Brighthouse Financial, Inc. · NASDAQ:BHF
Brighthouse Financial — Q3 2019 Earnings Presentation
15 slides from Brighthouse Financial's earnings presentation, 2019
Slide 1: Third Quarter 2019 Earnings Call Presentation
Brighthouse Financial, Inc. Third 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 17% compared with 3Q 2018 Executing our • Network of over 56k advisors for SmartCare and expanding over time strategy • Exited 163 transition services agreements ("TSAs") since separation; 56 TSAs remaining • 3Q 2019 adjusted earnings per share (EPS), less notabl
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 September 30, June 30, September 30, 2019 2019 2018 Total Per share (1) Total Per share (1) Total Per share (1) ($ in millions, except per share) Net income (loss) availabl
Slide 5: Annuities
Annuities Adjusted earnings, less notable items(1) Highlights ($ in millions) • 17% growth in sales versus 3Q 2018 • Compared with 3Q 2018, results reflect: ◦ Unfavorable market impacts, higher expenses and higher taxes ◦ Partially offset by higher net investment $265 income $247 $233 • Sequential r
Slide 6: Life insurance
Life insurance Adjusted earnings, less notable items(1) Highlights ($ in millions) • Compared with 3Q 2018, results reflect: ◦ Lower expenses ◦ Partially offset by higher claims • Sequential results reflect: $58 $54 ◦ Higher expenses $50 Key metrics For the Three Months Ended September 30, June 30,
Slide 7: Run-off segment and Corporate & Other
Run-off segment and Corporate & Other Run-off Adjusted earnings, less notable items(1) Highlights ($ in millions) • Compared with 3Q 2018, results reflect: $35 ◦ Higher claims ◦ Partially offset by lower taxes • Sequential results reflect: $14 ◦ Lower net investment income and higher reserves $5 ◦ P
Slide 8: Robust capital & liquidity position
Robust capital & liquidity position Capital position as of September 30, 2019 • Statutory combined total adjusted capital(1) increased to $8.4 billion • Variable annuity assets remained at ~$1.5 billion above the CTE98 level(2) • Average financial leverage ratio was 23.2% Common stock repurchases Ho
Slide 9: Appendix
Appendix
Slide 10: Non-GAAP and Other Financial Disclosures
Non-GAAP and Other Financial Disclosures Our definitions of the non-GAAP and other financial measures may differ from those used by other companies. Non-GAAP Financial Disclosures We present certain measures of our performance that are not calculated in accordance with GAAP. We believe that these no
Slide 11: Non-GAAP and Other Financial Disclosures (Cont.)
Non-GAAP and Other Financial Disclosures (Cont.) Adjusted earnings reflects adjusted revenues less adjusted expenses, both net of income tax, and excludes net income (loss) attributable to noncontrolling interests and preferred stock dividends. Provided below are the adjustments to GAAP revenues and
Slide 12: Non-GAAP and Other Financial Disclosures (Cont.)
Non-GAAP and Other Financial Disclosures (Cont.) Adjusted Net Investment Income We present adjusted net investment income to measure our performance for management purposes, and we believe it enhances the understanding of our investment portfolio results. Adjusted net investment income represents ne
Slide 13: Non-GAAP and Other Financial Disclosures (Cont.)
Non-GAAP and Other Financial Disclosures (Cont.) Other Financial Disclosures (cont.) Sales Statistical sales information for life sales is calculated using the LIMRA definition of sales for core direct sales, excluding company-sponsored internal exchanges, corporate-owned life insurance, bank-owned
Slide 14: Adjusted earnings by segment and Corporate & Other, less notable items
Adjusted earnings by segment and Corporate & Other, less notable items For the Three Months Ended ($ in millions, post-tax) September 30, 2019 June 30, 2019 September 30, 2018 Annuities $203 $265 $401 Life $73 $58 $61 Run-off ($426) $2 ($105) Corporate & Other ($19) ($71) ($87) Adjusted earnings(1)
Slide 15: Reconciliation of net income (loss) available to shareholders to adjusted earnings
Reconciliation of net income (loss) available to shareholders to adjusted earnings and net income (loss) available to shareholders per common share to adjusted earnings per common share For the Three Months Ended ($ in millions, except per share) September 30, 2019 June 30, 2019 September 30, 2018 N
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