Slide 1: Brighthouse Financial, Inc. First Quarter 2025 Earnings Call Presentation
Brighthouse Financial, Inc. First Quarter 2025 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 between 420% and 440%(1) 420%-440% • Holding company liquid assets of $1.0 billion • Statutory combined total adjusted capital (TAC) of $5.5 billion(1) • Normalized statutory earnings of $0.3 billion(
Slide 4: Net income available to shareholders; adjusted earnings; adjusted earnings, less notable items
Net income available to shareholders; adjusted earnings; adjusted earnings, less notable items For the Three Months Ended March 31, December 31, March 31, 2025 2024 2024 (1) ($ in millions, except per share) Total Per share Total Per share (1) Total Per share (1) Net income (loss) available to $(294
Slide 5: Annuities
Annuities Adjusted earnings, less notable items(1) Highlights ($ in millions) • Sales decreased 21% versus 1Q 2024 • On a quarter-over-quarter basis, results reflect: ◦ Higher net investment income ◦ Higher underwriting margin ◦ Partially offset by higher expenses and lower fees $324 $327 • On a seq
Slide 6: Life insurance
Life insurance Adjusted earnings, less notable items(1) Highlights ($ in millions) • Sales increased 24% versus 1Q 2024 • On a quarter-over-quarter basis, results reflect: $52 ◦ Lower underwriting margin ◦ Higher expenses • On a sequential basis, results reflect: ◦ Lower underwriting margin $37 ◦ Lo
Slide 7: Run-off and Corporate & Other
Run-off and Corporate & Other Run-off Adjusted earnings (loss), less notable items(1) Highlights ($ in millions) • On both a quarter-over-quarter basis and sequential basis, results reflect: ◦ Lower net investment income $(27) ◦ Partially offset by a higher underwriting ($48) margin $(64) 1Q25 4Q24
Slide 8: Statutory capital and liquidity position
Statutory capital and liquidity position Capital position as of March 31, 2025 • Estimated combined RBC ratio between 420% and 440%(1) 420%-440% • TAC of $5.5 billion(1) • Results reflect the benefit of an increase in the prescribed 20-year treasury yield mean reversion point from 3.75% to 4.00% Com
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) • $124B in total investments (TI) Policy Loans Equity Securities 1% 0% Short-Term Investments 1% • $87B in fixed maturity securities (FMS) Trading Securities Other Invested Assets 0% ◦ 97%
Slide 11: High-quality commercial mortgage loan portfolio
High-quality commercial mortgage loan portfolio Property Type Diversification Key highlights (1) Hotel 7% • $13.1B, 11% of TI, solid credit metrics ◦ 68% loan-to-value (LTV), 2.3x debt service Retail 13% coverage ratio (DSCR) overall Apartment ◦ Annual revaluations completed in 2024 38% ◦ 78% of por
Slide 12: Non-GAAP and Other Financial Disclosures
Non-GAAP and Other Financial Disclosures Our definitions of non-GAAP and other financial measures may differ from those used by other companies. Non-GAAP Financial Disclosures We present certain measures of our performance that are not calculated in accordance with GAAP. We believe that these non-GA
Slide 13: Non-GAAP and Other Financial Disclosures (Cont.)
Non-GAAP and Other Financial Disclosures (Cont.) Adjusted earnings reflect adjusted revenues less (i) adjusted expenses, (ii) provision for income tax expense (benefit), (iii) net income (loss) attributable to noncontrolling interests and (iv) preferred stock dividends. Provided below are the adjust
Slide 14: Non-GAAP and Other Financial Disclosures (Cont.)
Non-GAAP and Other Financial Disclosures (Cont.) Adjusted Net Investment Income Yield Similar to adjusted net investment income, adjusted net investment income yield is used by management as a performance measure that we believe enhances the understanding of our investment portfolio results. Adjuste
Slide 15: Non-GAAP and Other Financial Disclosures (Cont.)
Non-GAAP and Other Financial Disclosures (Cont.) Other Financial Disclosures (cont.) Holding Company Liquid Assets Holding company liquid assets include liquid assets in Brighthouse Financial, Inc., Brighthouse Holdings, LLC, and Brighthouse Services, LLC. Liquid assets are comprised of cash and cas
Slide 16: Adjusted earnings (loss) by segment, less notable items
Adjusted earnings (loss) by segment, less notable items For the Three Months Ended March 31, December 31, March 31, ($ in millions, post-tax) 2025 2024 2024 Annuities $314 $279 $313 Life $9 $52 $(36) Run-off $(64) $(27) $(341) Corporate & Other $(24) $— $(34) Adjusted earnings (loss)(1) $235 $304 $(
Slide 17: Reconciliation of net income (loss) available to shareholders to adjusted earnings, less notable items
Reconciliation of net income (loss) available to shareholders to adjusted earnings, less notable items, and net income (loss) available to shareholders per common share to adjusted earnings, less notable items, per common share For the Three Months Ended March 31, December 31, March 31, ($ in millio