Financial Performance - For the three months ended September 30, 2025, net income available to shareholders was $453 million, an increase of 202% compared to $150 million for the same period in 2024[286]. - Adjusted earnings for the three months ended September 30, 2025, were $970 million, up 27% from $767 million in the prior year[287]. - For the nine months ended September 30, 2025, net income available to shareholders was $219 million, compared to a net loss of $360 million for the same period in 2024[288]. - Adjusted earnings for the nine months ended September 30, 2025, reached $1.4 billion, a 40% increase from $1.0 billion in 2024[288]. - Total revenues for the three months ended September 30, 2025, were $1,816 million, a decrease of 10% from $2,018 million in the prior year[322]. - The total expenses for the three months ended September 30, 2025, were $1,231 million, a decrease of 33% from $1,830 million in the prior year[322]. - For the nine months ended September 30, 2025, income available to shareholders before provision for income tax was $243 million, an increase of $736 million from a loss of $493 million in the same period of 2024[326]. - Adjusted earnings for the nine months ended September 30, 2025, were $1.4 billion, an increase of $388 million compared to the same period in 2024[337]. Merger and Regulatory Developments - The company entered into a Merger Agreement on November 6, 2025, with Aquarian Holdings VI L.P., where each share of common stock will be converted into $70.00 per share in cash[290][291]. - The Merger is subject to customary closing conditions, including regulatory approvals and the absence of a Company Material Adverse Effect[293]. - The Inflation Reduction Act established a 15% corporate alternative minimum tax for corporations with average annual adjusted financial statement income exceeding $1.0 billion[298]. - The company is assessing the impact of proposed regulations regarding the corporate alternative minimum tax, which introduces significant uncertainties[299]. - The Company was not subject to the CAMT for the years ended December 31, 2023 and 2024, and does not expect to be subject to it for the year ended December 31, 2025[300]. - The OBBBA, enacted on July 4, 2025, is not expected to have a material impact on the Company[301]. - The CCDAA requires companies with annual revenues exceeding $1.0 billion to report Scope 1 and 2 GHG emissions starting in 2026, and Scope 3 emissions starting in 2027[302]. Economic and Market Conditions - The Federal Reserve decreased the target range for the federal funds rate multiple times in 2024 and 2025, which may negatively impact the company's investment portfolio and profitability[295]. - The company continues to monitor economic conditions, including inflation and market volatility, which could affect its business operations and investment portfolio[296]. - The Federal Reserve decreased the target range for the federal funds rate from 4.25%-4.50% to 4.00%-4.25% on September 17, 2025, and further to 3.75%-4.00% on October 29, 2025[365]. Investment and Portfolio Management - Adjusted net investment income is calculated as GAAP net investment income plus Investment Hedge Adjustments less investment gains on trading securities[314]. - Investment income for the three months ended September 30, 2025, was $1,366 million with a yield of 4.54%, compared to $1,332 million and 4.40% for the same period in 2024[373]. - Adjusted net investment income for the nine months ended September 30, 2025, was $3,910 million, reflecting a yield of 4.31%, compared to $3,877 million and 4.30% for the same period in 2024[373]. - The company has direct exposure to commercial real estate through mortgage loans and structured securities, with ongoing market focus due to hybrid work arrangements[369]. - The company does not expect its general account investments in current sectors to have a material adverse effect on its financial condition[371]. - The company is subject to significant financial risks including credit risk, interest rate risk, and market valuation risk, which could adversely affect its financial condition[366]. Segment Performance - Adjusted earnings for the Annuities segment for the nine months ended September 30, 2025, were $950 million, a decrease of $22 million compared to 2024[342]. - Insurance-related activities resulted in a loss of $499 million for the nine months ended September 30, 2025, compared to a loss of $984 million in 2024[334]. - Adjusted earnings for the Life segment were $40 million for the three months ended September 30, 2025, an increase of $65 million compared to the same period in 2024[344]. - The Run-off segment achieved adjusted earnings of $641 million for the three months ended September 30, 2025, an increase of $178 million year-over-year[350]. - Adjusted earnings for the Corporate & Other segment were a loss of $15 million for the three months ended September 30, 2025, a decrease of $17 million compared to the same period in 2024[356]. Liquidity and Capital Management - The company maintained a substantial short-term liquidity position of $5.2 billion as of both September 30, 2025, and December 31, 2024[429]. - Liquid assets totaled $50.4 billion as of September 30, 2025, compared to $48.1 billion as of December 31, 2024[430]. - The company continuously monitors and adjusts its liquidity and capital plans in response to changing market conditions[428]. - The company aims to maintain capital consistent with its ratings objectives, which may involve adjusting dividend amounts[473]. - The company’s liquidity sources include dividends from insurance subsidiaries, capital markets issuances, and its own cash and cash equivalents[474]. - The company established a stand-alone hedging program for its variable annuity and first generation Shield Annuity contracts in Q3 2025[403]. Credit and Risk Management - The net amount at risk (NAR) for guaranteed minimum income benefits (GMIB) was $3.178 billion, representing 28.0% of the account value of $29.978 billion as of September 30, 2025, compared to $3.660 billion and 33.5% of $30.280 billion as of December 31, 2024[422]. - The total market risk benefits (MRBs) for variable annuities amounted to $8.500 billion as of September 30, 2025, up from $8.307 billion as of December 31, 2024[426]. - The estimated fair value of embedded derivative liabilities related to Shield Annuities was $11.4 billion as of September 30, 2025[425]. - The company reported short-term liquidity of $865 million and liquid assets of $970 million as of September 30, 2025, compared to $912 million and $1.1 billion, respectively, at December 31, 2024[470][471]. - The company has provided indemnities and guarantees to third parties, which may require future payments[468].

Merger Agreement - The merger agreement states that each issued and outstanding share will be converted into the right to receive $70.00 per share in cash[16]. - The Board of Directors of Brighthouse Financial has unanimously approved the merger agreement, determining it to be fair and in the best interests of the company and its stockholders[16]. - The merger will result in Brighthouse Financial becoming a wholly owned subsidiary of Aquarian Holdings[16]. - The merger is subject to the satisfaction of various conditions outlined in the agreement, including stockholder approval[16]. - The agreement includes provisions for the treatment of dissenting shares and the rights of stockholders[16]. - The merger is expected to enhance the strategic position of both companies in the market[16]. - The agreement outlines the corporate governance structure of the surviving corporation post-merger[16]. - The merger is anticipated to close following the fulfillment of regulatory and stockholder requirements[16]. - The effective time of the merger will be when the Certificate of Merger is filed with the Secretary of State of Delaware[112]. - The Surviving Corporation will possess all property, rights, privileges, and powers of both the Company and Merger Sub[113]. - The closing of the merger will occur six business days after the last condition is satisfied or waived[114]. - The certificate of incorporation of the Company will be amended and restated at the effective time[115]. - The bylaws of the Company will be amended to reflect the bylaws of Merger Sub at the effective time[116]. - The initial directors of the Surviving Corporation will be the directors of Merger Sub immediately prior to the effective time[117]. - Each outstanding share will be converted into the right to receive $70.00 per share in cash as part of the merger consideration[119]. - All shares converted into the right to receive the merger consideration will automatically be canceled and cease to exist[120]. - The merger consideration will be adjusted for any changes in the outstanding shares prior to the effective time, including stock splits or dividends[121]. - Excluded shares, including those owned by the parent or held in treasury, will be canceled without consideration[122]. - Company stock options will be deemed fully vested and converted into cash payments based on the merger consideration, with options having an exercise price equal to or greater than the merger consideration being canceled[127]. - Restricted stock units (RSUs) will also be fully vested and converted into cash payments based on the merger consideration[128]. - The company ESPP will be suspended, and no new participants will be allowed after the agreement date, with existing rights being converted into cash payments at the effective time[129]. - The payment fund for the merger consideration will be established prior to the effective time to ensure sufficient cash is available for all shareholders[135]. - Holders of book-entry shares will automatically receive the merger consideration without needing to deliver share certificates[136]. - The company must provide a certificate confirming it is not a "United States real property holding corporation" prior to closing[133]. Financial Performance - The company reported a revenue increase of 15% year-over-year, reaching $1.2 billion in Q3 2023[110]. - User data showed a growth of 25% in active users, totaling 5 million by the end of the quarter[110]. - The company provided guidance for Q4 2023, expecting revenue between $1.3 billion and $1.5 billion, representing a growth of 10% to 25%[110]. - New product launches included a premium subscription service, projected to generate an additional $200 million in annual revenue[110]. - The company is investing $50 million in R&D for new technologies aimed at enhancing user experience[110]. - Market expansion efforts are underway in Europe, with a target to increase market share by 15% by the end of 2024[110]. - The company completed a strategic acquisition of a smaller competitor for $300 million, expected to enhance its product offerings[110]. - Cost reduction strategies implemented are projected to save $30 million annually[110]. - The company reported a net income of $150 million, a 20% increase compared to the previous year[110]. - Customer satisfaction ratings improved to 90%, reflecting the success of recent service enhancements[110]. Corporate Governance and Compliance - The Company has a Debt Commitment Letter that outlines financing arrangements for transactions[33]. - The Company is subject to various economic sanctions and trade laws that may impact its operations[54]. - The Company has established a Deferred Compensation Plan for Non-Management Directors effective as of December 1, 2019[53]. - The Company has a defined process for handling Company Acquisition Proposals that involve significant assets or revenue[34]. - The Company must adhere to Collective Bargaining Agreements as part of its operational framework[32]. - The Company has a defined structure for its Employee Stock Purchase Plan effective April 3, 2024[41]. - The Company is required to maintain compliance with the Internal Revenue Code of 1986[32]. - The Company must consider the impact of general economic conditions on its financial performance[42]. - The Company Board unanimously determined that the Agreement and Transactions are fair and in the best interests of the Company and its stockholders[147]. - The only vote required for the adoption of the Agreement is the affirmative vote of a majority of the outstanding Shares[146]. - The Company is duly incorporated and in good standing under the Laws of the State of Delaware, with all corporate powers necessary to conduct its business[144]. - The Company has made available true, complete, and accurate copies of its Certificate of Incorporation and Bylaws as of the date of the Agreement[144]. - The execution and performance of the Agreement require no action or consent from any Governmental Entity other than certain filings and compliance with applicable laws[148]. - All outstanding shares of Company Capital Stock are fully paid and nonassessable[150]. - The Company has no outstanding obligations to repurchase or redeem any Company Securities, except for Company Equity Awards[151]. - Each Subsidiary of the Company is duly organized and in good standing under the laws of its jurisdiction, with all necessary powers to conduct its business[153]. - The Company has timely filed all required SEC documents since January 1, 2023, with no ongoing SEC reviews or investigations[159]. - The audited financial statements comply with GAAP and fairly present the consolidated financial position of the Company and its Subsidiaries[160]. - There are no undisclosed material liabilities that would be required by GAAP to be reflected on a consolidated balance sheet[171]. - The Company maintains a system of internal control over financial reporting that provides reasonable assurance regarding the reliability of financial reporting[165]. - There have been no significant deficiencies or material weaknesses in internal control over financial reporting since January 1, 2023[167]. - The Company has no obligations related to off-balance sheet arrangements[169]. - The Company has not taken any actions that would require Parent's consent under specified sections since the Company Balance Sheet Date[170]. - There are no pending or threatened litigations that would be material to the Company and its Subsidiaries[172]. - The Company has made available true and complete copies of statutory statements for its Insurance Companies for the years ended December 31, 2022, 2023, and 2024[161]. - The Proxy Statement will comply with applicable requirements of the Exchange Act when filed[163]. - The Company has timely filed all required Tax Returns and paid all due Taxes, ensuring compliance with applicable Laws[174]. - No Tax deficiencies have been asserted against the Company or its Subsidiaries that remain unpaid, settled, or withdrawn[175]. - The Company has not participated in any "listed transaction" as defined by Treasury Regulations, indicating a low risk of tax-related issues[175]. - There are no Encumbrances for Taxes on the Company's assets, ensuring clear ownership[175]. - The Company has complied with all applicable Laws regarding employee benefit plans, with timely contributions made[178]. - No material liabilities related to employee benefit plans have been incurred, ensuring financial stability[181]. - The Company has not maintained any defined benefit pension plans or multiemployer plans, reducing long-term liabilities[180]. - The consummation of the transactions will not trigger any additional payments or benefits to employees, maintaining cost control[186]. - Each Company Stock Option has been granted at an exercise price no less than the fair market value, ensuring compliance with valuation standards[189]. Labor and Compliance - Since January 1, 2023, the Company has not been involved in any collective bargaining agreements with labor unions[190]. - The Company and its Subsidiaries have complied with all applicable labor laws since January 1, 2023, with no material violations reported[191]. - No allegations of sexual harassment or misconduct have been made against any managerial employees since January 1, 2023[192]. - The Company is not delinquent in payments to current or former employees, except for minor arrearages[193]. - The Company has been in full compliance with the WARN Act since January 1, 2023, with no required notifications to employees[196]. - There have been no violations of anti-money laundering or anti-corruption laws since January 1, 2023[198]. - The Company has not received any notices or penalties for non-compliance with economic sanctions or trade laws since January 1, 2023[199]. - The Company and its Subsidiaries are in compliance with applicable environmental laws, with no violations reported[200].

Financial Performance - For the three months ended June 30, 2025, net income available to shareholders was $60 million, compared to $9 million for the same period in 2024, reflecting a significant improvement [278]. - Adjusted earnings for the three months ended June 30, 2025, were $198 million, down from $346 million in the same period of 2024 [278]. - For the six months ended June 30, 2025, the net loss available to shareholders was $234 million, an improvement from a net loss of $510 million for the same period in 2024 [279]. - Adjusted earnings for the six months ended June 30, 2025, were $433 million, compared to $248 million for the same period in 2024 [279]. - Total revenues for Q2 2025 were $871 million, a decrease of 39% from $1,427 million in Q2 2024 [300]. - Net income available to shareholders for Q2 2025 was $60 million, compared to $9 million in Q2 2024, reflecting an increase of 566% [301]. - Adjusted earnings for the three months ended June 30, 2025, were $198 million, a decrease of $148 million compared to the same period in 2024 [309]. - For the six months ended June 30, 2025, adjusted earnings increased to $433 million, up by $185 million from the prior year [311]. Investment Performance - The company experienced unfavorable changes in the estimated fair value of variable annuity guaranteed benefit riders and freestanding interest rate derivatives due to market factors [279]. - The financial results were impacted by net investment losses on mortgage loans and sales of fixed maturity securities [278]. - The total net investment gains (losses) for the three months ended June 30, 2025, were $(39) million, compared to $(120) million in the same period of 2024 [308]. - The investment income yield for the three months ended June 30, 2025, was 4.41%, generating $1,329 million, slightly down from 4.52% and $1,353 million in the same period of 2024 [349]. - The company experienced a net unrealized loss position in its investment portfolio due to interest rate increases, with unrealized losses on fixed maturity securities exceeding unrealized gains as of June 30, 2025 [341]. - The company manages investment risks through asset-type allocation and diversification, employing risk limits to avoid concentrations in any single issuer [339]. Regulatory and Economic Environment - The company is subject to various regulatory frameworks at both state and federal levels, impacting its operations and financial reporting [285]. - The company closely monitors economic conditions, including inflation and interest rates, which could materially affect its financial performance [283]. - The Federal Reserve decreased the target range for the federal funds rate three times in 2024, which may impact the pricing levels of risk-bearing investments and product sales [341]. Segment Performance - The company is one of the largest providers of annuity and life insurance products in the U.S., organized into segments: Annuities, Life, Run-off, and Corporate & Other [275]. - Adjusted earnings for the Annuities segment were $332 million for the three months ended June 30, 2025, unchanged from the prior period, with a pre-tax adjusted earnings of $410 million [314]. - The Life segment reported an adjusted loss of $26 million for the three months ended June 30, 2025, a decrease of $68 million compared to the prior period, primarily due to higher costs associated with insurance-related activities [319]. - The Run-off segment experienced an adjusted loss of $83 million for the three months ended June 30, 2025, an increase of $53 million in losses compared to the prior period, driven by higher net costs associated with insurance-related activities [326]. - The Corporate & Other segment reported an adjusted loss of $25 million for the three months ended June 30, 2025, a decrease of $27 million from the prior period, mainly due to a lower net investment spread [331]. Tax and Expenses - The effective tax rate for Q2 2025 was higher at 31% compared to 24% in Q2 2024, primarily due to the impacts of dividends received deduction and tax credits [302]. - The effective tax rate for the three months ended June 30, 2025, was 17%, slightly up from 16% in the prior year [310]. - The total expenses for Q2 2025 were $778 million, a decrease of 45% from $1,413 million in Q2 2024 [301]. Liquidity and Capital Management - The company maintained a short-term liquidity position of $4.6 billion as of June 30, 2025, compared to $5.2 billion at December 31, 2024 [401]. - Liquid assets totaled $48.9 billion as of June 30, 2025, an increase from $48.1 billion at December 31, 2024 [402]. - The company has established internal liquidity facilities to support its businesses, providing liquidity within and across its regulated and non-regulated entities [445]. - The company’s liquidity management includes conducting cash flow and stress testing to assess potential liquidity needs under various scenarios [403]. - The company authorized a $750 million share repurchase program, which may be executed through various methods at management's discretion [408]. - The company maintains a debt-to-capital ratio aligned with its financial strength and credit ratings, with plans for opportunistic financing [406]. Derivative and Risk Management - The company’s policy is not to offset the fair value amounts recognized for derivatives executed with the same counterparty under the same master netting agreement [382]. - The company’s securities lending program involves obtaining collateral generally equal to 102% of the estimated fair value of the securities loaned, ensuring a robust risk management strategy [365]. - The maximum amount at risk related to written credit default swaps is equal to the corresponding gross notional amount, which is a key strategy for managing corporate credit risk [384].

Financial Performance - Net income available to shareholders for Q2 2025 was $60 million, a significant recovery from a loss of $294 million in Q1 2025[9] - Adjusted earnings for Q2 2025 were $198 million, down from $235 million in Q1 2025, reflecting a decrease of approximately 15.7%[9] - Total revenues for Q2 2025 were $871 million, a decrease from $2.39 billion in Q1 2025, primarily due to net derivative losses[13] - Total adjusted revenues for Q2 2025 reached $2,154 million, a decrease from $2,218 million in Q2 2024, representing a decline of 2.9% year-over-year[16] - Adjusted earnings after provision for income tax for Q2 2025 were $223 million, down from $346 million in Q2 2024, reflecting a decrease of 35.5%[16] - Total revenues for the three months ended June 30, 2025, were $1,500 million, compared to $3,656 million for the same period in 2024, reflecting a significant decline[34] - The combined net income (loss) for the three months ended June 30, 2025, was $(1,600) million, compared to $(961) million for the same period in 2024[34] Expenses and Claims - Total corporate expenses decreased to $202 million in Q2 2025 from $239 million in Q1 2025, a reduction of about 15.5%[9] - Total adjusted expenses for Q2 2025 were $1,885 million, an increase from $1,775 million in Q2 2024, marking a rise of 6.2%[16] - Total expenses for Q2 2025 were $778 million, a decrease from $2.744 billion in Q1 2025[76] - Policyholder benefits and claims increased to $711 million in Q2 2025 from $649 million in Q1 2025[13] - Total benefits and expenses before dividends to policyholders for the same period were $2,400 million, down from $4,027 million year-over-year[34] Capital and Assets - Combined total adjusted capital increased to $5.6 billion in Q2 2025, up from $5.5 billion in Q1 2025[9] - Total assets as of June 30, 2025, were $242.65 billion, an increase from $234.68 billion as of March 31, 2025[14] - The total assets as of June 30, 2025, were $202,900 million, an increase from $198,413 million as of June 30, 2024[37] - The total capital and surplus as of June 30, 2025, was $4,000 million, compared to $3,874 million as of June 30, 2024[37] Investment Performance - Net investment income for Q2 2025 was $1,292 million, compared to $1,316 million in Q2 2024, indicating a slight decline of 1.8%[16] - Net investment income for the Corporate & Other segment in Q2 2025 was $155 million, a decrease from $159 million in Q1 2025[28] - The company reported net investment losses of $39 million in Q2 2025, compared to losses of $83 million in Q1 2025[77] - The adjusted net investment income yield for Q2 2025 was 4.28%, slightly higher than 4.25% in Q1 2025[77] Sales and Premiums - Premiums for Q2 2025 totaled $166 million, down from $181 million in Q2 2024, representing a decline of 8.3%[16] - Total fixed and income annuity sales for Q2 2025 were $505 million, significantly higher than $225 million in Q2 2024, indicating a growth of 124.4%[21] - Shield Level Annuities sales for Q2 2025 were $1,925 million, a slight decrease from $2,023 million in Q2 2024, representing a decline of 4.8%[21] - Total life sales for Q2 2025 were $33 million, a decrease of 8.3% from $36 million in Q1 2025[25] Equity and Returns - Book value per common share rose to $69.57 in Q2 2025, compared to $61.17 in Q1 2025, reflecting an increase of approximately 32.5%[9] - The return on common equity for Q2 2025 was 16.5%, slightly up from 16.4% in Q1 2025[9] - The adjusted return on common equity, excluding AOCI, was 6.9% for Q2 2025, up from 6.3% in Q1 2025[75] - The adjusted earnings per common share for Q2 2025 was $3.43, compared to $4.01 in Q1 2025[73] Risk and Regulatory Compliance - The combined risk-based capital ratio for Q2 2025 was reported at 405%-425%, compared to 420%-440% in Q1 2025[9] - The risk-based capital ratio measures an insurance company's capital relative to its size and risk profile, ensuring compliance with regulatory capital requirements[71] - The total fixed maturity securities amounted to $80,835 million, representing 64.01% of total investments as of June 30, 2025[33] Forward-Looking Statements - Brighthouse Financial's forward-looking statements are subject to various risks and uncertainties that could lead to actual results differing materially from expectations[41] - The company emphasizes the importance of non-GAAP financial measures to enhance understanding of performance, highlighting adjusted earnings and adjusted return on common equity[44][54]

Financial Performance - For the three months ended March 31, 2025, Brighthouse Financial reported a net loss available to shareholders of $294 million, an improvement from a net loss of $519 million in the same period of 2024, reflecting a 43.5% reduction in losses [269]. - Adjusted earnings for the same period were $235 million, compared to an adjusted loss of $98 million in 2024, indicating a significant turnaround in performance [269]. - Total revenues for Q1 2025 were $2,390 million, significantly up from $74 million in Q1 2024, indicating a substantial recovery in performance [292]. - Net income attributable to Brighthouse Financial, Inc. for Q1 2025 was $(268) million, an improvement from $(493) million in Q1 2024, showing a reduction in losses [292]. - Adjusted earnings for Q1 2025 were $235 million, a notable increase of $333 million compared to $(98) million in Q1 2024 [298]. - The Annuities segment reported adjusted earnings of $314 million in Q1 2025, slightly up from $313 million in Q1 2024 [301]. - The Life segment reported adjusted earnings of $9 million, an increase of $45 million from a loss of $36 million in the prior period [306]. - The Run-off segment showed an adjusted loss of $64 million, a reduction of $277 million from a loss of $341 million in the prior period [311]. Market Conditions and Economic Factors - The financial results were impacted by market conditions, including decreasing long-term interest rates, which affected the profitability of variable annuities and other products [272]. - The company continues to monitor economic factors such as inflation, which could increase expenses and affect profitability if costs cannot be passed to policyholders [274]. - The company experienced unfavorable changes in the estimated fair value of variable annuity guaranteed benefit riders and net investment losses, which were partially offset by favorable pre-tax adjusted earnings [269]. - The Federal Reserve's monetary policy changes, including a decrease in the federal funds rate, may affect future product sales and investment pricing levels [321]. - Brighthouse Financial's business is influenced by capital market conditions, with potential adverse effects from volatility and disruptions in financial asset classes [272]. Investment Performance - Adjusted net investment income for Q1 2025 was $1,297 million, compared to $1,254 million in Q1 2024, reflecting a year-over-year increase of 3.4% [292]. - The net investment spread for the Annuities segment increased to $395 million in Q1 2025 from $373 million in Q1 2024, reflecting improved investment performance [301]. - The company experienced higher net fee income of $679 million in Q1 2025, compared to $581 million in Q1 2024, driven by lower ceded costs and improved underwriting margins [297]. - The investment income yield remained stable at 4.39% for both March 31, 2025, and 2024 [329]. - The company manages investment risks through diversification strategies and asset allocation to mitigate potential adverse effects on financial performance [318]. Liquidity and Capital Management - The company maintained a substantial short-term liquidity position of $4.7 billion as of March 31, 2025, down from $5.2 billion at December 31, 2024 [383]. - Liquid assets totaled $48.0 billion at March 31, 2025, slightly decreasing from $48.1 billion at December 31, 2024 [384]. - The company aims to maintain a target combined risk-based capital (RBC) ratio of 400% to 450% under normal market conditions [389]. - The company has a share repurchase program, with repurchases dependent on capital position, liquidity, and market conditions [390]. - There are currently no plans to declare and pay dividends on common stock, with future distributions subject to the Board's discretion [391]. Regulatory and Operational Factors - Regulatory developments at both state and federal levels continue to shape the operational landscape for Brighthouse Financial and its subsidiaries [277]. - The company emphasizes the importance of long-term assumptions about capital market returns and interest rates in its annual actuarial review, which could impact liability valuations and net income [275]. - The company’s capital management process is directly overseen by the Board of Directors and senior management, ensuring sufficient liquidity to meet business requirements [382]. Risk Management - The company manages risk in mortgage loans by generally lending up to 75% of the estimated fair value of the underlying real estate collateral [347]. - The company maintained a diversified portfolio with no single issuer exceeding 1% of total investments, ensuring risk management across its holdings [339]. - The company’s liquidity management includes a rolling 12-month forecast to adjust asset and derivatives mix based on anticipated cash flow needs [385].

Financial Performance - Net income available to shareholders for Q1 2025 was $(294) million, compared to $646 million in Q4 2024 and $(519) million in Q1 2024[9]. - Adjusted earnings for Q1 2025 were $235 million, down from $304 million in Q4 2024 and up from $(98) million in Q1 2024[9]. - Total revenues for Q1 2025 increased to $2,390 million, compared to $1,205 million in Q4 2024 and $74 million in Q1 2024[13]. - Total revenues for the three months ended March 31, 2025, were $2,390 million, significantly up from $74 million in the same period last year[77]. - Combined net income for the three months ended March 31, 2025, was $400 million, a significant recovery from a net loss of $18 million in the same period last year[34]. - Adjusted earnings, less notable items, for the three months ended March 31, 2025, were $245 million, compared to $268 million for the same period in 2024[74]. - The adjusted return on common equity, excluding AOCI, was 6.3% for the quarter ended March 31, 2025, compared to (13.6)% for the same quarter in 2024[76]. Capital and Assets - Combined total adjusted capital as of March 31, 2025, was $5,500 million, up from $5,373 million as of December 31, 2024[9]. - Total assets as of March 31, 2025, were $234,681 million, down from $238,537 million as of December 31, 2024[14]. - Total assets as of March 31, 2025, were $194,000 million, a decrease from $199,778 million as of March 31, 2024[38]. - The total capital and surplus as of March 31, 2025, was $4,100 million, an increase from $4,503 million a year earlier[38]. Risk and Ratios - The combined risk-based capital ratio for Q1 2025 was reported at 420%-440%, compared to 402% in Q4 2024[9]. - The combined risk-based capital ratio improved to a preliminary range of 420%-440% as of March 31, 2025, compared to 415%-435% a year earlier[38]. - The risk-based capital ratio is used to ensure compliance with minimum regulatory capital requirements, reflecting the company's relative size and risk profile[72]. Investment Performance - Net investment income for the Annuities segment increased to $753 million in Q1 2025, up from $676 million in Q1 2024, representing an 11.4% growth[17]. - The investment portfolio reported net investment losses of $(83) million for the three months ended March 31, 2025, compared to $(42) million in the same period last year[78]. - The adjusted net investment income yield for the three months ended March 31, 2025, was 4.25%, consistent with the yield from the same period in 2024[33]. - The adjusted net investment income yield for the quarter ended March 31, 2025, was 4.25%, slightly down from 4.25% in the same quarter of 2024[78]. Sales and Premiums - Premiums in the Annuities segment for Q1 2025 were $65 million, down from $83 million in Q1 2024, reflecting a 21.7% decrease[17]. - Total variable and Shield Level annuity sales for Q1 2025 were $2,122 million, a slight increase from $2,017 million in Q1 2024, reflecting a 5.2% growth[20]. - Fixed index annuities sales decreased to $26 million in Q1 2025 from $191 million in Q1 2024, a significant decline of 86.4%[20]. - Life segment total adjusted revenues for Q1 2025 were $291 million, up from $217 million in Q1 2024, marking a 33.9% increase[22]. - Total life sales reached $36 million for the three months ended March 31, 2025, up from $29 million in the same period last year, representing a 24.1% increase[24]. Expenses - Total corporate expenses for Q1 2025 were $239 million, up from $210 million in Q4 2024[9]. - Total adjusted expenses for Q1 2025 were $1,841 million, a decrease from $2,132 million in Q1 2024, indicating a 13.6% reduction[16]. - Total adjusted expenses for the three months ended March 31, 2025, were $1,841 million, compared to $2,132 million for the same period in 2024[77]. Other Key Metrics - Book value per common share as of March 31, 2025, was $61.17, an increase from $55.60 in Q4 2024[9]. - The return on common equity for Q1 2025 was 16.4%, compared to 9.4% in Q4 2024[9]. - The company emphasizes the importance of non-GAAP financial measures to enhance understanding of performance, including adjusted earnings and adjusted return on common equity[45][55]. - Adjusted earnings reflect revenues less adjusted expenses, with notable items excluded to provide clearer insights into operational performance[49][62]. - Normalized statutory earnings for the three months ended March 31, 2025, were $300 million, compared to a loss of $200 million in the same period in 2024[36].