.3 billion, a 62.4% increase year over year, driven by higher net investment income and other income, surpassing the consensus mark by 1.9% [2] - Premiums amounted to $207 million, reflecting an 8.4% decrease year over year [2] - Adjusted net investment income was $1.4 billion, up 12.2% year over year, primarily due to asset growth, with an adjusted investment income yield of 4.51% [2] Expense Management - Total expenses were $371 million, down 85.6% year over year, attributed to favorable changes in market risk benefits [3] - Corporate expenses, pretax, were $210 million, a decrease of 13.9% year over year [3] Segment Performance - Annuities segment reported adjusted operating income of $279 million, up 13.9% year over year, despite an 18.3% decline in annuity sales to $2.5 billion [4] - Life segment's adjusted operating income was $52 million, a 13-fold increase year over year, with life insurance sales rising 18.9% to $33 million [5] - Run-off segment achieved adjusted operating income of $27 million, recovering from a loss of $50 million in the previous year [5] - Corporate & Other segment broke even, compared to a loss of $22 million in the prior year, driven by a higher tax benefit and lower expenses [6] Financial Position - Cash and cash equivalents were $5 billion, up 31% year over year [7] - Shareholders' equity stood at $5 billion, a 0.3% increase year over year [7] - Book value per share, excluding accumulated other comprehensive income, was $145.63 as of December 31, 2024, reflecting an 8.9% year-over-year increase [7] - Statutory combined total adjusted capital was $5.4 billion as of September 30, 2024, down 14.3% year over year [7] - Estimated combined risk-based capital ratio was 400% as of December 31, 2024 [7] Share Buyback Activity - Brighthouse repurchased shares worth $250 million in 2024 and an additional $25 million through February 7, 2025 [9]

Financial Data and Key Metrics Changes - In 2024, Brighthouse Financial reported total annuity sales of $10 billion, with record sales of the Shield product suite reaching $7.7 billion, a 12% increase compared to 2023 [13][12] - Life insurance sales grew to $120 million for the full year, representing an 18% increase over 2023 [14] - Adjusted earnings for Q4 2024 were $304 million, reflecting a notable item impact of $48 million, while adjusted earnings excluding this item were $352 million, up from $243 million in Q3 2024 and $189 million in Q4 2023 [36][37] Business Line Data and Key Metrics Changes - The annuity segment reported adjusted earnings of $327 million, driven by higher net investment income, while the life segment reported adjusted earnings of $52 million, also benefiting from higher net investment income [38][39] - The runoff segment experienced an adjusted loss of $27 million, reflecting higher net investment income and a higher underwriting margin [40] Market Data and Key Metrics Changes - The estimated combined risk-based capital (RBC) ratio was approximately 400% at year-end, at the low end of the target range of 400% to 450% in normal market conditions [22][28] - Liquid assets at the holding company were reported at $1.1 billion as of December 31, 2024, with a pro forma amount of approximately $1 billion after a capital contribution to Brighthouse Life Insurance Company [23][35] Company Strategy and Development Direction - The company is focused on improving capital efficiency and unlocking capital through strategic initiatives, including reinsurance opportunities and simplifying hedging strategies [11][19] - Brighthouse Financial aims to maintain a strong statutory balance sheet and support its distribution franchise, with a commitment to executing its business strategy in 2025 [25][26] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in statutory results but expressed confidence in the progress made on strategic initiatives and maintaining robust liquidity [10][26] - The company anticipates stable RBC ratios around 400% in normal market conditions, with plans to return capital to shareholders through share repurchases [66][89] Other Important Information - Corporate expenses were down over 7% compared to the previous year, reflecting a commitment to expense discipline [16][26] - The company has repurchased $250 million of common stock in 2024, reducing the number of shares outstanding by over 50% since the repurchase program began in 2018 [24] Q&A Session Summary Question: Can you touch on the drivers of RBC in the quarter? - Management discussed the impact of strategic initiatives, including reinsurance and standalone hedging for new business, which contributed positively to RBC despite market challenges [44][46] Question: What is the company's outlook on stable RBC? - Management indicated that stable RBC is expected to be around 400%, with plans for potential dividends from operating companies in the future [66][89] Question: How does the company view its public status given its complexity? - Management acknowledged the complexity but emphasized the commitment to creating long-term shareholder value and managing the business effectively [68][72] Question: What are the competitive dynamics in the RILA business? - Management noted strong demand for RILA products and expressed confidence in the company's competitive positioning, highlighting successful sales of the Shield product suite [121][122] Question: What is the size of the recent reinsurance deals? - Management provided details on the size of the reinsurance transactions, indicating that the annuity deal involved approximately $8 billion in assets [133]

Core Insights - Zacks Premium provides tools for investors to enhance their stock market engagement and confidence through various resources like daily updates, research reports, and stock screens [1][9] Zacks Style Scores - Zacks Style Scores are indicators designed to help investors select stocks with the highest potential to outperform the market within 30 days, rated from A to F based on value, growth, and momentum [2][10] Value Score - The Value Style Score focuses on identifying undervalued stocks by analyzing financial ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow [3] Growth Score - The Growth Style Score emphasizes a company's financial health and future prospects, utilizing projected and historical earnings, sales, and cash flow to identify stocks with sustainable growth [4] Momentum Score - The Momentum Style Score is based on price trends and earnings outlook, using metrics like one-week price change and monthly earnings estimate changes to identify high-momentum stocks [5] VGM Score - The VGM Score combines the Value, Growth, and Momentum Scores to highlight stocks with the best overall potential, serving as a strong indicator alongside the Zacks Rank [6] Zacks Rank - The Zacks Rank is a proprietary model that leverages earnings estimate revisions to assist investors in building successful portfolios, with 1 (Strong Buy) stocks historically yielding an average annual return of +25.41% since 1988 [7][8] Stock to Watch: Brighthouse Financial (BHF) - Brighthouse Financial, a holding company formed from MetLife's former Retail segment, is currently rated 3 (Hold) with a VGM Score of A [12] - The company is appealing to growth investors, with a Growth Style Score of B and a projected year-over-year earnings growth of 2.9% for the current fiscal year [13] - Recent analyst revisions have increased earnings estimates for fiscal 2025, with the Zacks Consensus Estimate rising by $0.05 to $20.19 per share, alongside an average earnings surprise of 14% [13]

Brighthouse Financial (BHF) came out with quarterly earnings of $5.88 per share, beating the Zacks Consensus Estimate of $4.44 per share. This compares to earnings of $2.92 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 32.43%. A quarter ago, it was expected that this annuity and life insurance company would post earnings of $4.50 per share when it actually produced earnings of $3.99, delivering a surprise of -11.33%.Over the ...

Financial Performance - Net income available to shareholders for Q4 2024 was $646 million, a significant increase from a loss of $942 million in Q4 2023[9] - Adjusted earnings for Q4 2024 were $304 million, compared to $177 million in Q4 2023[9] - Total revenues for Q4 2024 were $1,205 million, down from $1,400 million in Q4 2023[12] - Total adjusted revenues for Q4 2024 reached $2,273 million, a 6.6% increase from $2,133 million in Q4 2023[15] - Adjusted earnings after provision for income tax for Q4 2024 were $330 million, compared to $177 million in Q4 2023, representing an increase of 86.1%[15] - For the year ended December 31, 2024, total adjusted revenues were $8,718 million, up 4.1% from $8,375 million in 2023[16] - Adjusted earnings after provision for income tax for the year 2024 were $1,319 million, a significant increase from $969 million in 2023, reflecting a growth of 36.1%[16] - Total adjusted revenues for the year ended December 31, 2024, amounted to $8,718 million, up from $8,375 million in the previous year, indicating an increase of about 4%[75] - Adjusted earnings, less notable items, for the year ended December 31, 2024, reached $1,209 million, compared to $930 million for the previous year, reflecting a growth of approximately 30%[72] Capital and Assets - Combined total adjusted capital as of December 31, 2024, was $5,400 million, a decrease from $6,283 million a year earlier[9] - Total assets as of December 31, 2024, were $238,537 million, an increase from $236,340 million a year earlier[13] - Total liabilities as of December 31, 2024, were $233,513 million, compared to $231,332 million a year earlier[13] - Book value per common share as of December 31, 2024, was $55.60, compared to $51.08 a year earlier[9] - The company's common stockholders' equity, excluding AOCI, was $8,151 million as of December 31, 2024, down from $9,269 million a year earlier[74] Risk Management - The combined risk-based capital ratio was approximately 400% as of December 31, 2024, consistent with the previous quarter[9] - The risk-based capital (RBC) ratio is reported as a preliminary range for all periods, except those ended December 31[5] - The risk-based capital ratio ensures compliance with minimum regulatory capital requirements set by the National Association of Insurance Commissioners[70] Investment Income - Net investment income for annuities in Q4 2024 was $752 million, an increase of 9.2% from $689 million in Q4 2023[17] - Adjusted net investment income represents GAAP net investment income plus Investment Hedge Adjustments[56] - The adjusted net investment income yield for the three months ended December 31, 2024, was 4.51%, up from 4.16% in the same period last year[32] - The investment income yield for the quarter ended December 31, 2024, was 4.64%, an increase from 4.29% in the same quarter last year[76] Sales and Premiums - Premiums for annuities in Q4 2024 were $81 million, a decrease of 12.9% from $93 million in Q4 2023[17] - Total fixed and income annuity sales for the year 2024 were $1,748 million, a decrease of 43.8% from $3,109 million in 2023[20] - Total life sales for the year ended December 31, 2024, reached $120 million, compared to $102 million for the previous year, reflecting a growth of approximately 17.6%[24] - Life insurance sales consist of 100% of annualized new premium for term life and first-year paid premium for whole life, universal life, and variable universal life[67] - Annuity sales consist of 100% of direct statutory premiums, excluding certain internal exchanges[68] Expenses - Total adjusted expenses for Q4 2024 were $1,872 million, an increase from $1,890 million in Q4 2023[15] - Total expenses for the three months ended December 31, 2024, were $371 million, a decrease from $2,574 million in the same period last year[75] - Total adjusted expenses for the same period were $254 million, down from $335 million in the prior quarter, resulting in adjusted earnings of $52 million[22] Other Financial Metrics - The company reported a return on common equity of 9.4% for Q4 2024, a recovery from a negative return of 36.3% in Q4 2023[9] - The adjusted return on common equity, excluding AOCI, was 16.2% for the quarter ended December 31, 2024, compared to 10.5% in the same quarter last year[74] - Net derivative losses for the three months ended December 31, 2024, amounted to $(992) million, a significant increase from $(93) million in the previous quarter[29] - Normalized statutory earnings for the year ended December 31, 2024, were $(1.3) billion, compared to $(0.2) billion in 2023[33] - The total change in market risk benefits for the year ended December 31, 2024, was $2,673 million, up from $1,507 million in 2023[29] Capital Contributions - The company plans to continue focusing on capital contributions and risk management strategies to enhance financial stability[10] - The company made a $100 million capital contribution to Brighthouse Life Insurance Company after December 31, 2024[2]

The insurance industry isn't known for being a hotbed of dynamically trading stocks. That's why Brighthouse Financial's (BHF 0.73%) big price swing over the past few days was notable.On the back of a report in a trusted financial newspaper that the company was looking to find a buyer, both investors and analysts suddenly got more bullish on the potential for its stock. According to data compiled by S&P Global Market Intelligence, Brighthouse's price rose by nearly 22% this week.Offers wantedTuesday morning, ...