Slide 1: Second Quarter 2019 Earnings Call Presentation
Brighthouse Financial, Inc. Second Quarter 2019 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 • Annuity sales up 34% compared to 2Q 2018 Executing on our • Continued roll-out of SmartCareSM to major distribution partners strategy • Investment portfolio repositioning completed • 2Q 2019 adjusted earnings per share (EPS), less notable items(2)(3) of $2.56 • ~$100 million sequ
Slide 4: Net income (loss) available to shareholders; adjusted earnings; adjusted earnings less notable items
Net income (loss) available to shareholders; adjusted earnings; adjusted earnings less notable items For the Three Months Ended June 30, 2019 March 31, 2019 June 30, 2018 Total Per share (1) Total Per share (1) Total Per share (1) ($ in millions, except per share) Net income (loss) available to $377
Slide 5: Annuities
Annuities Adjusted earnings, less notable items(1) Highlights ($ in millions) • 34% growth in sales versus 2Q 2018 • Compared to 2Q 2018, results reflect: ◦ Higher net investment income and lower expenses $295 ◦ Partially offset by lower fees $265 • Sequential results reflect: ◦ Higher DAC amortizat
Slide 6: Life insurance
Life insurance Adjusted earnings, less notable items(1) Highlights ($ in millions) • Compared to 2Q 2018, results reflect: ◦ Lower expenses ◦ Partially offset by lower fees • Sequential results reflect: $58 ◦ Higher net investment income and lower claims ◦ Partially offset by higher DAC amortization
Slide 7: Run-off segment and Corporate & Other
Run-off segment and Corporate & Other Run-off Adjusted earnings, less notable items(1) Highlights ($ in millions) • Compared to 2Q 2018, results reflect: ◦ Higher net investment income and lower $14 expenses ◦ Partially offset by higher claims ($6) • Sequential results reflect: ◦ Higher net investme
Slide 8: Robust capital & liquidity position
Robust capital & liquidity position Capital position(1) • Statutory combined total adjusted capital(2) increased to $6.9 billion • Variable annuity assets were ~$1.5 billion above the CTE98 level(3) • Average financial leverage ratio was 24% Common stock repurchases Holding company liquidity ($ in m
Slide 9: Appendix
Appendix
Slide 10: Non-GAAP and Other Financial Disclosures
Non-GAAP and Other Financial Disclosures Our definitions of the 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 no
Slide 11: Non-GAAP and Other Financial Disclosures (Cont.)
Non-GAAP and Other Financial Disclosures (Cont.) Adjusted earnings reflects adjusted revenues less adjusted expenses, both net of income tax, and excludes net income (loss) attributable to noncontrolling interests and preferred stock dividends. Provided below are the adjustments to GAAP revenues and
Slide 12: Non-GAAP and Other Financial Disclosures (Cont.)
Non-GAAP and Other Financial Disclosures (Cont.) Other Financial Disclosures Corporate Expenses Corporate expenses includes functional department expenses, public company expenses, certain investment expenses, retirement funding and incentive compensation; and excludes establishment costs. Notable i
Slide 13: Non-GAAP and Other Financial Disclosures (Cont.)
Non-GAAP and Other Financial Disclosures (Cont.) Other Financial Disclosures (cont.) Sales Statistical sales information for life sales is calculated using the LIMRA definition of sales for core direct sales, excluding company-sponsored internal exchanges, corporate-owned life insurance, bank-owned
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 ($ in millions, post-tax) June 30, 2019 March 31, 2019 June 30, 2018 Annuities $265 $295 $221 Life $58 $25 $37 Run-off $2 ($36) ($6) Corporate & Other ($71) ($52) ($99) Adjusted earnings(1) $254 $232 $1
Slide 15: Reconciliation of net income (loss) available to shareholders to adjusted earnings
Reconciliation of net income (loss) available to shareholders to adjusted earnings and net income (loss) available to shareholders per common share to adjusted earnings per common share For the Three Months Ended ($ in millions, except per share) June 30, 2019 March 31, 2019 June 30, 2018 Net income