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]

Core Insights - Brighthouse Financial reported a significant increase in net income for Q3 2025, reaching $453 million or $7.89 per diluted share, compared to $150 million or $2.47 per diluted share in Q3 2024 [3][12] - The company completed its annual actuarial review, resulting in a favorable impact of $316 million on net income, alongside an increase in the long-term mean reversion interest rate assumption for the 10-year U.S. Treasury from 4.00% to 4.50% [4][8] - A definitive merger agreement was announced with Aquarian Capital LLC, valuing the transaction at approximately $4.1 billion, or $70.00 per share [8][11] Financial Performance - Adjusted earnings for Q3 2025 were reported at $970 million, or $16.87 per diluted share, up from $767 million, or $12.58 per diluted share in Q3 2024 [7][12] - The company’s common stockholders' equity at the end of Q3 2025 was $4.7 billion, or $81.60 per common share, with book value excluding AOCI at $8.7 billion, or $151.94 per common share [5][12] - Annuity sales increased by 8% quarter-over-quarter and 5% sequentially, driven by record sales of Shield Level Annuities [10][16] Segment Performance - The Annuities segment reported adjusted earnings of $304 million, down from $327 million in Q3 2024 [13] - The Life segment showed adjusted earnings of $40 million, a recovery from adjusted losses of $25 million in Q3 2024 [17] - The Run-off segment had adjusted earnings of $641 million, compared to $463 million in Q3 2024 [20] Sales and Market Activity - Total annuity sales for Q3 2025 were $2.7 billion, with life sales reaching $38 million, reflecting a 27% increase quarter-over-quarter [10][19] - The company’s estimated combined risk-based capital (RBC) ratio was between 435% and 455%, at the upper end of the target range of 400% to 450% [11][29] Investment Income - Net investment income for Q3 2025 was $1,334 million, with an adjusted net investment income of $1,327 million, reflecting increases driven by higher alternative investment income [27][26] - The adjusted net investment income yield was reported at 4.40% during the quarter [27][69]

Core Viewpoint - Brighthouse Financial, Inc. (BHF) reported a first-quarter 2025 adjusted net income of $4.17 per share, missing the Zacks Consensus Estimate by 11.6%, with a year-over-year decline of 1.8% in the bottom line, attributed to lower premiums and rising expenses, although offset by improved adjusted net investment income [1][2] Financial Performance - Total operating revenues reached $2.2 billion, reflecting a 6.1% increase year over year, driven by higher universal life and investment-type product policy fees and net investment income [1] - Premiums amounted to $186 million, down 7.9% year over year, compared to an estimate of $218.3 million [2] - Adjusted net investment income was $1.3 billion, up 2% year over year, primarily due to asset growth, with an investment income yield of 4.25% [2] - Total expenses were $2.7 billion, nearly four times higher year over year, exceeding the estimate of $995.5 million [2] Segment Performance - Annuities segment reported adjusted operating income of $314 million, a slight increase of 0.3% year over year, while annuity sales decreased by 21% to $2.3 billion, mainly due to lower fixed annuity sales [3] - Life insurance segment achieved adjusted operating earnings of $9 million, recovering from a loss of $36 million in the previous year, with life insurance sales increasing by 24% quarter over quarter to $36 million [4] - Run-off segment recorded an adjusted operating loss of $64 million, wider than the previous year's loss of $34 million, attributed to lower net investment income [4] - Corporate & Other segment incurred an adjusted operating loss of $24 million, an improvement from a loss of $34 million in the prior year [5] Financial Position - Cash and cash equivalents stood at $4.7 billion, a 22% increase year over year [6] - Shareholders' equity reached $5.2 billion, up 25% year over year [6] - Book value per share, excluding accumulated other comprehensive income, was $141.87 as of March 31, 2025, reflecting a 12.3% increase year over year [6] - Statutory combined total adjusted capital was $5.5 billion, down 8.3% year over year, with an estimated combined risk-based capital ratio of 420-440% [6] Share Buyback Activity - Brighthouse Financial repurchased shares worth $59 million in the first quarter of 2025, with an additional $26 million on a trade date basis through May 6, 2025 [7]