Brighthouse Financial Q4 Earnings Miss, Revenues Beat Estimates

Core Insights - Brighthouse Financial (BHF) reported fourth-quarter 2024 adjusted net income of $5.88 per share, missing the Zacks Consensus Estimate by 32.4%, but showing a year-over-year increase of 101.4% due to lower expenses [1] Financial Performance - Total operating revenues reached $2.3 billion, a 62.4% increase year over year, driven by higher net investment income and other income, surpassing the consensus mark by 1.9% [2] - Premiums amounted to $207 million, reflecting an 8.4% decrease year over year [2] - Adjusted net investment income was $1.4 billion, up 12.2% year over year, primarily due to asset growth, with an adjusted investment income yield of 4.51% [2] Expense Management - Total expenses were $371 million, down 85.6% year over year, attributed to favorable changes in market risk benefits [3] - Corporate expenses, pretax, were $210 million, a decrease of 13.9% year over year [3] Segment Performance - Annuities segment reported adjusted operating income of $279 million, up 13.9% year over year, despite an 18.3% decline in annuity sales to $2.5 billion [4] - Life segment's adjusted operating income was $52 million, a 13-fold increase year over year, with life insurance sales rising 18.9% to $33 million [5] - Run-off segment achieved adjusted operating income of $27 million, recovering from a loss of $50 million in the previous year [5] - Corporate & Other segment broke even, compared to a loss of $22 million in the prior year, driven by a higher tax benefit and lower expenses [6] Financial Position - Cash and cash equivalents were $5 billion, up 31% year over year [7] - Shareholders' equity stood at $5 billion, a 0.3% increase year over year [7] - Book value per share, excluding accumulated other comprehensive income, was $145.63 as of December 31, 2024, reflecting an 8.9% year-over-year increase [7] - Statutory combined total adjusted capital was $5.4 billion as of September 30, 2024, down 14.3% year over year [7] - Estimated combined risk-based capital ratio was 400% as of December 31, 2024 [7] Share Buyback Activity - Brighthouse repurchased shares worth $250 million in 2024 and an additional $25 million through February 7, 2025 [9]