Brighthouse Financial, Inc. · NASDAQ:BHF
Brighthouse Financial — Q1 2023 Earnings Presentation
19 slides from Brighthouse Financial's earnings presentation, May 9, 2023
Slide 1: Brighthouse Financial, Inc. First Quarter 2023 Earnings Call Presentation
Brighthouse Financial, Inc. First Quarter 2023 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 460% and 480%; holding company liquid assets of $1.1 billion • Statutory combined total adjusted capital (TAC)(1) of $8.2 billion • Normalized statutory earnings(1) of $0.2 billion • Adjust
Slide 4: Net income (loss) available to shareholders; adjusted earnings; adjusted earnings, less notable items
Net income (loss) available to shareholders; adjusted earnings; adjusted earnings, less notable items For the Three Months Ended March 31, December 31, March 31, 2023 2022 2022 ($ 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) • 35% increase in sales versus 1Q 2022 • On a quarter-over-quarter basis, results reflect: ◦ Lower fees and higher interest credited ◦ Partially offset by higher net investment income $354 • Sequential results reflect: $31
Slide 6: Life insurance
Life insurance Adjusted earnings, less notable items(1) Highlights ($ in millions) • 15% increase in sales versus 1Q 2022 • On a quarter-over-quarter basis, results reflect: ◦ Lower net investment income and a lower $85 underwriting margin • On a sequential basis, results reflect: ◦ Lower underwriti
Slide 7: Run-off segment and Corporate & Other
Run-off segment and Corporate & Other Run-off Adjusted earnings, less notable items(1) Highlights ($ in millions) • On a quarter-over-quarter basis, results reflect: ◦ Lower net investment income and a lower underwriting margin $24 ◦ Partially offset by lower expenses • On a sequential basis, result
Slide 8: Robust capital and liquidity position
Robust capital and liquidity position Capital position as of March 31, 2023 • Estimated combined RBC ratio(1) between 460% and 480% • TAC(1) increased to $8.2 billion Common stock repurchases Holding company liquid assets ($ in millions) ($ in billions) $1.1 $1.1 $1.2 $136 $132 $1.0 $93 $62 1Q23 4Q2
Slide 9: Well-diversified, high-quality investment portfolio
Well-diversified, high-quality investment portfolio Portfolio composition by asset class(1) Key highlights (1) • ~$118B in total investments (TI) Short-Term Investments 1% Limited Partnerships & LLCs • ~$85B in fixed maturity securities (FMS) 4% Equity Securities Foreign Government 1% ◦ 96% Investme
Slide 10: Diversified commercial mortgage loan portfolio
Diversified commercial mortgage loan portfolio Commercial Mortgage Loan (CML) Portfolio Debt Book % of Service Sector Value Book LTV (%) Coverage $ in millions Value Ratio • High quality portfolio, with solid credit metrics (DSCR) including low loan-to-values (LTV) Apartment 5,425 40.1% 58% 2.02 Off
Slide 11: Favorable CML maturity profile
Favorable CML maturity profile Total Commercial Mortgage Loan Portfolio Book Value % Book Year $ in millions Value LTV DSCR 2023 493 4% 58% 2.24 • Total CML portfolio has 9% of maturities in 2024 729 5% 56% 2.22 next 2 years 2023 to 2024 $1,222 9% 57% 2.23 • Office portfolio has 12% of maturities in
Slide 12: Highly-rated, well-enhanced CMBS portfolio
Highly-rated, well-enhanced CMBS portfolio Total CMBS Portfolio Book Value % of Book Credit • 98.4% of CMBS holdings designated Rating $ in millions Value Enhancement NAIC-1; only $15M below NAIC-2 AAA 5,156 70% 34% • Weighted average credit enhancement of AA 1,305 18% 27% 32% A 461 6% 28% BBB 396 6
Slide 13: Appendix
Appendix 13
Slide 14: Non-GAAP and Other Financial Disclosures
Non-GAAP and Other Financial Disclosures Our definitions of non-GAAP and other financial measures may differ from those used by other companies. Non-GAAP Financial Disclosures We present certain measures of our performance that are not calculated in accordance with GAAP. We believe that these non-GA
Slide 15: Non-GAAP and Other Financial Disclosures (Cont.)
Non-GAAP and Other Financial Disclosures (Cont.) Adjusted earnings reflects adjusted revenues less (i) adjusted expenses, (ii) provision for income tax expense (benefit), (iii) net income (loss) attributable to noncontrolling interests and (iv) preferred stock dividends. Provided below are the adjus
Slide 16: Non-GAAP and Other Financial Disclosures (Cont.)
Non-GAAP and Other Financial Disclosures (Cont.) Other Financial Disclosures Corporate Expenses Corporate expenses includes functional department expenses, public company expenses, certain investment expenses, retirement funding and incentive compensation; and excludes establishment costs. Notable i
Slide 17: Non-GAAP and Other Financial Disclosures (Cont.)
Non-GAAP and Other Financial Disclosures (Cont.) Other Financial Disclosures (cont.) Sales Life insurance sales consist of 100 percent of annualized new premium for term life, first-year paid premium for whole life, universal life, and variable universal life, and total paid premium for indexed univ
Slide 18: Adjusted earnings by segment and Corporate & Other, less notable items
Adjusted earnings by segment and Corporate & Other, less notable items For the Three Months Ended March 31, December 31, March 31, ($ in millions, post-tax) 2023 2022 2022 Annuities $314 $194 $354 Life $1 $17 $66 Run-off $(106) $236 $24 Corporate & Other $(14) $98 $(64) Adjusted earnings(1) $195 $54
Slide 19: Reconciliation of net income (loss) available to shareholders to adjusted earnings, less notable items
Reconciliation of net income (loss) available to shareholders to adjusted earnings, less notable items and net income (loss) available to shareholders per common share to adjusted earnings, less notable items per common share For the Three Months Ended March 31, December 31, March 31, ($ in millions
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