Slide 1: Third Quarter 2022 Earnings Call Presentation
Brighthouse Financial, Inc. Third Quarter 2022 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 450% and 470%; holding company liquid assets of $1.1 billion • Statutory combined total adjusted capital (TAC)(1) of $8.0 billion • 3Q year-to-date normalized statutory earnings(1) of $0.5
Slide 4: Robust capital and liquidity position
Robust capital and liquidity position Capital position as of September 30, 2022 • Estimated combined RBC ratio(1) between 450% and 470% • TAC(1) decreased to $8.0 billion Common stock repurchases Holding company liquid assets ($ in millions) ($ in billions) $158 $1.6 $136 $132 $127 $1.4 $1.1 $1.2 3Q
Slide 5: Net income (loss) available to shareholders; adjusted earnings; adjusted items
Net income (loss) available to shareholders; adjusted earnings; adjusted earnings, less notable items For the Three Months Ended September 30, June 30, September 30, 2022 2022 2021 ($ in millions, except per share) Total Per share (1) Total Per share (1) Total Per share (1) Net income (loss) availab
Slide 6: Annuities
Annuities Adjusted earnings, less notable items(1) Highlights ($ in millions) • 58% increase in sales versus 3Q 2021 • On a quarter-over-quarter basis, results reflect: ◦ Lower fees, higher reserves and higher deferred acquisition costs ("DAC") amortization ◦ Partially offset by lower expenses $343
Slide 7: Life insurance
Life insurance Adjusted earnings, less notable items(1) Highlights ($ in millions) • 30% decrease in sales versus 3Q 2021 • On a quarter-over-quarter basis, results reflect: $107 ◦ Lower net investment income and a lower underwriting margin • On a sequential basis, results reflect: ◦ Lower net inves
Slide 8: Run-off segment and Corporate & Other
Run-off segment and Corporate & Other Run-off Adjusted earnings, less notable items(1) Highlights ($ in millions) • On a quarter-over-quarter basis, results reflect: ◦ Lower net investment income and a lower $127 underwriting margin $34 • On a sequential basis, results reflect: ◦ Lower net investmen
Slide 9: Long-duration targeted improvements ("LDTI")
Long-duration targeted improvements ("LDTI") LDTI does not impact statutory results, cash flows, or the economics of our business • We estimate LDTI to have a $6 billion to $8 billion impact to total stockholders' equity at 12/31/21, with approximately half impacting accumulated other comprehensive
Slide 10: Appendix
Appendix 10
Slide 11: Non-GAAP and Other Financial Disclosures
Non-GAAP and Other Financial Disclosures Our definitions of non-GAAP and other financial measures may differ from those used by other companies. Non-GAAP Financial Disclosures We present certain measures of our performance that are not calculated in accordance with GAAP. We believe that these non-GA
Slide 12: Non-GAAP and Other Financial Disclosures (Cont.)
Non-GAAP and Other Financial Disclosures (Cont.) Adjusted earnings reflects adjusted revenues less (i) adjusted expenses, (ii) provision for income tax expense (benefit), (iii) net income (loss) attributable to noncontrolling interests and (iv) preferred stock dividends. Provided below are the adjus
Slide 13: Non-GAAP and Other Financial Disclosures (Cont.)
Non-GAAP and Other Financial Disclosures (Cont.) Adjusted Net Investment Income We present adjusted net investment income to measure our performance for management purposes, and we believe it enhances the understanding of our investment portfolio results. Adjusted net investment income represents ne
Slide 14: Non-GAAP and Other Financial Disclosures (Cont.)
Non-GAAP and Other Financial Disclosures (Cont.) Other Financial Disclosures (cont.) Sales Life insurance sales consist of 100 percent of annualized new premium for term life, first-year paid premium for whole life, universal life, and variable universal life, and total paid premium for indexed univ
Slide 15: Adjusted earnings by segment and Corporate & Other, less notable items
Adjusted earnings by segment and Corporate & Other, less notable items For the Three Months Ended September 30, June 30, September 30, ($ in millions, post-tax) 2022 2022 2021 Annuities $125 $204 $385 Life $(7) $23 $110 Run-off $(21) $(164) $38 Corporate & Other $— $(39) $(83) Adjusted earnings(1) $
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