Slide 1: First Quarter 2022 Earnings Call Presentation
Brighthouse Financial, Inc. First 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 $1.4 billion • Statutory combined total adjusted capital (TAC)(1) of $8.5 billion • Normalized statutory loss(1) of $0.2 billion • Net invest
Slide 4: Net income (loss) available to shareholders; adjusted earnings; adjusted items
Net income (loss) available to shareholders; adjusted earnings; adjusted earnings, less notable items For the Three Months Ended March 31, December 31, March 31, 2022 2021 2021 ($ in millions, except per share) Total Per share (1) 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) • 3% decrease in sales versus 1Q 2021 • On a quarter-over-quarter basis, results reflect: ◦ Higher reserves, lower fees, and higher deferred acquisition costs ("DAC") amortization $361 ◦ Partially offset by lower expenses
Slide 6: Life insurance
Life insurance Adjusted earnings, less notable items(1) Highlights ($ in millions) • 13% decrease in sales versus 1Q 2021 • On a quarter-over-quarter basis, results reflect: ◦ Lower net investment income and a lower underwriting margin ◦ Partially offset by lower expenses • On a sequential basis, re
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: ◦ Lower net investment income and a lower underwriting margin $105 • On a sequential basis, results reflect: ◦ A tax true-up in the pr
Slide 8: Robust capital and liquidity position
Robust capital and liquidity position Capital position as of March 31, 2022 • Estimated combined RBC ratio(1) between 450% and 470% • TAC(1) decreased to $8.5 billion Common stock repurchases Holding company liquid assets ($ in millions) ($ in billions) $158 $149 $1.6 $1.6 $1.4 $1.5 $127 $125 1Q22 4
Slide 9: Appendix
Appendix 9
Slide 10: Non-GAAP and Other Financial Disclosures
Non-GAAP and Other Financial Disclosures Our definitions of non-GAAP and other financial measures may differ from those used by other companies. Non-GAAP Financial Disclosures We present certain measures of our performance that are not calculated in accordance with GAAP. We believe that these non-GA
Slide 11: Non-GAAP and Other Financial Disclosures (Cont.)
Non-GAAP and Other Financial Disclosures (Cont.) Adjusted earnings reflects adjusted revenues less (i) adjusted expenses, (ii) provision for income tax expense (benefit), (iii) net income (loss) attributable to noncontrolling interests and (iv) preferred stock dividends. Provided below are the adjus
Slide 12: Non-GAAP and Other Financial Disclosures (Cont.)
Non-GAAP and Other Financial Disclosures (Cont.) Adjusted Net Investment Income We present adjusted net investment income to measure our performance for management purposes, and we believe it enhances the understanding of our investment portfolio results. Adjusted net investment income represents ne
Slide 13: Non-GAAP and Other Financial Disclosures (Cont.)
Non-GAAP and Other Financial Disclosures (Cont.) Other Financial Disclosures (cont.) Sales Life insurance sales consist of 100 percent of annualized new premium for term life, first-year paid premium for whole life, universal life, and variable universal life, and total paid premium for indexed univ
Slide 14: Adjusted earnings by segment and Corporate & Other, less notable items
Adjusted earnings by segment and Corporate & Other, less notable items For the Three Months Ended March 31, December 31, March 31, ($ in millions, post-tax) 2022 2021 2021 Annuities $311 $390 $336 Life $26 $67 $42 Run-off $16 $(45) $76 Corporate & Other $(59) $(89) $(69) Adjusted earnings(1) $294 $3
Slide 15: Reconciliation of net income (loss) available to shareholders to adjusted items
Reconciliation of net income (loss) available to shareholders to adjusted earnings, less notable items and net income (loss) available to shareholders per common share to adjusted earnings, less notable items per common share For the Three Months Ended March 31, December 31, March 31, ($ in millions