BRIGHTHSE(BHFAO) - 2025 Q2 - Quarterly Results

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]