Brighthouse Financial, Inc. · NASDAQ:BHF
Brighthouse Financial — Q1 2024 Earnings Presentation
17 slides from Brighthouse Financial's earnings presentation, May 8, 2024
Slide 1: First Quarter 2024 Earnings Call Presentation
Brighthouse Financial, Inc. First Quarter 2024 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 (R BC) ratio(1) between 415% and 435% ; holding company liquid assets of $1.3 billion • Statutory combined total adjusted capital (TAC)(1) of $6.0 billion • Normalized statutory loss(1) of $0.2 billion; reflects
Slide 4: Net income (loss) available to shareholders; adjusted earnings; adjusted earnings, less notable items
Net income (loss) available to shareholders; adjusted earnings; adjusted earnings, less notable items For the Three Months Ended March 31, December 31, March 31, 2024 2023 2023 (1) ($ in millions, except per share) Total Per share Total Per share (1) Total Per share (1) Net income (loss) available t
Slide 5: Annuities
Annuities Adjusted earnings, less notable items(1) Highlights ($ in millions) • Sales increased 3% versus 1Q 2023 • On a quarter-over-quarter basis, results were relatively flat • Sequential results reflect: ◦ Higher fees ◦ Lower expenses $313 $314 ◦ Partially offset by lower net investment income $
Slide 6: Life insurance
Life insurance Adjusted earnings, less notable items(1) Highlights ($ in millions) • 26% increase in sales versus 1Q 2023 $37 • On a quarter-over-quarter basis, results reflect: ◦ Higher underwriting margin ◦ Higher net investment income • On a sequential basis, results reflect: ◦ Higher underwritin
Slide 7: Run-off segment and Corporate & Other
Run-off segment and Corporate & Other Run-off Adjusted earnings (loss), less notable items(1) Highlights ($ in millions) • On a quarter-over-quarter basis, results reflect: ◦ Higher net investment income ◦ Higher underwriting margin ◦ Lower expenses $(48) $(50) • On a sequential basis, results refle
Slide 8: Statutory capital and liquidity position
Statutory capital and liquidity position Capital position as of March 31, 2024 • Estimated combined R BC ratio(1) between 415% and 435% • TAC (1) of ~$6.0 billion reflects: ◦ Impact from a reinsurance premium rate increase retroactive to September 2019, which resulted from the conclusion of a reinsu
Slide 9: Appendix
Appendix 9
Slide 10: High quality, well-diversified investment portfolio
High quality, well-diversified investment portfolio Portfolio composition by asset class(1) Key highlights (1) • ~$123B in total investments (TI) Policy Loans 1% Short-Term Investments 1% • ~$88B in fixed maturity securities (FMS) Equity Securities Other Invested Assets 0% ◦ 97% Investment grade (66
Slide 11: High-quality commercial mortgage loan portfolio
High-quality commercial mortgage loan portfolio Property Type Diversification Key highlights (1) Hotel 6% • $13.2B, 11% of TI, solid credit metrics Retail ◦ 65% loan-to-value (LTV), 2.26x debt service 14% coverage ratio (DSCR) overall ◦ Substantially all loans revalued in 2023 Apartment 40% ◦ Over 8
Slide 12: Non-GAAP and Other Financial Disclosures
Non-GAAP and Other Financial Disclosures Our definitions of non-GAAP and other financial measures may differ from those used by other companies. Non-GAAP Financial Disclosures We present certain measures of our performance that are not calculated in accordance with GAAP. We believe that these non-GA
Slide 13: Non-GAAP and Other Financial Disclosures (Cont.)
Non-GAAP and Other Financial Disclosures (Cont.) Adjusted earnings reflects adjusted revenues less (i) adjusted expenses, (ii) provision for income tax expense (benefit), (iii) net income (loss) attributable to noncontrolling interests and (iv) preferred stock dividends. Provided below are the adjus
Slide 14: Non-GAAP and Other Financial Disclosures (Cont.)
Non-GAAP and Other Financial Disclosures (Cont.) Other Financial Disclosures Corporate Expenses Corporate expenses includes functional department expenses, public company expenses, certain investment expenses, retirement funding and incentive compensation. Notable items Certain of the non-GAAP measu
Slide 15: Non-GAAP and Other Financial Disclosures (Cont.)
Non-GAAP and Other Financial Disclosures (Cont.) Other Financial Disclosures (cont.) Total Adjusted Capital Total adjusted capital primarily consists of statutory capital and surplus, as well as the statutory asset valuation reserve. When referred to as “combined,” represents that of our insurance s
Slide 16: Adjusted earnings by segment and Corporate & Other, less notable items
Adjusted earnings by segment and Corporate & Other, less notable items For the Three Months Ended March 31, December 31, March 31, ($ in millions, post-tax) 2024 2023 2023 Annuities $313 $245 $314 Life $(36) $4 $1 Run-off $(341) $(50) $(106) Corporate & Other $(34) $(22) $(14) Adjusted earnings (los
Slide 17: Reconciliation of net income (loss) available to shareholders to adjusted earnings, less notable items
Reconciliation of net income (loss) available to shareholders to adjusted earnings, less notable items, and net income (loss) available to shareholders per common share to adjusted earnings, less notable items per common share For the Three Months Ended March 31, December 31, March 31, ($ in million
Brighthouse Financial — Q1 2024 Earnings Presentation on 6ix