Brighthouse Financial, Inc. · NASDAQ:BHF
Brighthouse Financial — Q2 2018 Earnings Presentation
14 slides from Brighthouse Financial's earnings presentation, Aug 6, 2018
Slide 1: Second Quarter 2018 Earnings Call Presentation
August 6, 2018 Brighthouse Financial, Inc. Second Quarter 2018 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: Financial highlights
Financial highlights • Announced $200 million stock repurchase program • Reaffirmed 2018 guidance: adjusted earnings per diluted share1 of $8.50 to $9.00 and adjusted return on equity1 of approximately 8 percent for 2018 (both less notable items) • $2.7 billion of variable annuity (VA) assets above
Slide 4: Regulatory reform update
Regulatory reform update NAIC VA Capital Reform • Currently expect framework to be approved on August 7, 2018 • Following approval of framework: Various NAIC committees to clarify implementation guidance • Expected to be effective January 1, 2020 Potential outcomes • CTE98 + >$0.5B assets as of 2Q 2
Slide 5: Net income (loss) available to shareholders and adjusted earnings
Net income (loss) available to shareholders and adjusted earnings For the Three Months Ended June 30, 2018 March 31, 2018 June 30, 2017 $ millions per share $ millions per share $ millions per share Net income (loss), available to shareholders ($239) ($2.01) ($67) ($0.56) $246 N/A Adjusted earnings
Slide 6: 2Q 2018 adjusted earnings per share drivers
2Q 2018 adjusted earnings per share drivers For the Three Months Ended June 30, 2018 2Q 2018 adjusted EPS, less notable items $1.64 Adjusted earnings drivers (estimated impacts) Higher corporate expenses vs. expected run-rate in first twelve months post separation ($0.17) Lower alternative investmen
Slide 7: Statutory hedge effectiveness
Statutory hedge effectiveness Assets above CTE95 flat sequentially; More than $0.5B of assets above CTE98 Assets above CTE95 ($ in billions) +$0.1 ~$2.7 - ~$2.7 ~$2.6 +$0.3 ~$2.3 Increase (decrease) to: 3Q 2017 4Q 2017 1Q 2018 2Q 2018 Total VA assets ($0.2) ($0.3) $0.1 ($0.1) Hedge target (CTE95) ($
Slide 8: Appendix
Appendix
Slide 9: 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 10: 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. Provided below are the adjustments to GAAP revenues and GAAP expenses used to calcula
Slide 11: 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 12: 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 13: 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, 2018 March 31, 2018 June 30, 2017 Annuities $221 $226 $226 Life 37 66 12 Run-off (6) 50 52 Corporate & Other (99) (59) 34 Adjusted earnings1 $153 $283 $324 Notable ite
Slide 14: Reconciliation of net income (loss) to adjusted earnings and per share
Reconciliation of net income (loss) to adjusted earnings and net income (loss) per share to adjusted earnings per share For the Three Months Ended ($ in millions, except per share) June 30, 2018 March 31, 2018 June 30, 2017 Net income (loss) available to shareholders ($239) ($67) $246 Less: Net inve
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