Brighthouse Financial, Inc. · NASDAQ:BHF
Brighthouse Financial — Corporate Update (March 2021)
7 slides from Brighthouse Financial's corporate update, Mar 16, 2021
Slide 1: Brighthouse Financial Projected Distributable Earnings Scenarios
Brighthouse Financial Projected Distributable Earnings Scenarios March 16, 2021 Note: All references to “distributable earnings” within this document are projected. Actual results may differ. See “Note regarding forward-looking statements” on slide 2 for additional information. Exhibit 99.1
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 contains information that includes or is based upon forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-look
Slide 3: Key takeaways
Key takeaways 3 • Significant level of long-term total company distributable earnings, despite low interest rate environment • Variable annuity (VA) distributable earnings modestly lower than scenarios published on March 5, 2020, adjusted for the $1 billion VA capital release in 2020 related to the
Slide 4: VA distributable earnings
VA distributable earnings Base Case Upside Lower SA Return Lower SA Return/Rates Equity & Rate Shock Assumptions as of December 31, 2020 Separate Account (SA) Return 6.5% 9.0% 4.0% 4.0% (25)% shock to equities, then 6.5% SA return 10-year U.S. Treasury Mean reversion to 3.0% by 2030 Mean reversion t
Slide 5: Distributable earnings across most scenarios despite the low interest rate environment
Distributable earnings across most scenarios despite the low interest rate environment 5 Scenario VA DE, 2021 – 2025 Published March 16, 2021 VA DE, 2020 – 2024(1) Published March 5, 2020 Base Case 2.3 2.6 Upside 3.0 3.3 Lower SA Return 1.3 1.7 Lower SA Return/Rates 0.5 0.5 Equity & Rate Shock 0.0 0
Slide 6: Potential for incremental distributable earnings given recent rise in interest rates
$1.3 $0.5 Potential for incremental distributable earnings given recent rise in interest rates $ in billions 6 VA distributable earnings(1), cumulative 2021 – 2025 Lower SA Return/ Rates Lower SA Return Note: The relationship between the change in distributable earnings for every basis point change
Slide 7: Significant long-term total company distributable earnings
Significant long-term total company distributable earnings 7 Total company distributable earnings(1), cumulative 2021 - 2030 $ in billions VA Non-VA & new business Base Case Lower SA Return/Rates ~35% ~65% ~65% ~35% $8 – $10 $3.5 – $4.5 Significant distributable earnings even in persistent low retur
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