Brighthouse Financial's Q4 Earnings & Revenues Miss, Expenses Rise Y/Y

Core Insights - Brighthouse Financial, Inc. (BHF) reported a fourth-quarter 2025 adjusted net income of $3.93 per share, missing the Zacks Consensus Estimate by 24.3% and reflecting a year-over-year decrease of 33.2% [1][8] - Total operating revenues were $2.2 billion, down 4.5% year over year, and also missed the Zacks Consensus Estimate by 2.7% [1][8] - The company's combined risk-based capital (RBC) ratio stood at 456%, exceeding its target range of 400-450%, indicating long-term investment support [1][14] Financial Performance - Premiums collected amounted to $173 million, a decline of 16.4% year over year, missing the Zacks Consensus Estimate by 13.9% [4] - Adjusted net investment income for the quarter was $1.3 billion, down 3.1% year over year, primarily due to reduced institutional spread margin business and lower short-term interest rates, with a yield of 4.44% [5] - Total expenses surged to $1.5 billion, an increase of 314.8% year over year, driven by unfavorable market risk changes and higher amortization of Deferred Acquisition Costs (DAC) and Value of Business Acquired (VOBA) [6][8] Annual Overview - For the full year 2025, Brighthouse reported adjusted earnings per share of $16.1, down 18.1% year over year [7] - Total adjusted revenues for the year were $8.66 billion, a slight decrease of 0.7% year over year, while adjusted net investment income was $5.2 billion, down 0.4% [9] Segment Performance - The Annuities segment recorded adjusted earnings of $304 million, a 9% increase year over year, although it missed estimates by 5.1%. Annuity sales rose 22.1% to $2.7 billion [10] - The Life segment's adjusted earnings fell to $18 million, down 65.4% year over year, despite a 9.1% increase in life insurance sales to $36 million [10] - The Run-off segment reported an adjusted loss of $58 million, wider than the $27 million loss in the previous year, attributed to lower net investment income and underwriting margins [11] - Corporate & Other segment recorded an adjusted loss of $50 million, compared to breakeven results in the prior year, mainly due to higher acquisition-related expenses [12] Financial Position - As of December 31, 2025, cash and cash equivalents were $5.4 billion, up 6.8% year over year [13] - Total stockholders' equity reached $6.8 billion, a 36% increase year over year, with a book value per share of $153.89, up 5.7% [13]