Brighthouse Financial, Inc. · NASDAQ:BHF
Brighthouse Financial — Investor Presentation (September 2023)
7 slides from Brighthouse Financial's investor presentation, Sep 20, 2023
Slide 1: Long-Term Statutory Free Cash Flow Projections
Brighthouse Financial Long-Term Statutory Free Cash Flow (“FCF”) Projections September 20, 2023 Note: All references to statutory free cash flows within this document are projected. Actual results may differ. See “Note regarding forward-looking statements” on slide 2 for additional information.
Slide 2: Note regarding forward-looking statements
Note regarding forward-looking statements This presentation and other oral or written statements that we make from time to time contains information that includes or is based upon forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-look
Slide 3: Executive summary
Executive summary 3 • Business mix shift continues to drive increase in franchise value • Improved risk profile with significant low interest rate protection added in 2022 • More predictable statutory free cash flow • Anticipate subsidiary dividends across a range of scenarios
Slide 4: Meaningful shift toward less capital-intensive business
Meaningful shift toward less capital-intensive business 4 2023* VA Capital IntensiveVariable Annuity (“VA”) Non-Capital Intensive Shield Fixed & Income Fixed Index Annuity 2016 Annuity account value by product type 2027E 49% 36% 2% 13% 36% 24% 23% 13% 4% *As of 6/30/2023 27% 18%40% 9% 6%
Slide 5: Meaningful statutory FCF across scenarios
Normal Scenario SA return of 6.5% 10-year UST to 3.75% in 10 years Moderate Scenario SA return of 4.0% Interest rates follow the forward curve Adverse Scenario 25% equity shock, then 6.5% SA return 10-year UST shock to 1.0% Material credit downturn Meaningful statutory FCF across scenarios ~$2.0 ~$1
Slide 6: Substantial improvement in statutory FCF predictability
Substantial improvement in statutory FCF predictability 6 Years Normal Moderate Adverse Moderate / Normal Adverse / Normal 1 to 5 ~$2.6B ~$0.2B $0.0B ~10% NM(2) FCF Projections Based on YE 2021(1) Years Normal Moderate Adverse Moderate / Normal Adverse / Normal 1 to 5 ~$2.0B ~$1.5B ~$1.0B ~75% ~50%
Slide 7: Key takeaways
Key takeaways 7 • Business mix shift continues to drive increase in franchise value • Improved risk profile with significant low interest rate protection added in 2022 • More predictable statutory free cash flow • Anticipate subsidiary dividends across a range of scenarios
Brighthouse Financial — Investor Presentation (September 2023) on 6ix