Brighthouse Financial, Inc. · NASDAQ:BHF
Brighthouse Financial — Corporate Update (February 2019)
9 slides from Brighthouse Financial's corporate update, Feb 26, 2019
Slide 1: Brighthouse Financial, Inc. Market Sensitivity Update
Exhibit 99.1 February 2019 Brighthouse Financial, Inc. Market Sensitivity Update
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 ▪ Variable annuity (VA) statutory distributable earnings continue to support our capital return target of $1.5 billion through 2021 in the base case scenario(1) ▪ VA assets continue to exceed the total pre-tax present value of lifetime cash flows across all five scenarios ▪ Managin
Slide 4: VA statutory distributable earnings one of multiple levers for capital return
VA statutory distributable earnings one of multiple levers for capital return Years 1-3(1) 1.6 - 2.6 ▪ Incorporates over $1 billion impact of tax reform and NAIC VA capital reform 0.6 - 1.6 ▪ VA statutory distributable earnings 0.0 – 0.5 consistent with our hedging approach to managing our VA total
Slide 5: Continued balance sheet strength under additional market shocks
Continued balance sheet strength under additional market shocks Equity Markets Interest Rates As of -40% -10% +10% -100 bps +100 bps 12/31/18 Variable Annuity Assets 11.7 18.5 13.1 10.6 13.5 10.8 ($ in billions) CTE98+ Variable annuity capitalization CTE97(1)+ CTE98+ CTE98+ CTE97+ CTE98+ ~$0.3B Sour
Slide 6: VA in-force lifetime PV of cash flows supported by significant block of VA assets
VA in-force lifetime present value (PV) of cash flows supported by significant block of VA assets 2017 10-K Illustrative 2018 10-K PV of Total PV of Total PV of Total Cash Flows as Cash Flows as Cash Flows as Scenario Assumptions of Year End September 30, of Year End 2017 2018(1)(2) 2018(1) ($ billi
Slide 7: Key Takeaways – PV of lifetime cash flows
Key Takeaways – PV of lifetime cash flows ▪ Retained assets on balance sheet exceed PV of product cash flows (net of hedging results) across all five scenarios ▪ Change in cash flow profile in line with expectations for both NAIC VA capital reform and shift from fees to retained assets over time ▪ D
Slide 8: GAAP net income market sensitivity
GAAP net income market sensitivity Impact on VA GAAP net income ($B) Change in Run-off ULSG Hedge Program(1) ($B) 3.0 2018 10-K reflects evolving business 3.0 2.7 Continued mitigation of interest 2.5 mix, and the impact of differences 2.5 rate exposures between the GAAP embedded 2.5 2.3 derivative l
Slide 9: Brighthouse Financial
Brighthouse FINANCIAL®
Brighthouse Financial — Corporate Update (February 2019) on 6ix