Brighthouse Financial Q3 Earnings Miss Estimates, Premiums Fall Y/Y

Core Insights - Brighthouse Financial, Inc. (BHF) reported third-quarter 2025 adjusted net income of $4.54 per share, missing the Zacks Consensus Estimate by 10.8%, but showing a year-over-year increase of 13.7% [1][9] - Total operating revenues reached $2.2 billion, a slight increase of 0.3% year over year, primarily driven by higher net investment income [2][9] - Premiums decreased by 5.5% year over year to $170 million [2] Financial Performance - Adjusted net investment income was $1.3 billion, up 2.5% year over year, mainly due to higher alternative investment income, with an adjusted investment income yield of 4.40% [2] - Total expenses were $1.2 million, reflecting a significant decrease of 32.7% year over year, while corporate expenses increased by 0.9% to $205 million [3] Segment Performance - Annuities segment recorded adjusted earnings of $304 million, down 7% year over year, despite an 8% increase in annuity sales to $2.7 billion [4] - Life insurance segment saw adjusted earnings of $40 million, a recovery from a loss of $25 million in the previous year, with sales increasing by 27% to $38 million [4] - Run-off segment's adjusted earnings rose by 38.4% year over year to $641 million, attributed to higher underwriting margins and net investment income [5] Financial Position - Cash and cash equivalents increased by 17.3% year over year to $6.6 billion [6] - Shareholders' equity reached $6.4 billion, up 15.2% year over year, with a book value per share of $151.94, reflecting a 14.3% increase [6] - Statutory combined total adjusted capital was $5.4 billion, down 5.2% year over year [6] Capital Adequacy - As of September 30, 2025, the estimated combined risk-based capital ratio was between 435% and 455% [7] - The company expects to maintain the combined RBC ratio target range of 400% to 450% under normal market conditions by the end of 2025 [8]