Slide 1: Third Quarter 2023 Earnings Call Presentation
Brighthouse Financial, Inc. Third Quarter 2023 Earnings Call Presentation
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 400% and 420%; holding company liquid assets of $0.9 billion • Statutory combined total adjusted capital (TAC)(1) of $7.3 billion • 3Q year-to-date normalized statutory loss(1) of $0.2 bill
Slide 4: Net income (loss) available to shareholders; adjusted earnings; adjusted items
Net income (loss) available to shareholders; adjusted earnings; adjusted earnings, less notable items For the Three Months Ended September 30, June 30, September 30, 2023 2023 2022 ($ in millions, except per share) Total Per share (1) Total Per share (1) Total Per share (1) Net income (loss) availab
Slide 5: Annuities
Annuities Adjusted earnings, less notable items(1) Highlights ($ in millions) • Sales decreased 30% versus 3Q 2022 • On a quarter-over-quarter basis, results reflect: ◦ Higher net investment income ◦ Partially offset by lower fees • Sequential results reflect: ◦ Higher net investment income and lowe
Slide 6: Life insurance
Life insurance Adjusted earnings, less notable items(1) Highlights ($ in millions) • 32% increase in sales versus 3Q 2022 • On a quarter-over-quarter basis, results reflect: $15 ◦ Higher net investment income ◦ Partially offset by lower underwriting margin • On a sequential basis, results reflect: ◦
Slide 7: Run-off segment and Corporate & Other
Run-off segment and Corporate & Other Run-off Adjusted earnings, less notable items(1) Highlights ($ in millions) • On a quarter-over-quarter basis, results reflect: ◦ Higher net investment income and higher underwriting margin $1 • On a sequential basis, results reflect: $(16) ◦ Higher underwriting
Slide 8: Statutory capital and liquidity position
Statutory capital and liquidity position Capital position as of September 30, 2023 • Estimated combined RBC ratio(1) between 400% and 420% • TAC(1) decreased to $7.3 billion Common stock repurchases Holding company liquid assets ($ in millions) ($ in billions) $1.1 $1.0 $0.9 $0.9 $93 $64 $64 $62 3Q2
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 • ~$120B in total investments (TI) 1% 1% • ~$86B in fixed maturity securities (FMS) Other Invested Assets 3% Equity Securities 0% ◦ 97% Investment grade
Slide 11: Non-GAAP and Other Financial Disclosures
Non-GAAP and Other Financial Disclosures Our definitions of non-GAAP and other financial measures may differ from those used by other companies. Non-GAAP Financial Disclosures We present certain measures of our performance that are not calculated in accordance with GAAP. We believe that these non-GA
Slide 12: Non-GAAP and Other Financial Disclosures (Cont.)
Non-GAAP and Other Financial Disclosures (Cont.) Adjusted earnings reflects adjusted revenues less (i) adjusted expenses, (ii) provision for income tax expense (benefit), (iii) net income (loss) attributable to noncontrolling interests and (iv) preferred stock dividends. Provided below are the adjus
Slide 13: Non-GAAP and Other Financial Disclosures (Cont.)
Non-GAAP and Other Financial Disclosures (Cont.) Other Financial Disclosures Corporate Expenses Corporate expenses includes functional department expenses, public company expenses, certain investment expenses, retirement funding and incentive compensation; and excludes establishment costs. Notable i
Slide 14: Non-GAAP and Other Financial Disclosures (Cont.)
Non-GAAP and Other Financial Disclosures (Cont.) Other Financial Disclosures (cont.) Sales Life insurance sales consist of 100 percent of annualized new premium for term life, first-year paid premium for whole life, universal life, and variable universal life, and total paid premium for indexed univ
Slide 15: Adjusted earnings by segment and Corporate & Other, less notable items
Adjusted earnings by segment and Corporate & Other, less notable items For the Three Months Ended September 30, June 30, September 30, ($ in millions, post-tax) 2023 2023 2022 Annuities $319 $291 $202 Life $(73) $15 $(34) Run-off $95 $(16) $(16) Corporate & Other $(15) $(19) $(37) Adjusted earnings(
Slide 16: Reconciliation of net income (loss) available to shareholders to adjusted items
Reconciliation of net income (loss) available to shareholders to adjusted earnings, less notable items and net income (loss) available to shareholders per common share to adjusted earnings, less notable items per common share For the Three Months Ended September 30, June 30, September 30, ($ in mill