Brighthouse Financial Announces Third Quarter 2025 Results

• Announced entry into a definitive merger agreement earlier today under which an affiliate of Aquarian Capital LLC (“Aquarian Capital”) will acquire Brighthouse Financial for $70.00 per share in an all-cash transaction valued at approximately $4.1 billion
• Estimated combined risk-based capital (“RBC”) ratio between 435% and 455%; holding company liquid assets of $1.0 billion
• Annuity sales of $2.7 billion, primarily driven by record sales of Shield Level Annuities
• Life sales of $38 million, primarily driven by sales of Brighthouse SmartCare
• Net income available to shareholders of $453 million, or $7.89 per diluted share
• Adjusted earnings, less notable items*, of $261 million, or $4.54 per diluted share

CHARLOTTE, N.C.–(BUSINESS WIRE)–Brighthouse Financial, Inc. (“Brighthouse Financial” or the “company”) (Nasdaq: BHF) announced today its financial results for the third quarter ended September 30, 2025.

Third Quarter 2025 Results

The company reported net income available to shareholders of $453 million in the third quarter of 2025, or $7.89 per diluted share, compared with net income available to shareholders of $150 million in the third quarter of 2024, or $2.47 per diluted share. The company anticipates volatility in net income (loss) given the differences between its hedge target and GAAP reserves, which are impacted by market performance.

In the third quarter of 2025, the company completed its GAAP annual actuarial review where it reviews its long-term assumptions. This resulted in a net favorable impact to net income available to shareholders of $316 million. As part of this review, the company increased its long-term mean reversion interest rate assumption for the 10-year U.S. Treasury from 4.00% to 4.50% and updated its policyholder behavior assumptions.

The company ended the third quarter of 2025 with common stockholders’ equity (“book value”) of $4.7 billion, or $81.60 per common share, and book value, excluding accumulated other comprehensive income (“AOCI”) of $8.7 billion, or $151.94 per common share.

For the third quarter of 2025, the company reported adjusted earnings* of $970 million, or $16.87 per diluted share, compared with adjusted earnings of $767 million, or $12.58 per diluted share, for the third quarter of 2024.

Adjusted earnings for the quarter reflect $709 million of net favorable notable items, or $12.33 per diluted share, related to the annual actuarial review and other insurance adjustments.

Corporate expenses in the quarter were $205 million, up from $203 million in the third quarter of 2024 and up from $202 million in the second quarter of 2025, all on a pre-tax basis.

The company’s annuity sales increased 8% quarter-over-quarter and 5% sequentially, driven by record sales of Shield Level Annuities and higher sales of fixed annuities. While third quarter year-to-date total annuity sales decreased 3%, sales of Shield Level Annuities were up 3% compared with the same period in 2024. Life sales increased 27% quarter-over-quarter, 15% sequentially and 23% year-to-date through the third quarter compared with same period in 2024.

“Brighthouse Financial delivered solid results in the quarter as we continued to execute our strategy,” said Eric Steigerwalt, president and CEO, Brighthouse Financial. “In addition to producing strong sales, including achieving another record quarter for sales of our flagship Shield annuity products, we completed the separation of our legacy VA and first-generation Shield business, and ended the quarter with an estimated combined RBC ratio of 435% to 455%, at the upper end of our target range of 400% to 450% in normal market conditions.”

“We believe the transaction with Aquarian Capital that we announced today will deliver clear and compelling value to our stockholders, while positioning Brighthouse Financial to continue pursuing growth opportunities and advancing our mission of helping people achieve financial security,” Steigerwalt added.

Annuities

Adjusted earnings in the Annuities segment were $304 million in the current quarter, compared with adjusted earnings of $327 million in the third quarter of 2024 and adjusted earnings of $332 million in the second quarter of 2025.

The current quarter included a $7 million unfavorable notable item and the third quarter of 2024 included a $20 million favorable notable item, both related to the annual actuarial review and other insurance adjustments completed in the respective quarters. There were no notable items in the second quarter of 2025.

On a quarter-over-quarter basis, adjusted earnings, less notable items, reflect higher net investment income, partially offset by lower fees and a lower underwriting margin. On a sequential basis, adjusted earnings, less notable items, reflect lower fees and a lower underwriting margin, partially offset by higher net investment income.

As mentioned above, the company’s annuity sales increased 8% quarter-over-quarter and 5% sequentially, driven by record sales of Shield Level Annuities and higher sales of fixed annuities. While third quarter year-to-date total annuity sales decreased 3%, sales of Shield Level Annuities were up 3% compared with the same period in 2024.

Life

The Life segment had adjusted earnings of $40 million in the current quarter, compared with an adjusted loss of $25 million in the third quarter of 2024 and an adjusted loss of $26 million in the second quarter of 2025.

The current quarter included an $11 million favorable notable item and the third quarter of 2024 included a $66 million unfavorable notable item, both related to the annual actuarial review and other insurance adjustments completed in the respective quarters. There were no notable items in the second quarter of 2025.

On a quarter-over-quarter basis, adjusted earnings, less notable items, reflect higher expenses and a lower underwriting margin. On a sequential basis, adjusted earnings, less notable items, reflect a higher underwriting margin and higher net investment income, partially offset by higher expenses.

As mentioned above, the company’s life sales increased 27% quarter-over-quarter, 15% sequentially and 23% year-to-date through the third quarter compared with same period in 2024.

Run-off

The Run-off segment had adjusted earnings of $641 million in the current quarter, compared with adjusted earnings of $463 million in the third quarter of 2024 and an adjusted loss of $83 million in the second quarter of 2025.

The current quarter included a $705 million favorable notable item and the third quarter of 2024 included a $570 million favorable notable item, both related to the annual actuarial review and other insurance adjustments completed in the respective quarters. There were no notable items in the second quarter of 2025.

On a quarter-over-quarter basis, adjusted earnings, less notable items, reflect a higher underwriting margin, higher net investment income and lower expenses. On a sequential basis, adjusted earnings, less notable items, reflect a higher underwriting margin and higher net investment income, partially offset by higher expenses.

Corporate & Other

The Corporate & Other segment had an adjusted loss of $15 million in the current quarter, compared with adjusted earnings of $2 million in the third quarter of 2024 and an adjusted loss of $25 million in the second quarter of 2025.

There were no notable items in the current quarter or the comparison quarters.

On a quarter-over-quarter basis, the adjusted loss reflects lower net investment income and a lower tax benefit, partially offset by lower expenses. On a sequential basis, the adjusted loss reflects lower expenses and a higher tax benefit, partially offset by lower net investment income.

Net Investment Income

Net investment income was $1,334 million and adjusted net investment income* was $1,327 million in the current quarter.

Adjusted net investment income increased $33 million on a quarter-over-quarter basis and $35 million sequentially. The quarter-over-quarter and sequential increases were primarily driven by higher alternative investment income.

The adjusted net investment income yield* was 4.40% during the quarter.

Capitalization

As of September 30, 2025:

• Statutory combined total adjusted capital⁽¹⁾ was $5.4 billion
• Estimated combined RBC ratio⁽¹⁾ was between 435% and 455%, which is at the upper end of our target range of 400% to 450% in normal market conditions
• RBC ratio benefited from a reduction in risk charges associated with successful completion of separation of VA and first-generation Shield business, which included:
  • Product specific hedge targets, which are managed within tight risk tolerances
  • Opportunistic shift to a risk neutral framework
  • Continued optimization of asset-liability alignment within VA/Shield models
• Holding company liquid assets were $1.0 billion

2025 year-end expectation:

• Currently in process of conducting 2025 statutory annual actuarial review
  • Anticipate annual actuarial review will result in an increase to our statutory reserves
  • Expect to remain within our combined RBC ratio target range of 400% to 450% in normal market conditions at year-end of 2025, without contributing capital to our insurance subsidiaries

Earnings Conference Call Canceled

As previously announced, given the transaction with Aquarian Capital announced earlier today, the company will not be hosting a conference call and audio webcast to discuss its financial results for the third quarter ended September 30, 2025.

About Brighthouse Financial, Inc.

Brighthouse Financial, Inc. (Brighthouse Financial) (Nasdaq: BHF) is on a mission to help people achieve financial security. As one of the largest providers of annuities and life insurance in the U.S.,⁽¹⁾ we specialize in products designed to help people protect what they’ve earned and ensure it lasts. Learn more at brighthousefinancial.com.

Note Regarding Forward-Looking Statements

This press release, and any related oral statements, contain various forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are subject to the “safe harbor” created by those sections. Words such as “estimate,” “expect,” “project,” “may,” “will,” “could,” “intend,” “goal,” “target,” “guidance,” “forecast,” “preliminary,” “objective,” “continue,” “aim,” “plan,” “believe” and similar expressions or the negative of those expressions or verbs, identify forward-looking statements. Readers are cautioned that these statements are not guarantees of future performance. Forward-looking statements are not historical facts but instead represent only Brighthouse Financial’s beliefs regarding future events, which may by their nature be inherently uncertain, and some of which may be outside Brighthouse Financial’s control.

Such forward-looking statements are subject to risks, uncertainties and other important factors that could cause actual results and the timing of certain events to differ materially from future results expressed or implied by such forward-looking statements. Factors include, among others, differences between actual experience and actuarial assumptions and the effectiveness of Brighthouse Financial’s actuarial models; higher risk management costs and exposure to increased market risk due to guarantees within certain of Brighthouse Financial’s products; the effectiveness of Brighthouse Financial’s risk management strategy and the impacts of such strategy on volatility in Brighthouse Financial’s profitability measures and the negative effects on Brighthouse Financial’s statutory capital; material differences between actual outcomes and the sensitivities calculated under certain scenarios that Brighthouse Financial may utilize in connection with its risk management strategies; the impact of interest rates on Brighthouse Financial’s future ULSG policyholder obligations and net income volatility; the potential material adverse effect of changes in accounting standards, practices or policies applicable to Brighthouse Financial, including changes in the accounting for long-duration contracts; loss of business and other negative impacts resulting from a downgrade or a potential downgrade in Brighthouse Financial’s financial strength or credit ratings; the availability of reinsurance and the ability of the counterparties to Brighthouse Financial’s reinsurance or indemnification arrangements to perform their obligations thereunder; heightened competition, including with respect to service, product features, product mix, scale, price, actual or perceived financial strength, claims-paying ratings, credit ratings, e-business capabilities and name recognition; Brighthouse Financial’s ability to market and distribute its products through distribution channels and maintain relationships with key distribution partners; any failure of third parties to provide services Brighthouse Financial needs, any failure of the practices and procedures of such third parties and any inability to obtain information or assistance it needs from third parties; the ability of Brighthouse Financial’s subsidiaries to pay dividends to it, and its ability to pay dividends to its shareholders and repurchase its common stock; the risks associated with climate change; the adverse impact of public health crises, extreme mortality events or similar occurrences on Brighthouse Financial’s business and the economy in general; the impact of adverse capital and credit market conditions, including with respect to Brighthouse Financial’s ability to meet liquidity needs and access capital; the impact of economic conditions in the capital markets and the U.S. and global economy, as well as geopolitical events, tariffs imposed or threatened by the U.S. or foreign governments, military actions or catastrophic events, on Brighthouse Financial’s profitability measures as well as its investment portfolio, including on realized and unrealized losses and impairments, net investment spread and net investment income; the financial risks that Brighthouse Financial’s investment portfolio is subject to, including credit risk, interest rate risk, inflation risk, market valuation risk, liquidity risk, real estate risk, derivatives risk, and other factors outside Brighthouse Financial’s control; the impact of changes in regulation and in supervisory and enforcement policies or interpretations thereof on Brighthouse Financial’s insurance business or other operations; the potential material negative tax impact of potential future tax legislation that could make some of Brighthouse Financial’s products less attractive to consumers or increase our tax liability; the effectiveness of Brighthouse Financial’s policies, procedures and processes in managing risk; the loss or disclosure of confidential information, damage to Brighthouse Financial’s reputation and impairment of its ability to conduct business effectively as a result of any failure in cyber- or other information security systems; whether all or any portion of the tax consequences of Brighthouse Financial’s separation from MetLife, Inc. are not as expected, leading to material additional taxes or material adverse consequences to tax attributes that impact Brighthouse Financial; Brighthouse Financial’s ability to complete the merger on the timeframe or in the manner currently anticipated or at all, including due to a failure to obtain the regulatory approvals required for the closing of the merger or the occurrence of any event, change or other circumstance that could give rise to the right of one or both of the parties to terminate the merger agreement; the effect of the pendency of the merger on Brighthouse Financial’s ongoing business and operations, including disruption to Brighthouse Financial’s business relationships, the diversion of management’s attention from ongoing business operations and opportunities, or the outcome of any legal proceedings that may be instituted against Aquarian Capital or Brighthouse Financial following announcement of the merger; restrictions on the conduct of Brighthouse Financial’s business prior to the closing of the merger and on Brighthouse Financial’s ability to pursue alternatives to the merger; the possibility that the merger may be more expensive to complete than anticipated, including as a result of unexpected factors or events; other factors that may affect future results of Brighthouse Financial; and management’s response to any of the aforementioned factors.

Furthermore, such forward-looking statements speak only as of the date of this press release. Except as required by law, the parties undertake no obligation to update any forward-looking statements to reflect events or circumstances after the date of such statements. Risks or uncertainties (i) that are not currently known to the parties, (ii) that the parties currently deem to be immaterial or (iii) that could apply to any company could also materially adversely affect the future results of Brighthouse Financial. Additional information concerning certain factors is contained in Brighthouse Financial’s SEC filings, including but not limited to its most recent Annual Report on Form 10-K, as well as subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.

The information contained on or connected to any websites referenced in this press release is not incorporated by reference into this press release.

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 accounting principles generally accepted in the United States of America, also known as “GAAP.” We believe that these non-GAAP financial measures enhance the understanding of our performance by the investor community by highlighting the results of operations and the underlying profitability drivers of our business.

The following non-GAAP financial measures should not be viewed as substitutes for the most directly comparable financial measures calculated in accordance with GAAP:

Reconciliations to the most directly comparable historical GAAP measures are included for those measures which are presented herein. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are not accessible on a forward-looking basis because we believe it is not possible without unreasonable efforts to provide other than a range of net investment gains and losses and net derivative gains and losses, which can fluctuate significantly within or outside the range and from period to period and may have a material impact on net income (loss) available to shareholders.

Adjusted Earnings, Adjusted Revenues and Adjusted Expenses

Adjusted earnings is a financial measure used by management to evaluate performance and facilitate comparisons to industry results. This financial measure, which may be positive or negative, focuses on our primary businesses by excluding the impact of market volatility, which could distort trends.

Contacts

FOR INVESTORS
Dana Amante

(980) 949-3073

[email protected]

FOR MEDIA
Meghan Lantier

(980) 949-4142

[email protected]

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