Brighthouse Financial, Inc. · NASDAQ:BHF
Brighthouse Financial — Q3 2024 Earnings Presentation
17 slides from Brighthouse Financial's earnings presentation, Nov 8, 2024
Slide 1: Third Quarter 2024 Earnings Call Presentation
Brighthouse Financial, Inc. Third Quarter 2024 Earnings Call Presentation (As updated November 8, 2024)
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 3Q 2024 Financial results and drivers • Estimated combined risk-based capital (RBC) ratio(1) between 400% and 420%; reflects entry into reinsurance transaction with a third party • Holding company liquid assets of $1.3 billion • Statutory combined total adjusted capital (TAC)(1) of
Slide 4: Net income available to shareholders; adjusted earnings; adjusted earnings, less notable items
Net income available to shareholders; adjusted earnings; adjusted earnings, less notable items For the Three Months Ended September 30, June 30, September 30, 2024 2024 2023 (1) ($ in millions, except per share) Total Per share Total Per share (1) Total Per share (1) Net income (loss) available to $
Slide 5: Annuities
Annuities Adjusted earnings, less notable items(1) Highlights ($ in millions) • Sales decreased 3% versus 3Q 2023 • On a quarter-over-quarter basis, results reflect: ◦ Higher fees • On a sequential basis, results reflect: ◦ Lower fees $332 $307 $291 Key metrics For the Three Months Ended September 3
Slide 6: Life insurance
Life insurance Adjusted earnings (loss), less notable items(1) Highlights ($ in millions) • 20% increase in sales versus 3Q 2023 • On a quarter-over-quarter basis, results reflect: $41 $42 ◦ Higher underwriting margin • On a sequential basis, results reflect: ◦ Lower net investment income ◦ Mostly o
Slide 7: Run-off segment and Corporate & Other
Run-off segment and Corporate & Other Run-off Adjusted earnings (loss), less notable items(1) Highlights ($ in millions) • On a quarter-over-quarter basis, results reflect: ◦ Lower underwriting margin $1 • On a sequential basis, results reflect: ◦ Lower net investment income $(30) ◦ Lower underwriti
Slide 8: Statutory capital and liquidity position
Statutory capital and liquidity position Capital position as of September 30, 2024 • Estimated combined RBC ratio(1) between 400% and 420%; reflects entry into reinsurance transaction with a third party • TAC(1) increased to $5.7 billion Common stock repurchases Holding company liquid assets ($ in m
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) • ~$123B in total investments (TI) Policy Loans 1% Short-Term Investments 1% • ~$88B in fixed maturity securities (FMS) Equity Securities Other Invested Assets 0% ◦ 97% Investment grade (65
Slide 11: High-quality commercial mortgage loan portfolio
High-quality commercial mortgage loan portfolio Property Type Diversification Key highlights (1) Hotel 6% • $13.3B, 11% of TI, solid credit metrics Retail ◦ 68% loan-to-value (LTV), 2.3x debt service 13% coverage ratio (DSCR) overall ◦ Substantially all loans revalued in 2023 Apartment 40% ◦ Over 82
Slide 12: Non-GAAP and Other Financial Disclosures
Non-GAAP and Other Financial Disclosures Our definitions of non-GAAP and other financial measures may differ from those used by other companies. Non-GAAP Financial Disclosures We present certain measures of our performance that are not calculated in accordance with GAAP. We believe that these non-GA
Slide 13: Non-GAAP and Other Financial Disclosures (Cont.)
Non-GAAP and Other Financial Disclosures (Cont.) Adjusted earnings reflects adjusted revenues less (i) adjusted expenses, (ii) provision for income tax expense (benefit), (iii) net income (loss) attributable to noncontrolling interests and (iv) preferred stock dividends. Provided below are the adjus
Slide 14: Non-GAAP and Other Financial Disclosures (Cont.)
Non-GAAP and Other Financial Disclosures (Cont.) Adjusted Net Investment Income Yield Similar to adjusted net investment income, adjusted net investment income yield is used by management as a performance measure that we believe enhances the understanding of our investment portfolio results. Adjuste
Slide 15: Non-GAAP and Other Financial Disclosures (Cont.)
Non-GAAP and Other Financial Disclosures (Cont.) Other Financial Disclosures (cont.) Holding Company Liquid Assets Holding company liquid assets include liquid assets in Brighthouse Financial, Inc., Brighthouse Holdings, LLC, and Brighthouse Services, LLC. Liquid assets are comprised of cash and cas
Slide 16: Adjusted earnings by segment and Corporate & Other, less notable items
Adjusted earnings by segment and Corporate & Other, less notable items For the Three Months Ended September 30, June 30, September 30, ($ in millions, post-tax) 2024 2024 2023 Annuities $327 $332 $319 Life $(25) $42 $(73) Run-off $463 $(30) $95 Corporate & Other $2 $2 $(15) Adjusted earnings (loss)(
Slide 17: Reconciliation of net income (loss) available to shareholders to adjusted earnings, less notable items
Reconciliation of net income (loss) available to shareholders to adjusted earnings, less notable items, and net income (loss) available to shareholders per common share to adjusted earnings, less notable items per common share For the Three Months Ended September 30, June 30, September 30, ($ in mil
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