Brighthouse Financial, Inc. · NASDAQ:BHF
Brighthouse Financial — Q2 2024 Earnings Presentation
17 slides from Brighthouse Financial's earnings presentation, Aug 8, 2024
Slide 1: Brighthouse Financial, Inc. Second Quarter 2024 Earnings Call Presentation
Brighthouse Financial, Inc. Second 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 (RBC) ratio(1) between 380% and 400%; expect to return to target RBC ratio range in next six to twelve months • Holding company liquid assets of $1.2 billion • Statutory combined total adjusted capital (TAC)(1) o
Slide 4: Net income (loss) available to shareholders; adjusted earnings
Net income (loss) available to shareholders; adjusted earnings (loss); adjusted earnings, less notable items For the Three Months Ended June 30, March 31, June 30, 2024 2024 2023 (1) ($ in millions, except per share) Total Per share Total Per share (1) Total Per share (1) Net income (loss) available
Slide 5: Annuities
Annuities Adjusted earnings, less notable items(1) Highlights ($ in millions) • Sales decreased 3% versus 2Q 2023 • On a quarter-over-quarter basis, results reflect: ◦ Higher fees ◦ Lower expenses ◦ Higher underwriting margin ◦ Higher net investment income $332 $313 • Sequential results reflect: $29
Slide 6: Life insurance
Life insurance Adjusted earnings, less notable items(1) Highlights ($ in millions) • 12% increase in sales versus 2Q 2023 $42 • On a quarter-over-quarter basis, results reflect: ◦ Higher underwriting margin $37 ◦ Lower expenses • On a sequential basis, results reflect: ◦ Higher net investment income
Slide 7: Run-off segment and Corporate & Other
Run-off segment and Corporate & Other Run-off Adjusted earnings (loss), less notable items(1) Highlights ($ in millions) • On a quarter-over-quarter basis, results reflect: ◦ Lower underwriting margin ◦ Partially offset by lower expenses ($16) • On a sequential basis, results reflect: $(30) ◦ Higher
Slide 8: Statutory capital and liquidity position
Statutory capital and liquidity position Capital position as of June 30, 2024 • Estimated combined RBC ratio(1) between 380% and 400%; expect to return to target RBC ratio range in next six to twelve months • TAC(1) of $5.4 billion reflects the underlying performance of our VA and Shield book of bus
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) Policy Loans Short-Term Investments 1% • ~$123B in total investments (TI) 1% • ~$88B in fixed maturity securities (FMS) Other Invested Assets 3% Equity Securities 0% ◦ 97% Investment grade
Slide 11: High-quality commercial mortgage loan portfolio
High-quality commercial mortgage loan portfolio Property Type Diversification Key highlights (1) Hotel 7% • $13.1B, 11% of TI, solid credit metrics ◦ 66% loan-to-value (LTV), 2.3x debt service Retail 13% coverage ratio (DSCR) overall ◦ Substantially all loans revalued in 2023 Apartment 40% ◦ Over 87
Slide 12: Non-GAAP and Other Financial Disclosures
Non-GAAP and Other Financial Disclosures Our definitions of non-GAAP and other financial measures may differ from those used by other companies. Non-GAAP Financial Disclosures We present certain measures of our performance that are not calculated in accordance with GAAP. We believe that these non-GA
Slide 13: Non-GAAP and Other Financial Disclosures (Cont.)
Non-GAAP and Other Financial Disclosures (Cont.) Adjusted earnings reflects adjusted revenues less (i) adjusted expenses, (ii) provision for income tax expense (benefit), (iii) net income (loss) attributable to noncontrolling interests and (iv) preferred stock dividends. Provided below are the adjus
Slide 14: Non-GAAP and Other Financial Disclosures (Cont.)
Non-GAAP and Other Financial Disclosures (Cont.) Adjusted Net Investment Income Yield Similar to adjusted net investment income, we present adjusted net investment income yield as a performance measure we believe enhances the understanding of our investment portfolio results. Adjusted net investment
Slide 15: Non-GAAP and Other Financial Disclosures (Cont.)
Non-GAAP and Other Financial Disclosures (Cont.) Other Financial Disclosures (cont.) Holding Company Liquid Assets Holding company liquid assets include liquid assets in Brighthouse Financial, Inc., Brighthouse Holdings, LLC, and Brighthouse Services, LLC. Liquid assets are comprised of cash and cas
Slide 16: Adjusted earnings by segment and Corporate & Other, less notable items
Adjusted earnings by segment and Corporate & Other, less notable items For the Three Months Ended June 30, March 31, June 30, ($ in millions, post-tax) 2024 2024 2023 Annuities $332 $313 $291 Life $42 $(36) $15 Run-off $(30) $(341) $(16) Corporate & Other $2 $(34) $(19) Adjusted earnings (loss)(1) $
Slide 17: Reconciliation of net income (loss) 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 June 30, March 31, June 30, ($ in millions, ex
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