BRIGHTHOUSE FINA(BHFAP) - 2025 Q4 - Annual Results

Financial Performance - Net income available to shareholders for Q4 2025 was $112 million, a decrease from $453 million in Q3 2025[9] - Adjusted earnings for Q4 2025 were $214 million, down from $970 million in the previous quarter[9] - Total revenues for Q4 2025 were $1,689 million, compared to $1,816 million in Q3 2025[13] - Total adjusted revenues for Q4 2025 reached $2,174 million, a decrease of 4.4% from $2,273 million in Q4 2024[16] - Adjusted earnings after provision for income tax for Q4 2025 were $240 million, down from $304 million in Q4 2024, reflecting a decline of 21.1%[16] - For the year ended December 31, 2025, total adjusted revenues were $8,655 million, a decrease of 0.7% compared to $8,718 million in 2024[17] - Adjusted earnings after provision for income tax for the year 2025 were $1,617 million, a decrease of 22.5% from $1,319 million in 2024[17] - Total revenues for the three months ended December 31, 2025, were $3,000 million, compared to $2,293 million in the previous quarter[34] - The combined net income for the three months ended December 31, 2025, was $100 million, a significant improvement from a loss of $1,333 million in the previous quarter[34] Capital and Assets - Combined total adjusted capital as of December 31, 2025, was $5,300 million, slightly down from $5,400 million in September 2025[9] - Total assets as of December 31, 2025, were $241,800 million, a decrease from $244,679 million at the end of Q3 2025[14] - The total assets as of December 31, 2025, were $201,000 million, compared to $198,370 million as of December 31, 2024[38] - The total capital and surplus as of December 31, 2025, was $3,900 million, slightly up from $3,879 million in the previous year[38] Risk and Capital Ratios - The combined risk-based capital ratio improved to 456% in Q4 2025, up from a range of 435%-455% in Q3 2025[9] - The combined risk-based capital ratio as of December 31, 2025, was 456%, an increase from the previous year's 402%[38] - The risk-based capital ratio is utilized to measure the company's capital relative to its size and risk profile, ensuring compliance with regulatory requirements[72] Investment Income - Net investment income for Q4 2025 was $1,334 million, compared to $1,376 million in Q4 2024, indicating a decline of 3.1%[16] - Net investment losses for Q4 2025 were $23 million, a decrease from losses of $73 million in Q4 2024[80] - Adjusted net investment income yield for Q4 2025 was 4.44%, an increase from 4.51% in Q4 2024[80] - Net investment income for the Run-off segment in Q4 2025 was $305 million, an increase from $292 million in Q3 2025[26] Expenses - Total corporate expenses increased to $234 million in Q4 2025, compared to $205 million in Q3 2025[9] - Total adjusted expenses for Q4 2025 were $1,894 million, an increase of 1.2% from $1,872 million in Q4 2024[16] - Total adjusted expenses for Q4 2025 were $279 million, compared to $248 million in Q3 2025, reflecting a 12.5% increase[23] Sales and Premiums - Premiums for the Annuities segment in Q4 2025 were $72 million, down from $81 million in Q4 2024, a decrease of 11.1%[18] - Total variable and shield level annuity sales for Q4 2025 were $2,263 million, an increase of 9.4% from $2,069 million in Q4 2024[21] - Fixed index annuities sales for Q4 2025 were $142 million, an increase of 129.0% compared to $62 million in Q4 2024[21] - Total life sales for Q4 2025 reached $36 million, a 5.3% increase compared to $34 million in Q3 2025[25] Shareholder Metrics - Book value per common share increased to $88.66 in Q4 2025, compared to $81.60 in Q3 2025[9] - The company’s common stockholders' equity, excluding AOCI, was $4,101 million as of December 31, 2025, up from $3,054 million a year earlier[77] - The adjusted return on common equity, excluding AOCI, was 19.0% for Q4 2025, compared to 16.2% in Q4 2024[77] Other Notable Points - The company emphasized the importance of adjusted revenues and adjusted expenses in evaluating performance, excluding market volatility impacts[50] - Forward-looking statements indicate potential risks and uncertainties that could materially affect future results, including regulatory approvals and market conditions[42] - Life insurance sales accounted for 100% of annualized new premium for term life and first-year paid premium for whole life, universal life, and variable universal life[69] - Annuity sales represented 100% of direct statutory premiums, excluding certain internal exchanges, indicating significant business activity[70] - Normalized statutory earnings (loss) incorporates the effectiveness of the hedging program and other factors, aiding in future distribution capabilities[71] - The company highlighted the significance of total adjusted capital, which includes statutory capital and surplus[68]