BRIGHTHOUSE FIN(US:BHFAM)2025-08-08 20:10Financial 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 prior year, indicating a decrease of approximately 42.9% [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 in the same period of 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, representing a 74.8% increase [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 $185 million from the same period in 2024 [311]. Operational Challenges - The company experienced unfavorable changes in the estimated fair value of variable annuity guaranteed benefit riders and freestanding interest rate derivatives, impacting overall profitability [279]. - The financial and economic environment, including capital market conditions and inflation, significantly affects the company's operations and profitability [283]. - The company continues to monitor political and economic conditions that may contribute to market volatility, including global inflation and geopolitical conflicts [284]. - The company reported higher operational expenses, impacting overall profitability for the six months ended June 30, 2025 [311]. Regulatory and Compliance - The company is subject to various regulatory developments at both state and federal levels, impacting its operations and compliance requirements [285]. - The effective tax rate for the first half of 2025 was 31%, up from 24% in the same period of 2024 [303]. - The effective tax rate for the three months ended June 30, 2025, was 17%, slightly up from 16% in the prior period [310]. Investment and Asset Management - Adjusted net investment income for Q2 2025 was $1,285 million, slightly down from $1,307 million in Q2 2024 [301]. - The yield on investment income for the three months ended June 30, 2025, was 4.41%, slightly down from 4.52% in the same period of 2024 [349]. - The total fixed maturity securities as of June 30, 2025, amounted to $80,835 million, an increase from $80,055 million at the end of 2024 [353]. - Investment-grade securities represented 97.1% of total fixed maturity securities, with a fair value of $78.535 billion [356]. - The company manages investment risks through asset-type allocation and diversification strategies to mitigate credit and interest rate risks [339]. Liquidity and Capital Management - The company maintained a short-term liquidity position of $4.6 billion at June 30, 2025, down from $5.2 billion at December 31, 2024 [402]. - Liquid assets totaled $48.9 billion as of June 30, 2025, an increase from $48.1 billion as of December 31, 2024 [403]. - The company continuously monitors and adjusts its liquidity and capital plans in light of market conditions and changing needs [401]. - The company authorized a $750 million share repurchase program, which may be executed through various methods at management's discretion [409]. - The company has established intercompany liquidity facilities to provide short-term liquidity across its subsidiaries, with no obligations outstanding under these facilities as of June 30, 2025 [450]. Segment Performance - The company is organized into reportable segments: Annuities, Life, Run-off, and Corporate & Other, which are crucial for analyzing financial results [275]. - Adjusted earnings for the Annuities segment were $332 million for the three months ended June 30, 2025, unchanged from the prior period [315]. - 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 previous year [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 [326]. - Adjusted earnings for the Corporate & Other segment were a loss of $25 million for the three months ended June 30, 2025, a decrease of $27 million from the previous year [331].