BRIGHTHOUSE FINA(BHFAP) - 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 decrease[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 an increase of 6.2%[16] - Total expenses for Q2 2025 were $778 million, a decrease from $2,744 million in Q1 2025, indicating a reduction of 71.6%[76] - Policyholder benefits and claims increased to $711 million in Q2 2025 from $649 million in Q1 2025, indicating a rise of approximately 9.5%[13] - Policyholder benefits and claims increased to $213 million in Q2 2025, up 13.9% from $187 million in Q1 2025[23] Capital and Assets - Combined total adjusted capital increased to $5.6 billion as of June 30, 2025, compared to $5.5 billion at the end of Q1 2025[9] - Total assets as of June 30, 2025, were $242.65 billion, an increase from $234.68 billion at the end of Q1 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] - The combined risk-based capital ratio was reported at 405%-425% for Q2 2025, slightly down from 420%-440% in Q1 2025[9] - The combined risk-based capital ratio was reported at 405%-425% as of June 30, 2025, indicating a stable capital position[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 segment was $155 million in Q2 2025, down from $159 million in Q1 2025[28] - Net investment losses for Q2 2025 were $39 million, compared to losses of $83 million in Q1 2025, showing a 53.01% improvement[77] - The investment income yield for Q2 2025 was 4.41%, a slight increase from 4.39% in Q1 2025[77] Sales and Premiums - Premiums for annuities in Q2 2025 were $60 million, down from $63 million in Q2 2024, a decrease of 4.8%[18] - Total variable and Shield Level annuity sales for Q2 2025 were $2,105 million, a slight decrease from $2,183 million in Q2 2024, representing a decline of 3.6%[21] - Life sales for Q2 2025 reached $33 million, a decrease of 8.3% from $36 million in Q1 2025[25] Book Value and Equity - The book value per common share rose to $69.57 in Q2 2025, up from $61.17 in Q1 2025, reflecting an increase of about 25.5%[9] - The adjusted return on common equity, excluding AOCI, improved to 6.9% in Q2 2025 from 6.3% in Q1 2025[75] - Adjusted earnings per common share for Q2 2025 were $3.43, down from $4.01 in Q1 2025, reflecting a decrease of 14.45%[73] Forward-Looking Statements and Risks - 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, including adjusted earnings and adjusted revenues[44] - Adjusted earnings reflect adjusted revenues less adjusted expenses, provision for income tax, net income attributable to noncontrolling interests, and preferred stock dividends[49] - The risk-based capital ratio is used to measure the capital of the insurance company relative to its size and risk profile, ensuring compliance with regulatory capital requirements[71]