Press ReleaseVELIZY-VILLACOUBLAY, France — January 6, 2025 Half-year statement of the Liquidity contract entered into with Oddo BHF SCA Dassault Systèmes (Euronext Paris: FR0014003TT8, DSY.PA) announces that the following resources appeared on December 31, 2024 on the liquidity contract entered into with Oddo BHF SCA implemented on January 7, 2015 and updated on June 18, 2019:          671,015.00 Dassault Systèmes shares, and€ 11,139,634.13 in cash. It is reminded that:       1.   at the time of the impleme ...

Shares of Brighthouse Financial (NASDAQ: BHF ) have been a mixed performer over the past year, gaining 12% but underperforming the market. Shares have also been particularly volatile given mixed quarterly results, though the election results and Q3 results reported last week have Over fifteen years of experience making contrarian bets based on my macro view and stock-specific turnaround stories to garner outsized returns with a favorable risk/reward profile. If you want me to cover a specific stock or have ...

[Part I — Financial Information](index=4&type=section&id=Part%20I%20%E2%80%94%20Financial%20Information) This section presents the company's unaudited interim condensed consolidated financial statements and management's discussion and analysis for the period [Item 1. Consolidated Financial Statements](index=4&type=section&id=Item%201.%20Consolidated%20Financial%20Statements) This section presents the unaudited interim condensed consolidated financial statements of Brighthouse Financial, Inc. for the period ended September 30, 2024, including balance sheets, statements of operations and comprehensive income (loss), statements of equity, and statements of cash flows, along with detailed notes explaining business operations, accounting policies, segment information, and various financial components [Interim Condensed Consolidated Balance Sheets](index=4&type=section&id=Interim%20Condensed%20Consolidated%20Balance%20Sheets) This section provides a snapshot of the company's financial position, detailing assets, liabilities, and equity at specific reporting dates Consolidated Balance Sheet Highlights (September 30, 2024 vs. December 31, 2023) | Metric | Sep 30, 2024 (Millions USD) | Dec 31, 2023 (Millions USD) | | :-------------------------- | :-------------------------- | :-------------------------- | | Total Assets | 245,156 | 236,340 | | Total Liabilities | 239,566 | 231,332 | | Total Equity | 5,590 | 5,008 | - Total assets increased by **$8.8 billion (3.7%)** from December 31, 2023, to September 30, 2024, primarily driven by increases in total investments and cash and cash equivalents[6](index=6&type=chunk) - Total equity increased by **$582 million (11.6%)** from December 31, 2023, to September 30, 2024[6](index=6&type=chunk) [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)) This section outlines the company's financial performance over specific periods, including revenues, expenses, net income, and earnings per share Consolidated Statements of Operations Highlights (Three Months Ended September 30) | Metric | Sep 30, 2024 (Millions USD) | Sep 30, 2023 (Millions USD) | | :-------------------------------------------------------- | :-------------------------- | :-------------------------- | | Total Revenues | 2,018 | 1,170 | | Total Expenses | 1,830 | 580 | | Net income (loss) available to common shareholders | 150 | 453 | | Basic Earnings Per Common Share | 2.49 | 6.92 | | Diluted Earnings Per Common Share | 2.47 | 6.89 | Consolidated Statements of Operations Highlights (Nine Months Ended September 30) | Metric | Sep 30, 2024 (Millions USD) | Sep 30, 2023 (Millions USD) | | :-------------------------------------------------------- | :-------------------------- | :-------------------------- | | Total Revenues | 3,519 | 2,717 | | Total Expenses | 3,931 | 3,017 | | Net income (loss) available to common shareholders | (360) | (272) | | Basic Earnings Per Common Share | (5.82) | (4.08) | | Diluted Earnings Per Common Share | (5.82) | (4.08) | - For the three months ended September 30, 2024, total revenues increased significantly to **$2,018 million** from **$1,170 million** in the prior year, while net income available to common shareholders decreased to **$150 million** from **$453 million**[9](index=9&type=chunk) - For the nine months ended September 30, 2024, the company reported a net loss of **$360 million**, a larger loss compared to **$272 million** in the prior year, despite an increase in total revenues[9](index=9&type=chunk) [Interim Condensed Consolidated Statements of Equity](index=6&type=section&id=Interim%20Condensed%20Consolidated%20Statements%20of%20Equity) This section details changes in the company's equity over time, reflecting net income, dividends, and other comprehensive income Changes in Brighthouse Financial, Inc.'s Stockholders' Equity (Nine Months Ended September 30, 2024) | Metric | Amount (Millions USD) | | :-------------------------------------- | :-------------------- | | Balance at December 31, 2023 | 4,943 | | Treasury stock acquired | (190) | | Share-based compensation | 26 | | Dividends on preferred stock | (77) | | Net income (loss) | (283) | | Other comprehensive income (loss), net | 836 | | Balance at September 30, 2024 | 5,525 | - Total Brighthouse Financial, Inc.'s stockholders' equity increased from **$4,943 million** at December 31, 2023, to **$5,525 million** at September 30, 2024, primarily due to other comprehensive income (loss) and share-based compensation, partially offset by net loss and treasury stock acquisitions[12](index=12&type=chunk) [Interim Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Interim%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section reports the cash generated and used by the company across operating, investing, and financing activities Consolidated Statements of Cash Flows Highlights (Nine Months Ended September 30) | Metric | Sep 30, 2024 (Millions USD) | Sep 30, 2023 (Millions USD) | | :------------------------------------------ | :-------------------------- | :-------------------------- | | Net cash provided by (used in) operating activities | (172) | (289) | | Net cash provided by (used in) investing activities | (1,837) | (2,644) | | Net cash provided by (used in) financing activities | 3,788 | 2,657 | | Change in cash, cash equivalents and restricted cash | 1,779 | (276) | | Cash, cash equivalents and restricted cash, end of period | 5,630 | 3,839 | - The company experienced a positive change in cash, cash equivalents, and restricted cash of **$1,779 million** for the nine months ended September 30, 2024, a significant improvement from a **$276 million decrease** in the prior year[14](index=14&type=chunk) - Net cash provided by financing activities increased to **$3,788 million** in 2024 from **$2,657 million** in 2023, primarily driven by higher policyholder deposits[14](index=14&type=chunk) [Note 1 — Business, Basis of Presentation and Summary of Significant Accounting Policies](index=8&type=section&id=Note%201%20%E2%80%94%20Business%2C%20Basis%20of%20Presentation%20and%20Summary%20of%20Significant%20Accounting%20Policies) This note describes the company's business, the basis for financial statement presentation, and key accounting policies - Brighthouse Financial, Inc. is a holding company formed in 2016, becoming a separate publicly-traded company in August 2017, and is one of the largest providers of annuity and life insurance products in the U.S.[16](index=16&type=chunk) - The company is organized into Annuities, Life, and Run-off segments, with certain results reported in Corporate & Other[16](index=16&type=chunk) - The interim condensed consolidated financial statements are unaudited and prepared in conformity with GAAP, reflecting all necessary adjustments for fair presentation[18](index=18&type=chunk) - New accounting guidance on Income Tax Disclosures (ASU 2023-09) and Segment Reporting Disclosures (ASU 2023-07) will be effective for fiscal years starting January 1, 2025, and January 1, 2024 (interim periods starting Jan 1, 2025), respectively, with the company currently evaluating their impact[20](index=20&type=chunk)[22](index=22&type=chunk) [Note 2 — Segment Information](index=9&type=section&id=Note%202%20%E2%80%94%20Segment%20Information) This note provides financial data for the company's operating segments, including adjusted earnings and asset allocation - The company operates through three segments: Annuities (variable, fixed, index-linked, and income annuities), Life (term, universal, whole, and variable life products), and Run-off (products no longer actively sold, including ULSG and structured settlements) Corporate & Other includes excess capital, debt interest expense, legal expenses, and long-term care business[23](index=23&type=chunk)[24](index=24&type=chunk)[25](index=25&type=chunk)[26](index=26&type=chunk) - Adjusted earnings (a non-GAAP measure) is used to evaluate segment performance, excluding market volatility impacts like net investment gains/losses, net derivative gains/losses (excluding Investment Hedge Adjustments), changes in market risk benefits, and market value adjustments[27](index=27&type=chunk) Pre-tax Adjusted Earnings (Loss) by Segment (Three Months Ended September 30, 2024) | Segment | Pre-tax Adjusted Earnings (Loss) (Millions USD) | | :---------------- | :---------------------------------------------- | | Annuities | 403 | | Life | (32) | | Run-off | 584 | | Corporate & Other | 13 | | Total | 968 | Pre-tax Adjusted Earnings (Loss) by Segment (Nine Months Ended September 30, 2024) | Segment | Pre-tax Adjusted Earnings (Loss) (Millions USD) | | :---------------- | :---------------------------------------------- | | Annuities | 1,198 | | Life | (26) | | Run-off | 115 | | Corporate & Other | 42 | | Total | 1,329 | Total Revenues by Segment (Nine Months Ended September 30) | Segment | Sep 30, 2024 (Millions USD) | Sep 30, 2023 (Millions USD) | | :---------------- | :-------------------------- | :-------------------------- | | Annuities | 3,932 | 3,630 | | Life | 817 | 915 | | Run-off | 1,162 | 1,241 | | Corporate & Other | 534 | 456 | | Adjustments | (2,926) | (3,525) | | Total | 3,519 | 2,717 | Total Assets by Segment (September 30, 2024 vs. December 31, 2023) | Segment | Sep 30, 2024 (Millions USD) | Dec 31, 2023 (Millions USD) | | :---------------- | :-------------------------- | :-------------------------- | | Annuities | 168,286 | 160,775 | | Life | 25,732 | 25,504 | | Run-off | 26,465 | 26,828 | | Corporate & Other | 24,673 | 23,233 | | Total | 245,156 | 236,340 | [Note 3 — Insurance Liabilities](index=13&type=section&id=Note%203%20%E2%80%94%20Insurance%20Liabilities) This note details the company's various insurance liabilities, including future policy benefits and policyholder account balances - The net liability for future policy benefits (LFPB) for non-participating traditional and limited-payment contracts was **$13,005 million** at September 30, 2024, an increase from **$12,023 million** at September 30, 2023[40](index=40&type=chunk) - The net additional liability for universal life-type contracts with secondary guarantees (ULSG), after reinsurance recoverable, increased to **$7,445 million** at September 30, 2024, from **$5,831 million** at September 30, 2023[43](index=43&type=chunk) - The 2024 annual actuarial review (AAR) updated assumptions for policyholder behavior (mortality, premium persistency, lapses, withdrawals) and increased the long-term general account earned rate from **3.75% to 4.00%** for ULSG liabilities[43](index=43&type=chunk) Total Policyholder Account Balances (September 30, 2024 vs. December 31, 2023) | Metric | Sep 30, 2024 (Millions USD) | Dec 31, 2023 (Millions USD) | | :---------------------------------------- | :-------------------------- | :-------------------------- | | Policyholder account balances (rollforward table) | 74,738 | 66,233 | | Funding agreements classified as investment contracts | 11,561 | 11,052 | | Institutional group annuities | 363 | — | | Other investment contract liabilities | 1,016 | 1,086 | | Total policyholder account balances | 87,678 | 78,371 | - Total policyholder account balances increased to **$87,678 million** at September 30, 2024, from **$78,371 million** at December 31, 2023, driven by growth in various product categories and funding agreements[49](index=49&type=chunk) [Note 4 — Market Risk Benefits](index=18&type=section&id=Note%204%20%E2%80%94%20Market%20Risk%20Benefits) This note explains the company's market risk benefits, their valuation, and the impact of actuarial assumption updates Market Risk Benefit Assets and Liabilities (Nine Months Ended September 30) | Metric | Sep 30, 2024 (Millions USD) | Sep 30, 2023 (Millions USD) | | :---------------------------------------- | :-------------------------- | :-------------------------- | | Balance, beginning of period | 9,701 | 9,974 | | Effect of changes in future expected assumptions | (53) | 259 | | Effect of changes in interest rates | (307) | (2,360) | | Effect of changes in fund returns | (1,490) | (669) | | Balance, end of period, net of reinsurance | 8,783 | 8,143 | - The net balance of market risk benefits (MRB) decreased to **$8,783 million** at September 30, 2024, from **$9,701 million** at the beginning of the period, primarily due to the effect of changes in fund returns and interest rates[52](index=52&type=chunk) - The 2024 AAR updated assumptions for policyholder behavior, mortality, and separate account fund allocations, impacting the estimated fair value of guarantees[52](index=52&type=chunk) [Note 5 — Separate Accounts](index=19&type=section&id=Note%205%20%E2%80%94%20Separate%20Accounts) This note provides information on separate account liabilities and the fair value of assets supporting these accounts Separate Account Liabilities (Nine Months Ended September 30) | Metric | Sep 30, 2024 (Millions USD) | Sep 30, 2023 (Millions USD) | | :---------------------------------------- | :-------------------------- | :-------------------------- | | Balance, beginning of period | 87,990 | 82,843 | | Premiums and deposits | 712 | 721 | | Surrenders and withdrawals | (6,257) | (4,752) | | Investment performance | 10,775 | 4,789 | | Balance, end of period | 90,055 | 82,505 | - Total separate account liabilities increased to **$90,313 million** at September 30, 2024, from **$82,675 million** at September 30, 2023, primarily driven by strong investment performance[55](index=55&type=chunk) Aggregate Estimated Fair Value of Assets Supporting Separate Accounts (September 30, 2024 vs. December 31, 2023) | Asset Category | Sep 30, 2024 (Millions USD) | Dec 31, 2023 (Millions USD) | | :------------------------ | :-------------------------- | :-------------------------- | | Equity securities | 90,040 | 87,999 | | Fixed maturity securities | 264 | 258 | | Cash and cash equivalents | 5 | 7 | | Other assets | 4 | 7 | | Total | 90,313 | 88,271 | Net Amount at Risk (NAR) and Cash Surrender Value (September 30, 2024 vs. September 30, 2023) | Product Grouping | Sep 30, 2024 NAR (Millions USD) | Sep 30, 2023 NAR (Millions USD) | | :------------------------ | :------------------------------ | :------------------------------ | | Universal Life Insurance | 33,923 | 36,238 | | Variable Annuities | 11,711 | 16,127 | | ULSG | 64,059 | 69,277 | | Company-Owned Life Insurance | 2,683 | 2,625 | | | | | | Product Grouping | Sep 30, 2024 Cash Surrender Value (Millions USD) | Sep 30, 2023 Cash Surrender Value (Millions USD) | | :------------------------ | :----------------------------------------------- | :----------------------------------------------- | | Universal Life Insurance | 8,523 | 7,346 | | Variable Annuities | 84,765 | 79,155 | | Index-linked Annuities | 46,076 | 36,164 | | Fixed Rate Annuities | 14,632 | 14,189 | | ULSG | 4,360 | 6,121 | | Company-Owned Life Insurance | 2,769 | 2,469 | [Note 6 — Deferred Policy Acquisition Costs, Value of Business Acquired and Other Intangibles](index=21&type=section&id=Note%206%20%E2%80%94%20Deferred%20Policy%20Acquisition%20Costs%2C%20Value%20of%20Business%20Acquired%20and%20Other%20Intangibles) This note details the company's deferred policy acquisition costs, value of business acquired, and other intangible assets Total Deferred Policy Acquisition Costs (DAC) and Value of Business Acquired (VOBA) (Nine Months Ended September 30) | Metric | Sep 30, 2024 (Millions USD) | Sep 30, 2023 (Millions USD) | | :---------------------------------------- | :-------------------------- | :-------------------------- | | DAC Balance, end of period | 4,248 | 4,127 | | VOBA Balance, end of period | 384 | 426 | | Total DAC and VOBA Balance, end of period | 4,630 | 4,553 | - Total DAC and VOBA increased slightly to **$4,630 million** at September 30, 2024, from **$4,553 million** at September 30, 2023, with capitalization exceeding amortization for DAC[60](index=60&type=chunk) Deferred Sales Inducements (Nine Months Ended September 30) | Metric | Sep 30, 2024 (Millions USD) | Sep 30, 2023 (Millions USD) | | :---------------------------------------- | :-------------------------- | :-------------------------- | | Balance, beginning of period | 228 | 254 | | Amortization | (18) | (20) | | Balance, end of period | 210 | 234 | Unearned Revenue (Nine Months Ended September 30) | Metric | Sep 30, 2024 (Millions USD) | Sep 30, 2023 (Millions USD) | | :---------------------------------------- | :-------------------------- | :-------------------------- | | Balance, beginning of period | 1,035 | 1,028 | | Capitalization | 153 | 161 | | Amortization | (78) | (71) | | Balance, end of period | 1,092 | 1,018 | [Note 7 — Investments](index=22&type=section&id=Note%207%20%E2%80%94%20Investments) This note provides a comprehensive overview of the company's investment portfolio, including fixed maturity securities and mortgage loans Total Fixed Maturity Securities Available-For-Sale (September 30, 2024 vs. December 31, 2023) | Metric | Sep 30, 2024 (Millions USD) | Dec 31, 2023 (Millions USD) | | :---------------------------------------- | :-------------------------- | :-------------------------- | | Amortized Cost | 87,838 | 87,131 | | Allowance for Credit Losses | 61 | 21 | | Gross Unrealized Gains | 1,300 | 1,037 | | Gross Unrealized Losses | 5,779 | 7,156 | | Estimated Fair Value | 83,298 | 80,991 | - The estimated fair value of fixed maturity securities increased to **$83,298 million** at September 30, 2024, from **$80,991 million** at December 31, 2023, despite significant gross unrealized losses[65](index=65&type=chunk) - The allowance for credit losses for fixed maturity securities increased to **$61 million** at September 30, 2024, from **$21 million** at December 31, 2023, relating to **28 securities**[70](index=70&type=chunk) Total Mortgage Loans (September 30, 2024 vs. December 31, 2023) | Metric | Sep 30, 2024 (Millions USD) | Dec 31, 2023 (Millions USD) | | :---------------------------------------- | :-------------------------- | :-------------------------- | | Total mortgage loans (carrying value) | 23,105 | 22,645 | | Allowance for credit losses | (167) | (137) | | Total mortgage loans, net | 22,938 | 22,508 | - The allowance for credit losses for mortgage loans increased to **$167 million** at September 30, 2024, from **$137 million** at December 31, 2023, with a current period provision of **$43 million** for the nine months ended September 30, 2024[76](index=76&type=chunk) - Over **99%** of all mortgage loans were classified as performing at both September 30, 2024, and December 31, 2023, indicating a high-quality portfolio[82](index=82&type=chunk) Net Investment Income (Nine Months Ended September 30) | Metric | Sep 30, 2024 (Millions USD) | Sep 30, 2023 (Millions USD) | | :---------------------------------------- | :-------------------------- | :-------------------------- | | Total investment income | 4,114 | 3,731 | | Less: Investment expenses | 265 | 274 | | Net investment income | 3,849 | 3,457 | Net Investment Gains (Losses) (Nine Months Ended September 30) | Metric | Sep 30, 2024 (Millions USD) | Sep 30, 2023 (Millions USD) | | :---------------------------------------- | :-------------------------- | :-------------------------- | | Fixed maturity securities | (184) | (185) | | Equity securities | 2 | (2) | | Mortgage loans | (42) | (24) | | Limited partnerships and LLCs | (1) | — | | Other | 3 | (2) | | Total net investment gains (losses) | (222) | (213) | [Note 8 — Derivatives](index=34&type=section&id=Note%208%20%E2%80%94%20Derivatives) This note describes the company's use of derivatives for risk management and their fair value and impact on financial results - The company uses derivatives (interest rate, foreign currency, equity market, credit) to manage exposure to various market risks, with a substantial portion not designated for hedge accounting[105](index=105&type=chunk)[107](index=107&type=chunk) - New derivative strategies in 2024 include equity futures for index-linked annuities, interest rate futures for institutional group annuities, and interest rate swaps for funding agreement liabilities[105](index=105&type=chunk) Gross Notional Amount and Estimated Fair Value of Derivatives (September 30, 2024 vs. December 31, 2023) | Metric | Sep 30, 2024 Gross Notional (Millions USD) | Sep 30, 2024 Estimated Fair Value (Assets/Liabilities) (Millions USD) | Dec 31, 2023 Gross Notional (Millions USD) | Dec 31, 2023 Estimated Fair Value (Assets/Liabilities) (Millions USD) | | :---------------------------------------- | :----------------------------------------- | :-------------------------------------------------------------------- | :----------------------------------------- | :-------------------------------------------------------------------- | | Total qualifying hedges | 4,342 | 324 / 52 | 3,939 | 348 / 45 | | Total non-designated or nonqualifying derivatives | 233,859 | 3,126 / 3,950 | 169,297 | 3,366 / 5,043 | | Total | 238,201 | 3,450 / 4,002 | 173,236 | 3,714 / 5,088 | Net Derivative Gains (Losses) (Nine Months Ended September 30) | Metric | Sep 30, 2024 (Millions USD) | Sep 30, 2023 (Millions USD) | | :---------------------------------------- | :-------------------------- | :-------------------------- | | Derivatives Designated as Hedging Instruments | 11 | 3 | | Derivatives Not Designated or Not Qualifying as Hedging Instruments | (2,684) | (3,211) | | Total | (2,673) | (3,208) | - The company manages credit risk by transacting with creditworthy counterparties, using master netting agreements, trading through regulated exchanges, and obtaining collateral[114](index=114&type=chunk) Net Derivative Assets and Liabilities After Netting Agreements and Collateral (September 30, 2024 vs. December 31, 2023) | Metric | Sep 30, 2024 (Millions USD) | Dec 31, 2023 (Millions USD) | | :---------------------------------------- | :-------------------------- | :-------------------------- | | Net Amount After Collateral (Derivative assets) | 24 | 36 | | Net Amount After Collateral (Derivative liabilities) | — | — | [Note 9 — Fair Value](index=40&type=section&id=Note%209%20%E2%80%94%20Fair%20Value) This note details the company's fair value measurements for assets and liabilities, categorized by input observability - The company measures various assets and liabilities at estimated fair value on a recurring basis, classifying them into a fair value hierarchy (Level 1, 2, or 3) based on the observability of inputs[120](index=120&type=chunk) Total Assets Measured at Estimated Fair Value (September 30, 2024 vs. December 31, 2023) | Metric | Sep 30, 2024 (Millions USD) | Dec 31, 2023 (Millions USD) | | :---------------------------------------- | :-------------------------- | :-------------------------- | | Total assets measured at fair value | 179,754 | 174,903 | | - Level 1 | 4,195 | 4,475 | | - Level 2 | 173,220 | 167,993 | | - Level 3 | 2,339 | 2,435 | Total Liabilities Measured at Estimated Fair Value (September 30, 2024 vs. December 31, 2023) | Metric | Sep 30, 2024 (Millions USD) | Dec 31, 2023 (Millions USD) | | :---------------------------------------- | :-------------------------- | :-------------------------- | | Total liabilities measured at fair value | 25,153 | 23,597 | | - Level 1 | — | — | | - Level 2 | 4,002 | 5,088 | | - Level 3 | 21,151 | 18,509 | - Valuation methodologies for fixed maturity securities, equity securities, short-term investments, and derivatives prioritize observable market prices and market-based parameters, with ongoing review and adjustments[124](index=124&type=chunk)[125](index=125&type=chunk)[129](index=129&type=chunk)[130](index=130&type=chunk) - Market Risk Benefits (MRBs) and embedded derivatives on index-linked annuities are measured at fair value using risk-neutral valuation methodologies, incorporating capital market inputs and actuarial assumptions, including nonperformance risk and risk margins[132](index=132&type=chunk)[133](index=133&type=chunk) - Assets and liabilities are transferred into or out of Level 3 when the observability of significant inputs changes due to market activity or specific events[135](index=135&type=chunk) [Note 10 — Equity](index=50&type=section&id=Note%2010%20%E2%80%94%20Equity) This note provides information on the company's equity structure, including preferred stock, common stock repurchases, and accumulated other comprehensive income Preferred Stock Shares (September 30, 2024 and December 31, 2023) | Series | Shares Authorized | Shares Issued | Shares Outstanding | | :---------------------------------------- | :---------------- | :------------ | :----------------- | | 6.600% Non-Cumulative Preferred Stock, Series A | 17,000 | 17,000 | 17,000 | | 6.750% Non-Cumulative Preferred Stock, Series B | 16,100 | 16,100 | 16,100 | | 5.375% Non-Cumulative Preferred Stock, Series C | 23,000 | 23,000 | 23,000 | | 4.625% Non-Cumulative Preferred Stock, Series D | 14,000 | 14,000 | 14,000 | | Not designated | 99,929,900 | — | — | | Total | 100,000,000 | 70,100 | 70,100 | Preferred Stock Dividends Declared (Nine Months Ended September 30) | Series | Sep 30, 2024 Aggregate (Millions USD) | Sep 30, 2023 Aggregate (Millions USD) | | :----- | :------------------------------------ | :------------------------------------ | | A | 21 | 21 | | B | 21 | 21 | | C | 23 | 23 | | D | 12 | 12 | | Total | 77 | 77 | - During the nine months ended September 30, 2024, BHF repurchased **4,062,047 shares** of common stock for **$190 million** As of September 30, 2024, **$603 million** remained under its common stock repurchase program[153](index=153&type=chunk) Accumulated Other Comprehensive Income (Loss) (AOCI) Components (Nine Months Ended September 30, 2024) | AOCI Component | Balance at Dec 31, 2023 (Millions USD) | OCI before reclassifications (Millions USD) | Deferred income tax benefit (expense) (Millions USD) | Amounts reclassified from AOCI (Millions USD) | Balance at Sep 30, 2024 (Millions USD) | | :------------------------------------------------ | :------------------------------------- | :------------------------------------------ | :--------------------------------------------------- | :-------------------------------------------- | :------------------------------------- | | Net Unrealized Investment Gains (Losses) | (4,317) | 1,371 | (288) | 140 | (3,123) | | Unrealized Gains (Losses) on Derivatives | 277 | (22) | 5 | (13) | 249 | | Changes in Nonperformance Risk on Market Risk Benefits | (1,881) | 67 | (14) | — | (1,828) | | Changes in Discount Rates on Future Policy Benefits | 720 | (137) | 29 | — | 612 | | Other | (45) | 6 | (1) | 4 | (37) | | Total | (5,246) | 1,285 | (269) | 131 | (4,127) | - AOCI improved from a loss of **$5,246 million** at December 31, 2023, to a loss of **$4,127 million** at September 30, 2024, primarily due to OCI before reclassifications and deferred income tax benefits, partially offset by reclassifications from AOCI[156](index=156&type=chunk) [Note 11 — Other Revenues and Other Expenses](index=53&type=section&id=Note%2011%20%E2%80%94%20Other%20Revenues%20and%20Other%20Expenses) This note details the components of other revenues and other expenses, highlighting key drivers of these financial items - Other revenues include 12b-1 fees, which were **$204 million** for the nine months ended September 30, 2024, primarily from the Annuities segment, consistent with **$201 million** in the prior year[160](index=160&type=chunk) Other Expenses (Nine Months Ended September 30) | Expense Category | Sep 30, 2024 (Millions USD) | Sep 30, 2023 (Millions USD) | | :---------------------------------------- | :-------------------------- | :-------------------------- | | Compensation | 314 | 302 | | Contracted services and other labor costs | 207 | 221 | | Transition services agreements | 17 | 26 | | Premium and other taxes, licenses and fees | 37 | 49 | | Separate account fees | 275 | 277 | | Volume related costs | 436 | 409 | | Interest expense on debt | 114 | 114 | | Other | 67 | 55 | | Total other expenses | 1,467 | 1,453 | - Total other expenses increased slightly to **$1,467 million** for the nine months ended September 30, 2024, from **$1,453 million** in the prior year, driven by higher compensation and volume-related costs[161](index=161&type=chunk) [Note 12 — Earnings Per Common Share](index=54&type=section&id=Note%2012%20%E2%80%94%20Earnings%20Per%20Common%20Share) This note presents the calculation of basic and diluted earnings per common share for the reported periods Earnings Per Common Share (Three Months Ended September 30) | Metric | Sep 30, 2024 | Sep 30, 2023 | | :---------------------------------------- | :----------- | :----------- | | Net income (loss) available to common shareholders (Millions USD) | 150 | 453 | | Weighted average common shares outstanding — basic | 60,600,840 | 65,408,241 | | Dilutive effect of share-based awards | 348,979 | 336,110 | | Weighted average common shares outstanding — diluted | 60,949,819 | 65,744,351 | | Basic Earnings Per Common Share | $2.49 | $6.92 | | Diluted Earnings Per Common Share | $2.47 | $6.89 | Earnings Per Common Share (Nine Months Ended September 30) | Metric | Sep 30, 2024 | Sep 30, 2023 | | :---------------------------------------- | :----------- | :----------- | | Net income (loss) available to common shareholders (Millions USD) | (360) | (272) | | Weighted average common shares outstanding — basic | 61,860,201 | 66,658,796 | | Dilutive effect of share-based awards | — | — | | Weighted average common shares outstanding — diluted | 61,860,201 | 66,658,796 | | Basic Earnings Per Common Share | $(5.82) | $(4.08) | | Diluted Earnings Per Common Share | $(5.82) | $(4.08) | - For the nine months ended September 30, 2024, the company reported a basic and diluted loss per common share of **$(5.82)**, compared to **$(4.08)** in the prior year, reflecting a larger net loss[164](index=164&type=chunk) [Note 13 — Contingencies, Commitments and Guarantees](index=54&type=section&id=Note%2013%20%E2%80%94%20Contingencies%2C%20Commitments%20and%20Guarantees) This note outlines the company's exposure to various legal proceedings, regulatory matters, and financial commitments - The company is involved in various litigation matters, regulatory inquiries, and investigations, with potential for large or indeterminate damages, including class action lawsuits related to cost of insurance and a data security incident[166](index=166&type=chunk)[170](index=170&type=chunk)[172](index=172&type=chunk)[173](index=173&type=chunk) - As of September 30, 2024, the aggregate range of reasonably possible losses for estimable litigation matters is up to approximately **$10 million**[167](index=167&type=chunk) - For other loss contingencies, including tax and reinsurance matters, the estimated range of reasonably possible losses in excess of accrued amounts is from zero up to approximately **$75 million**[175](index=175&type=chunk) - Commitments include **$408 million** for mortgage loan commitments and **$1.6 billion** for partnership investments, bank credit facilities, and private corporate bond investments at September 30, 2024[176](index=176&type=chunk) - The company provides various indemnities and guarantees, some with contractual limitations up to **$83 million**, while others have no specified limitations, making the maximum potential obligation undeterminable[177](index=177&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=58&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides a comprehensive discussion and analysis of Brighthouse Financial's results of operations, financial condition, and cash flows for the three and nine months ended September 30, 2024 and 2023. It covers key financial performance metrics, industry trends, critical accounting estimates, non-GAAP financial measures, segment-specific results, investment portfolio performance, derivative strategies, policyholder liabilities, and liquidity and capital resources [Introduction](index=59&type=section&id=Introduction) This introduction provides context for understanding the company's financial performance and condition - This Management's Discussion and Analysis (MD&A) aims to help readers understand Brighthouse Financial's results of operations, financial condition, and cash flows, and should be read in conjunction with the interim condensed consolidated financial statements and prior SEC filings[181](index=181&type=chunk)[182](index=182&type=chunk) [Executive Summary](index=59&type=section&id=Executive%20Summary) This summary highlights key financial results and strategic overview of the company's operations - Brighthouse Financial is a leading provider of annuity and life insurance products in the U.S., operating through Annuities, Life, and Run-off segments, plus Corporate & Other[184](index=184&type=chunk) Net Income (Loss) and Adjusted Earnings (Three Months Ended September 30) | Metric | Sep 30, 2024 (Millions USD) | Sep 30, 2023 (Millions USD) | | :---------------------------------------- | :-------------------------- | :-------------------------- | | Net income (loss) available to shareholders | 150 | 453 | | Adjusted earnings (loss) | 767 | 326 | Net Income (Loss) and Adjusted Earnings (Nine Months Ended September 30) | Metric | Sep 30, 2024 (Millions USD) | Sep 30, 2023 (Millions USD) | | :---------------------------------------- | :-------------------------- | :-------------------------- | | Net income (loss) available to shareholders | (360) | (272) | | Adjusted earnings (loss) | 1,015 | 792 | - For the three months ended September 30, 2024, net income available to shareholders was **$150 million** (down from **$453 million** YoY), while adjusted earnings increased significantly to **$767 million** (up from **$326 million** YoY)[189](index=189&type=chunk) - For the nine months ended September 30, 2024, the company reported a net loss of **$360 million** (larger than **$272 million** YoY), but adjusted earnings increased to **$1.0 billion** (up from **$792 million** YoY)[190](index=190&type=chunk) [Industry Trends and Uncertainties](index=60&type=section&id=Industry%20Trends%20and%20Uncertainties) This section discusses external factors and market conditions impacting the company's business and financial outlook - The company's business is materially affected by capital markets and economic conditions, including equity market performance, long-term interest rates, yield curve shape, and inflation, which can impact product demand, revenues, expenses, and risk management[193](index=193&type=chunk) - The Federal Reserve decreased the target range for the federal funds rate in September and November 2024, which may negatively impact the investment portfolio by lowering long-term interest rates and changing the yield curve[193](index=193&type=chunk)[251](index=251&type=chunk) - The company closely monitors political and economic conditions, including global inflation, instability in asset classes (e.g., commercial real estate), supply chain disruptions, and geopolitical conflicts[193](index=193&type=chunk) - The company's insurance subsidiaries are primarily regulated at the state level, with some products and services subject to federal regulation, and are also subject to insurance holding company laws[194](index=194&type=chunk) [Summary of Critical Accounting Estimates](index=62&type=section&id=Summary%20of%20Critical%20Accounting%20Estimates) This section outlines the significant accounting judgments and estimates that materially affect the financial statements - Critical accounting estimates involve subjective and complex judgments, particularly for liability for future policy benefits, estimated fair values of market risk benefits, estimated fair values of freestanding and embedded derivatives, and measurement of income taxes and deferred tax assets[196](index=196&type=chunk)[197](index=197&type=chunk) [Non-GAAP Financial Disclosures](index=62&type=section&id=Non-GAAP%20Financial%20Disclosures) This section explains the non-GAAP financial measures used by management to assess performance and provide additional insights - Adjusted earnings is a non-GAAP financial measure used by management to evaluate performance, excluding the impact of market volatility to highlight underlying profitability drivers[200](index=200&type=chunk) - Significant items excluded from total revenues in calculating adjusted earnings include net investment gains (losses) and net derivative gains (losses (excluding Investment Hedge Adjustments)[200](index=200&type=chunk) - Significant items excluded from total expenses in calculating adjusted earnings include changes in market risk benefits and market value adjustments[200](index=200&type=chunk) - Adjusted net investment income and adjusted net investment income yield are also non-GAAP measures used to enhance understanding of investment portfolio results[202](index=202&type=chunk) [Results of Operations](index=64&type=section&id=Results%20of%20Operations) This section analyzes the company's revenues, expenses, and net income, detailing the drivers of financial performance - The 2024 Annual Actuarial Review (AAR) increased the long-term general account earned rate for ULSG business from **3.75% to 4.00%** and updated assumptions for policyholder behavior across ULSG, variable annuity, and life insurance businesses[204](index=204&type=chunk) Total Impact of AAR on Income (Loss) Available to Shareholders Before Provision for Income Tax (Nine Months Ended September 30) | Metric | Sep 30, 2024 (Millions USD) | Sep 30, 2023 (Millions USD) | | :---------------------------------------- | :-------------------------- | :-------------------------- | | Market risk benefits | 42 | (251) | | Embedded derivatives | 69 | — | | Total market risk benefits and embedded derivatives | 111 | (251) | | Total included in pre-tax adjusted earnings (loss) | 302 | 44 | | Total impact on income (loss) available to shareholders before provision for income tax | 413 | (207) | Consolidated Revenues and Expenses (Three Months Ended September 30) | Metric | Sep 30, 2024 (Millions USD) | Sep 30, 2023 (Millions USD) | | :---------------------------------------- | :-------------------------- | :-------------------------- | | Total revenues | 2,018 | 1,170 | | Total expenses | 1,830 | 580 | | Net income (loss) available to common shareholders | 150 | 453 | Consolidated Revenues and Expenses (Nine Months Ended September 30) | Metric | Sep 30, 2024 (Millions USD) | Sep 30, 2023 (Millions USD) | | :---------------------------------------- | :-------------------------- | :-------------------------- | | Total revenues | 3,519 | 2,717 | | Total expenses | 3,931 | 3,017 | | Net income (loss) available to common shareholders | (360) | (272) | - For the three months ended September 30, 2024, income available to shareholders before tax decreased by **$402 million** to **$160 million**, primarily due to losses from variable annuity guaranteed benefit riders and the net impact of embedded derivatives and equity options, partially offset by favorable long-term interest rate impacts on interest rate derivatives and higher pre-tax adjusted earnings[210](index=210&type=chunk) - For the nine months ended September 30, 2024, loss available to shareholders before tax increased by **$112 million** to **$493 million**, driven by higher losses from variable annuity guaranteed benefit riders and the net impact of embedded derivatives and equity options, partially offset by higher pre-tax adjusted earnings and favorable long-term interest rate impacts on interest rate derivatives[211](index=211&type=chunk) Consolidated Adjusted Earnings (Three Months Ended September 30) | Metric | Sep 30, 2024 (Millions USD) | Sep 30, 2023 (Millions USD) | | :---------------------------------------- | :-------------------------- | :-------------------------- | | Fee income | 703 | 667 | | Net investment spread | 720 | 758 | | Insurance-related activities | 187 | (368) | | Amortization of DAC and VOBA | (150) | (155) | | Other expenses | (492) | (473) | | Pre-tax adjusted earnings (loss) | 940 | 401 | | Adjusted earnings (loss) | 767 | 326 | Consolidated Adjusted Earnings (Nine Months Ended September 30) | Metric | Sep 30, 2024 (Millions USD) | Sep 30, 2023 (Millions USD) | | :---------------------------------------- | :-------------------------- | :-------------------------- | | Fee income | 2,005 | 2,097 | | Net investment spread | 2,226 | 2,152 | | Insurance-related activities | (984) | (1,282) | | Amortization of DAC and VOBA | (451) | (468) | | Other expenses | (1,467) | (1,453) | | Pre-tax adjusted earnings (loss) | 1,248 | 965 | | Adjusted earnings (loss) | 1,015 | 792 | - Adjusted earnings increased by **$441 million** to **$767 million** for the three months ended September 30, 2024, driven by lower net costs in insurance-related activities and higher net fee income, partially offset by lower net investment spread and higher other expenses[220](index=220&type=chunk)[221](index=221&type=chunk) - Adjusted earnings increased by **$223 million** to **$1.0 billion** for the nine months ended September 30, 2024, primarily due to lower net costs in insurance-related activities and higher net investment spread, partially offset by lower net fee income and higher other expenses[222](index=222&type=chunk)[223](index=223&type=chunk) Annuity Guaranteed Benefits and Shield Annuity Liabilities Performance (Nine Months Ended September 30) | Metric | Sep 30, 2024 (Millions USD) | Sep 30, 2023 (Millions USD) | | :---------------------------------------- | :-------------------------- | :-------------------------- | | Market risk benefits mark-to-market | 780 | 1,755 | | Annuity guaranteed benefit rider fees, net of claims | 423 | 453 | | Ceded reinsurance | (17) | (38) | | Total changes attributable to annuity guaranteed benefits | 1,186 | 2,170 | | Variable annuity hedges | 1,039 | (894) | | Shield embedded derivatives | (3,490) | (1,993) | | Total | (1,265) | (717) | - Annuity guaranteed benefits and Shield annuity liabilities performance was unfavorable for the nine months ended September 30, 2024, primarily due to unfavorable changes in Shield embedded derivatives, partially offset by favorable decreases in annuity guaranteed benefits liabilities and favorable changes in variable annuity hedges[246](index=246&type=chunk) [Investments](index=77&type=section&id=Investments) This section provides an overview of the company's investment portfolio, strategies, and performance - The company manages investment risks through asset-type allocation, industry and issuer diversification, risk limits, and Asset Liability Management (ALM) strategies, including the use of derivatives[249](index=249&type=chunk) - External asset management firms manage the investment of general account and certain separate account assets, while derivatives trading is managed in-house[250](index=250&type=chunk) - The Federal Reserve's interest rate decreases in September and November 2024 may impact the investment portfolio by lowering long-term interest rates[251](index=251&type=chunk) - The company monitors direct and indirect commercial real estate exposure, including mortgage loans and structured securities, and does not expect a material adverse effect on results[253](index=253&type=chunk) Adjusted Net Investment Income (Nine Months Ended September 30) | Metric | Sep 30, 2024 (Millions USD) | Sep 30, 2023 (Millions USD) | | :---------------------------------------- | :-------------------------- | :-------------------------- | | Investment income | 3,990 | 3,656 | | Investment fees and expenses | (113) | (113) | | Adjusted net investment income | 3,877 | 3,543 | - Adjusted net investment income increased to **$3,877 million** for the nine months ended September 30, 2024, from **$3,543 million** in the prior year, with a yield of **4.30%** (up from **4.08%**)[255](index=255&type=chunk) Fixed Maturity Securities by Type (September 30, 2024 vs. December 31, 2023) | Type | Sep 30, 2024 Fair Value (Millions USD) | Sep 30, 2024 % of Total | Dec 31, 2023 Fair Value (Millions USD) | Dec 31, 2023 % of Total | | :---------------- | :------------------------------------- | :---------------------- | :------------------------------------- | :---------------------- | | Publicly-traded | 69,052 | 82.9% | 67,056 | 82.8% | | Privately-placed | 14,246 | 17.1% | 13,935 | 17.2% | | Total | 83,298 | 100.0% | 80,991 | 100.0% | Fixed Maturity Securities by NAIC Designation (September 30, 2024 vs. December 31, 2023) | NAIC Designation | Sep 30, 2024 Estimated Fair Value (Millions USD) | Sep 30, 2024 % of Total | Dec 31, 2023 Estimated Fair Value (Millions USD) | Dec 31, 2023 % of Total | | :---------------- | :----------------------------------------------- | :---------------------- | :----------------------------------------------- | :---------------------- | | Investment grade | 80,954 | 97.2% | 78,589 | 97.0% | | Below investment grade | 2,344 | 2.8% | 2,402 | 3.0% | | Total | 83,298 | 100.0% | 80,991 | 100.0% | - The company maintains a diversified portfolio of corporate fixed maturity securities, with no single issuer exceeding **1%** of total investments and the top ten holdings comprising **2%** of total investments at September 30, 2024[263](index=263&type=chunk) U.S. and Foreign Corporate Fixed Maturity Securities by Industry (September 30, 2024 vs. December 31, 2023) | Industry | Sep 30, 2024 Fair Value (Millions USD) | Sep 30, 2024 % of Total | Dec 31, 2023 Fair Value (Millions USD) | Dec 31, 2023 % of Total | | :--------------- | :------------------------------------- | :---------------------- | :------------------------------------- | :---------------------- | | Industrial | 15,718 | 31.1% | 14,751 | 31.1% | | Finance | 13,831 | 27.4% | 12,957 | 27.3% | | Consumer | 11,487 | 22.8% | 10,683 | 22.6% | | Utility | 6,669 | 13.2% | 6,273 | 13.2% | | Communications | 2,754 | 5.5% | 2,756 | 5.8% | | Total | 50,459 | 100.0% | 47,420 | 100.0% | - The company held **$20.7 billion** in Structured Securities (RMBS, CMBS, ABS) at estimated fair value at September 30, 2024, diversified by security type, risk profile, and ratings[266](index=266&type=chunk) - The mortgage loan portfolio is diversified by geographic region and property type, with **98%** of commercial and agricultural mortgage loans collateralized by U.S. properties, and all residential mortgage loans by U.S. properties[273](index=273&type=chunk) Mortgage Loans by Portfolio Segment (September 30, 2024 vs. December 31, 2023) | Segment | Sep 30, 2024 Amortized Cost (Millions USD) | Sep 30, 2024 % of Total | Dec 31, 2023 Amortized Cost (Millions USD) | Dec 31, 2023 % of Total | | :--------------- | :----------------------------------------- | :---------------------- | :----------------------------------------- | :---------------------- | | Commercial | 13,255 | 57.4% | 13,193 | 58.3% | | Agricultural | 4,521 | 19.6% | 4,445 | 19.6% | | Residential | 5,329 | 23.0% | 5,007 | 22.1% | | Total | 23,105 | 100.0% | 22,645 | 100.0% | Commercial Mortgage Loans by Property Type (September 30, 2024 vs. December 31, 2023) | Property Type | Sep 30, 2024 Amount (Millions USD) | Sep 30, 2024 % of Total | Dec 31, 2023 Amount (Millions USD) | Dec 31, 2023 % of Total | | :--------------- | :--------------------------------- | :---------------------- | :--------------------------------- | :---------------------- | | Apartment | 5,293 | 39.9% | 5,371 | 40.8% | | Office | 3,095 | 23.4% | 3,185 | 24.1% | | Industrial | 2,310 | 17.4% | 2,092 | 15.9% | | Retail | 1,710 | 12.9% | 1,747 | 13.2% | | Hotel | 847 | 6.4% | 798 | 6.0% | | Total | 13,255 | 100.0% | 13,193 | 100.0% | - The average loan-to-value ratio for commercial mortgage loans was **68%** at September 30, 2024 (up from **65%** at December 31, 2023), and the average debt-service coverage ratio was **2.3x** at both periods[276](index=276&type=chunk) Other Invested Assets by Type (September 30, 2024 vs. December 31, 2023) | Asset Type | Sep 30, 2024 Carrying Value (Millions USD) | Sep 30, 2024 % of Total | Dec 31, 2023 Carrying Value (Millions USD) | Dec 31, 2023 % of Total | | :---------------------------------------- | :----------------------------------------- | :---------------------- | :----------------------------------------- | :---------------------- | | Freestanding derivatives with positive estimated fair values | 3,450 | 77.3% | 3,714 | 84.2% | | Company-owned life insurance | 661 | 14.8% | 340 | 7.7% | | Federal Home Loan Bank stock | 242 | 5.4% | 245 | 5.5% | | Leveraged leases, net of non-recourse debt | 49 | 1.1% | 47 | 1.1% | | Tax credit and renewable energy partnerships | 48 | 1.1% | 52 | 1.2% | | Other | 12 | 0.3% | 11 | 0.3% | | Total | 4,462 | 100.0% | 4,409 | 100.0% | [Derivatives](index=86&type=section&id=Derivatives) This section details the company's use of derivative instruments for risk management and their financial impact - The company uses derivatives to manage interest rate, foreign currency exchange rate, credit, and equity market risks, with a significant portion not designated for hedge accounting[280](index=280&type=chunk) - Level 3 derivatives, which involve significant unobservable inputs and management judgment, include credit default swaps and foreign currency swaps[281](index=281&type=chunk) - Credit risk related to derivatives is managed through creditworthy counterparties, master netting agreements, regulated exchanges, and collateral, with no additional credit risk adjustments currently required due to sufficient collateral[282](index=282&type=chunk) Gross Notional Amount and Estimated Fair Value of Written Credit Default Swaps (September 30, 2024 vs. December 31, 2023) | Metric | Sep 30, 2024 Gross Notional (Millions USD) | Sep 30, 2024 Estimated Fair Value (Millions USD) | Dec 31, 2023 Gross Notional (Millions USD) | Dec 31, 2023 Estimated Fair Value (Millions USD) | | :---------------------------------------- | :----------------------------------------- | :----------------------------------------------- | :----------------------------------------- | :----------------------------------------------- | | Written | 1,095 | 20 | 1,405 | 27 | | Total | 1,095 | 20 | 1,405 | 27 | - Embedded derivatives, such as crediting rates on index-linked annuity contracts, are measured at estimated fair value with changes reported in net income[285](index=285&type=chunk) [Policyholder Liabilities](index=87&type=section&id=Policyholder%20Liabilities) This section describes the company's obligations to policyholders, including variable annuity guarantees and their hedging strategies - Actuarially determined liabilities are established for future policy obligations, including benefit payments for annuity and life insurance products[286](index=286&type=chunk)[287](index=287&type=chunk)[288](index=288&type=chunk) - Variable annuity products with guaranteed minimum benefits (GMxB) are classified as Market Risk Benefits (MRBs) and measured at fair value, reported in market risk benefit assets and liabilities[289](index=289&type=chunk)[294](index=294&type=chunk) Variable Annuity Account Value and Net Amount at Risk (NAR) by GMxB Type (September 30, 2024 vs. December 31, 2023) | GMxB Type | Sep 30, 2024 Account Value (Millions USD) | Sep 30, 2024 Death Benefit NAR (Millions USD) | Sep 30, 2024 Living Benefit NAR (Millions USD) | Dec 31, 2023 Account Value (Millions USD) | Dec 31, 2023 Death Benefit NAR (Millions USD) | Dec 31, 2023 Living Benefit NAR (Millions USD) | | :------------------------ | :---------------------------------------- | :-------------------------------------------- | :--------------------------------------------- | :---------------------------------------- | :-------------------------------------------- | :--------------------------------------------- | | GMIB | 32,047 | 3,309 | 3,729 | 32,079 | 4,089 | 3,600 | | GMIB Max with EDB | 7,589 | 5,978 | 628 | 7,605 | 6,092 | 470 | | GMIB Max without EDB | 4,293 | 77 | 159 | 4,344 | 133 | 107 | | GMWB | 20,132 | 200 | 218 | 19,961 | 541 | 249 | | GMAB | 391 | 1 | 1 | 431 | 4 | 4 | | GMDB only (other than EDB) | 17,470 | 944 | — | 16,768 | 1,056 | — | | EDB only | 3,242 | 1,202 | — | 3,109 | 1,325 | — | | Total | 85,164 | 11,711 | 4,735 | 84,297 | 13,240 | 4,430 | Variable Annuity Market Risk Benefits (MRBs) by GMxB Type (September 30, 2024 vs. December 31, 2023) | GMxB Type | Sep 30, 2024 (Millions USD) | Dec 31, 2023 (Millions USD) | | :-------- | :-------------------------- | :-------------------------- | | GMIB | 8,734 | 9,485 | | GMWB | 21 | 41 | | GMDB | 779 | 788 | | Total | 9,534 | 10,314 | Derivatives Hedging Variable Annuity Guarantees (September 30, 2024 vs. December 31, 2023) | Instrument Type | Sep 30, 2024 Gross Notional Amount (Millions USD) | Sep 30, 2024 Estimated Fair Value (Assets/Liabilities) (Millions USD) | Dec 31, 2023 Gross Notional Amount (Millions USD) | Dec 31, 2023 Estimated Fair Value (Assets/Liabilities) (Millions USD) | | :------------------------ | :------------------------------------------------ | :-------------------------------------------------------------------- | :------------------------------------------------ | :-------------------------------------------------------------------- | | Equity index options | 10,620 | 360 / 404 | 16,183 | 472 / 680 | | Equity total return swaps | 108,562 | 1,891 / 1,923 | 53,742 | 2,236 / 2,137 | | Interest rate swaps | 58,241 | 113 / 193 | 30,864 | 92 / 103 | | Interest rate options | 14,900 | 38 / 113 | 27,580 | 39 / 123 | | Interest rate forwards | 7,657 | 17 / 276 | 8,519 | — / 619 | | Hybrid options | — | — / — | 270 | — / — | | Total | 199,980 | 2,419 / 2,909 | 137,158 | 2,839 / 3,662 | [Liquidity and Capital Resources](index=89&type=section&id=Liquidity%20and%20Capital%20Resources) This section discusses the company's ability to meet its financial obligations and maintain adequate capital levels - The company maintains sufficient liquidity and capital to meet business requirements, supported by strong capitalization, business mix, ratings, and diverse funding sources[299](index=299&type=chunk) - Short-term liquidity was **$5.7 billion** at September 30, 2024 (up from **$3.8 billion** at December 31, 2023), and liquid assets were **$51.5 billion** (up from **$45.2 billion**)[299](index=299&type=chunk) - The company manages its capital position to maintain financial strength and credit ratings, targeting a combined risk-based capital (RBC) ratio of **400% to 450%** in normal market conditions[300](index=300&type=chunk) Sources and Uses of Liquidity and Capital (Nine Months Ended September 30) | Metric | Sep 30, 2024 (Millions USD) | Sep 30, 2023 (Millions USD) | | :---------------------------------------- | :-------------------------- | :-------------------------- | | Total sources | 4,071 | 3,562 | | Total uses | 2,292 | 3,838 | | Net increase (decrease) in cash and cash equivalents | 1,779 | (276) | - Primary sources of liquidity include insurance premiums, annuity considerations, net investment income, and funding agreements, while primary uses include benefit payments, operating expenses, debt service, and common stock repurchases[303](index=303&type=chunk)[304](index=304&type=chunk)[305](index=305&type=chunk)[307](index=307&type=chunk) - The company has established various funding agreement programs (FABR, FABCP, FABN, FHLB, Farmer Mac) to provide liquidity and support institutional spread margin business[309](index=309&type=chunk)[310](index=310&type=chunk)[311](index=311&type=chunk) Funding Agreements Issued for Spread Lending Purposes (September 30, 2024 vs. December 31, 2023) | Program | Sep 30, 2024 Aggregate Principal Amount Outstanding (Millions USD) | Dec 31, 2023 Aggregate Principal Amount Outstanding (Millions USD) | | :------------------------ | :--------------------------------------------------------------- | :--------------------------------------------------------------- | | FABR Program | 500 | — | | FABCP Program | 3,002 | 3,442 | | FABN Program | 2,550 | 2,100 | | FHLB Funding Agreements | 4,300 | 4,350 | | Farmer Mac Funding Agreements | 650 | 700 | | Total | 11,002 | 10,592 | - BHF repurchased an additional **506,800 shares** of common stock for **$24 million** between September 30, 2024, and November 1, 2024[315](index=315&type=chunk) - The parent company (BHF) is largely dependent on cash flows from its insurance subsidiaries, with short-term liquidity of **$1.1 billion** at September 30, 2024[322](index=322&type=chunk) - BHF borrowed **$420 million** from non-insurance subsidiaries and repaid **$180 million** under short-term intercompany loan agreements during the nine months ended September 30, 2024[325](index=325&type=chunk) [Note Regarding Forward-Looking Statements](index=98&type=section&id=Note%20Regarding%20Forward-Looking%20Statements) This note cautions readers about the inherent risks and uncertainties associated with forward-looking information - This section contains forward-looking statements that involve substantial risks and uncertainties, and actual results may differ materially due to various known and unknown factors[328](index=328&type=chunk)[329](index=329&type=chunk) - Key risks include differences between actual experience and actuarial assumptions, higher risk management costs, effectiveness of variable annuity risk management, impact of interest rates on ULSG, changes in accounting standards, rating downgrades, competition, third-party service failures, ability of subsidiaries to pay dividends, climate change, public health crises, capital market conditions, investment portfolio risks, regulatory changes, tax legislation, and cyber security[329](index=329&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=99&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section discusses the company's exposure to market risk, defined as changes in estimated fair value resulting from fluctuations in interest rates, equity market prices, credit spreads, and foreign currency exchange rates. It notes that there have been no material changes to these exposures since the 2023 Annual Report - The company has exposure to market risk through its insurance operations and general account investment activities, primarily from changes in interest rates, and to a lesser extent, equity market prices and foreign currency exchange rates[333](index=333&type=chunk) - There have been no material changes to the company's market risk exposures from those previously disclosed in its 2023 Annual Report[334](index=334&type=chunk) [Item 4. Controls and Procedures](index=100&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of September 30, 2024. The report also notes material changes in internal control over financial reporting due to ongoing business process changes, system implementations, and new third-party arrangements - The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective as of September 30, 2024[336](index=336&type=chunk) - Material changes in internal control over financial reporting occurred during the quarter due to ongoing business process changes, system implementations, and new third-party arrangements, including services provided by MetLife on a transitional basis[337](index=337&type=chunk)[338](index=338&type=chunk) [Part II — Other Information](index=100&type=section&id=Part%20II%20%E2%80%94%20Other%20Information) This section provides additional information not covered in the financial statements, including legal proceedings and risk factors [Item 1. Legal Proceedings](index=100&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 13 of the Notes to the Interim Condensed Consolidated Financial Statements for detailed information on legal proceedings, which include various litigation matters, regulatory inquiries, and class action lawsuits - Information regarding legal proceedings is detailed in Note 13 of the Notes to the Interim Condensed Consolidated Financial Statements[339](index=339&type=chunk) [Item 1A. Risk Factors](index=100&type=section&id=Item%201A.%20Risk%20Factors) This section indicates that there have been no material changes to the risk factors previously disclosed in the company's 2023 Annual Report, and directs readers to the 'Note Regarding Forward-Looking Statements' for additional context - There have been no material changes to the risk factors from those previously disclosed in the company's 2023 Annual Report[340](index=340&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=100&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details the common stock repurchases made by Brighthouse Financial during the three months ended September 30, 2024, under its publicly announced repurchase program Issuer Purchases of Equity Securities (Three Months Ended September 30, 2024) | Period | Total Number of Shares Purchased | Average Price Paid per Share | Purchased as Part of Publicly Announced Plans or Programs | Value of Shares that May Yet Be Purchased Under the Plans or Programs (Millions USD) | | :----------------------- | :------------------------------- | :--------------------------- | :-------------------------------------------------------- | :----------------------------------------------------------------------------------- | | July 1 — July 31, 2024 | 467,000 | $46.83 | 467,000 | $645 | | August 1 — August 31, 2024 | 489,232 | $44.14 | 489,232 | $624 | | September 1 — September 30, 2024 | 471,774 | $43.54 | 471,774 | $603 | | Total | 1,428,006 | | 1,428,006 | | - During the three months ended September 30, 2024, Brighthouse Financial repurchased **1,428,006 shares** of its common stock under its publicly announced program[342](index=342&type=chunk) - As of September 30, 2024, **$603 million** remained available for repurchase under the common stock repurchase program[342](index=342&type=chunk) [Item 5. Other Information](index=100&type=section&id=Item%205.%20Other%20Information) This section states that no directors or officers adopted or terminated Rule 10b5-1 trading arrangements during the three months ended September 30, 2024 - None of the company's directors or officers adopted or terminated a Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement during the three months ended September 30, 2024[341](index=341&type=chunk) [Item 6. Exhibits](index=101&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the quarterly report, including certifications, XBRL documents, and a note regarding reliance on statements in contracts - The report includes certifications from the Chief Executive Officer and Chief Financial Officer (Exhibits 31.1, 31.2, 32.1, 32.2) and various XBRL taxonomy extension documents (Exhibits 101.INS, 101.SCH, 101.CAL, 101.LAB, 101.PRE, 101.DEF)[343](index=343&type=chunk) - A note clarifies that agreements included as exhibits are for informational purposes regarding their terms and not intended as factual disclosures, with representations and warranties qualified by disclosures and subject to materiality standards[344](index=344&type=chunk) [Signature](index=102&type=section&id=Signature) This section contains the signature of the registrant, Brighthouse Financial, Inc., by its Executive Vice President and Chief Financial Officer, Edward A. Spehar, dated November 8, 2024 - The report was signed on behalf of Brighthouse Financial, Inc. by Edward A. Spehar, Executive Vice President and Chief Financial Officer, on November 8, 2024[347](index=347&type=chunk)[348](index=348&type=chunk)

Brighthouse Financial (BHF) reported third-quarter 2024 adjusted net income of $3.99 per share, which missed the Zacks Consensus Estimate by 11.3%. The bottom line dropped 4.5% year over year. The results reflected higher expenses.Stay up-to-date with all quarterly releases: See Zack Earnings Calendar.Behind the HeadlinesTotal operating revenues of $2.2 billion increased 4.3% year over year, driven by higher net investment income and other income. However, the top line missed the consensus mark by 1.7%.Prem ...

Brighthouse Financial, Inc. (NASDAQ:BHF) Q3 2024 Earnings Conference Call November 8, 2024 8:00 AM ET Company Participants Dana Amante - Head of Investor Relations Eric Steigerwalt - President & Chief Executive Officer Ed Spehar - Chief Financial Officer David Rosenbaum - Head of Products & Underwriting Conference Call Participants Suneet Kamath - Jefferies Ryan Krueger - KBW John Barnidge - Piper Sandler Alex Scott - Barclays Wes Carmichael - Autonomous Research Operator Good morning, ladies and gentlemen, ...

Updated as of 5:30PM 11/7/2024 Brighthouse Financial, Inc. Third Quarter 2024 Earnings Call Presentation Note regarding forward-looking statements This presentation 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 identif ...

Brighthouse Financial (BHF) reported $2.18 billion in revenue for the quarter ended September 2024, representing a year-over-year increase of 4.3%. EPS of $3.99 for the same period compares to $4.18 a year ago.The reported revenue represents a surprise of -1.69% over the Zacks Consensus Estimate of $2.21 billion. With the consensus EPS estimate being $4.50, the EPS surprise was -11.33%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations t ...

Brighthouse Financial (BHF) came out with quarterly earnings of $3.99 per share, missing the Zacks Consensus Estimate of $4.50 per share. This compares to earnings of $4.18 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -11.33%. A quarter ago, it was expected that this annuity and life insurance company would post earnings of $4.36 per share when it actually produced earnings of $5.57, delivering a surprise of 27.75%.Over the ...

Exhibit 99.2 Brighthouse Financial, Inc. Financial Supplement Third Quarter 2024 ll///// Brighthouse Financial Results 1 Key Metrics 2 GAAP Statements of Operations 3 GAAP Balance Sheets Earnings and Select Metrics from Segments and Corporate & Other 5 Statements of Adjusted Earnings by Segment and Corporate & Other 7 Annuities — Statements of Adjusted Earnings 8 Annuities — Select Operating Metrics 10 Life — Statements of Adjusted Earnings 11 Life — Select Operating Metrics 13 Run-off — Statements of Adjus ...

The upcoming report from Brighthouse Financial (BHF) is expected to reveal quarterly earnings of $4.50 per share, indicating an increase of 7.7% compared to the year-ago period. Analysts forecast revenues of $2.21 billion, representing an increase of 6.1% year over year.The consensus EPS estimate for the quarter has been revised 1% higher over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.B ...