Slide 1: Second Quarter 2023 Earnings Call Presentation
Brighthouse Financial, Inc. Second Quarter 2023 Earnings Call Presentation (As updated August 9, 2023)
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 may contain information that includes or is based upon forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-l
Slide 3: Executive summary
Executive summary Financial results and drivers • Estimated combined risk-based capital (RBC) ratio(1) between 430% and 450%; holding company liquid assets of $0.9 billion • Statutory combined total adjusted capital (TAC)(1) of $7.6 billion • 2Q year-to-date normalized statutory loss(1) of $0.1 bill
Slide 4: Net income (loss) available to shareholders; adjusted earnings; adjusted items
Net income (loss) available to shareholders; adjusted earnings; adjusted earnings, less notable items For the Three Months Ended June 30, March 31, June 30, 2023 2023 2022 ($ in millions, except per share) Total Per share (1) Total Per share (1) Total Per share (1) Net income (loss) available to $(2
Slide 5: Annuities
Annuities Adjusted earnings, less notable items(1) Highlights ($ in millions) • Sales flat versus 2Q 2022 • On a quarter-over-quarter basis, results reflect: ◦ Higher expenses, lower fees and higher reserves ◦ Partially offset by higher net investment income • Sequential results reflect: $314 $320 ◦
Slide 6: Life insurance
Life insurance Adjusted earnings, less notable items(1) Highlights ($ in millions) • 32% increase in sales versus 2Q 2022 • On a quarter-over-quarter basis, results reflect: ◦ Higher expenses and a lower underwriting margin ◦ Partially offset by higher net investment income • On a sequential basis,
Slide 7: Run-off segment and Corporate & Other
Run-off segment and Corporate & Other Run-off Adjusted earnings, less notable items(1) Highlights ($ in millions) • On a quarter-over-quarter basis, results reflect: ◦ Lower net investment income, a lower underwriting margin and higher expenses $43 • On a sequential basis, results reflect: ◦ Higher
Slide 8: Robust capital and liquidity position
Robust capital and liquidity position Capital position as of June 30, 2023 • Estimated combined RBC ratio(1) between 430% and 450% • TAC(1) decreased to $7.6 billion Common stock repurchases Holding company liquid assets ($ in millions) ($ in billions) $1.1 $1.0 $1.1 $136 $0.9 $93 $64 $62 2Q23 1Q23
Slide 9: Appendix
Appendix 9
Slide 10: Well-diversified, high-quality investment portfolio
Well-diversified, high-quality investment portfolio Portfolio composition by asset class(1) Key highlights (1) Short-Term Investments Policy Loans • ~$119B in total investments (TI) 1% 1% • ~$86B in fixed maturity securities (FMS) Other Invested Assets 3% Equity Securities 0% ◦ 97% Investment grade
Slide 11: Non-GAAP and Other Financial Disclosures
Non-GAAP and Other Financial Disclosures Our definitions of non-GAAP and other financial measures may differ from those used by other companies. Non-GAAP Financial Disclosures We present certain measures of our performance that are not calculated in accordance with GAAP. We believe that these non-GA
Slide 12: Non-GAAP and Other Financial Disclosures (Cont.)
Non-GAAP and Other Financial Disclosures (Cont.) Adjusted earnings reflects adjusted revenues less (i) adjusted expenses, (ii) provision for income tax expense (benefit), (iii) net income (loss) attributable to noncontrolling interests and (iv) preferred stock dividends. Provided below are the adjus
Slide 13: Non-GAAP and Other Financial Disclosures (Cont.)
Non-GAAP and Other Financial Disclosures (Cont.) Other Financial Disclosures Corporate Expenses Corporate expenses includes functional department expenses, public company expenses, certain investment expenses, retirement funding and incentive compensation; and excludes establishment costs. Notable i
Slide 14: Non-GAAP and Other Financial Disclosures (Cont.)
Non-GAAP and Other Financial Disclosures (Cont.) Other Financial Disclosures (cont.) Sales Life insurance sales consist of 100 percent of annualized new premium for term life, first-year paid premium for whole life, universal life, and variable universal life, and total paid premium for indexed univ
Slide 15: Adjusted earnings by segment and Corporate & Other, less notable items
Adjusted earnings by segment and Corporate & Other, less notable items For the Three Months Ended June 30, March 31, June 30, ($ in millions, post-tax) 2023 2023 2022 Annuities $291 $314 $320 Life $15 $1 $29 Run-off $(16) $(106) $(157) Corporate & Other $(19) $(14) $(48) Adjusted earnings(1) $271 $1
Slide 16: Reconciliation of net income (loss) to adjusted items
Reconciliation of net income (loss) available to shareholders to adjusted earnings, less notable items and net income (loss) available to shareholders per common share to adjusted earnings, less notable items per common share For the Three Months Ended June 30, March 31, June 30, ($ in millions, exc