BHF 8-K
Brighthouse Financial, Inc. (BHF)
8-K
2026-05-06
For: 2026-05-06
View Original
Added on
May 06, 2026
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 6, 2026
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||
(Address of principal executive offices) | (Zip Code) | ||||||||||||||||
Registrant’s telephone number, including area code: (980 ) 365-7100
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading symbol(s) | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company | |||||||||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. | ☐ | ||||||||||
Item 2.02. Results of Operations and Financial Condition.
On May 6, 2026, Brighthouse Financial, Inc. (“Brighthouse Financial” or the “Company”) issued (i) a news release announcing its results for the quarter ended March 31, 2026, a copy of which is attached hereto as Exhibit 99.1 and is incorporated herein by reference, and (ii) a Financial Supplement for the quarter ended March 31, 2026, a copy of which is attached hereto as Exhibit 99.2 and is incorporated herein by reference.
In accordance with General Instruction B.2 of Form 8-K, the information in Item 2.02 and Exhibits 99.1 and 99.2 listed in Item 9.01 of this Current Report on Form 8-K shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits
| Exhibit No. | Description | ||||
| 104* | Cover Page Interactive Data File (embedded within the Inline XBRL document) | ||||
* Filed herewith.
** Furnished herewith.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| BRIGHTHOUSE FINANCIAL, INC. | |||||||||||
| By: | /s/ Melissa B. Pavlovich | ||||||||||
| Name: | Melissa B. Pavlovich | ||||||||||
| Title: | Chief Accounting Officer | ||||||||||
Date: May 6, 2026
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Exhibit 99.1
FOR IMMEDIATE RELEASE
Brighthouse Financial Announces First Quarter 2026 Results
•Estimated combined risk-based capital ("RBC") ratio between 430% and 450%; holding company liquid assets of $0.9 billion
•Annuity sales of $2.2 billion, primarily driven by $1.9 billion in sales of Shield Level Annuities
•Life sales of $32 million, primarily driven by sales of Brighthouse SmartCare
•Net loss available to shareholders of $792 million, or $13.82 per diluted share
•Adjusted earnings, less notable items*, of $251 million, or $4.35 per diluted share
CHARLOTTE, NC, May 6, 2026 — Brighthouse Financial, Inc. ("Brighthouse Financial" or the "company") (Nasdaq: BHF) announced today its financial results for the first quarter ended March 31, 2026.
First Quarter 2026 Results
The company reported a net loss available to shareholders of $792 million in the first quarter of 2026, or $13.82 per diluted share, compared with a net loss available to shareholders of $294 million in the first quarter of 2025, or $5.04 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.
The company ended the first quarter of 2026 with common stockholders' equity ("book value") of $3.9 billion, or $67.27 per common share, and book value, excluding accumulated other comprehensive income ("AOCI") of $8.0 billion, or $139.63 per common share.
For the first quarter of 2026, the company reported adjusted earnings* of $239 million, or $4.15 per diluted share, compared with adjusted earnings of $235 million, or $4.01 per diluted share, for the first quarter of 2025.
Adjusted earnings for the quarter reflect a $12 million unfavorable notable item, or $0.21 per diluted share, related to actuarial refinements.
_________
* Information regarding the non-GAAP and other financial measures included in this news release and a reconciliation of such non-GAAP financial measures to the most directly comparable GAAP measures are provided in the Non-GAAP and Other Financial Disclosures discussion below, as well as in the tables that accompany this news release and/or the First Quarter 2026 Brighthouse Financial, Inc. Financial Supplement (which is available on the Brighthouse Financial Investor Relations webpage at http://investor.brighthousefinancial.com). Additional information regarding notable items can be found on the last page of this news release.
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Corporate expenses in the first quarter of 2026 were $227 million, down from $239 million in the first quarter of 2025 and $234 million in the fourth quarter of 2025, all on a pre-tax basis. Beginning in 2026, certain costs incurred in connection with the previously announced pending acquisition of the company are not categorized as corporate expenses. Excluding these transaction-related costs in the prior periods, corporate expenses decreased $7 million quarter-over-quarter and increased $8 million sequentially.
In the first quarter of 2026, the company reported annuity sales of $2.2 billion, reflecting a decrease of 4% quarter-over-quarter and 20% sequentially. Life sales for the quarter totaled $32 million, representing an 11% decrease both quarter-over-quarter and sequentially.
Key Metrics (Unaudited, dollars in millions except share and per share amounts)
| As of or For the Three Months Ended | ||||||||||||||||||||||||||
| March 31, 2026 | March 31, 2025 | |||||||||||||||||||||||||
| Total | Per share | Total | Per share | |||||||||||||||||||||||
Net income (loss) available to shareholders (1) | $(792) | $(13.82) | $(294) | $(5.04) | ||||||||||||||||||||||
Adjusted earnings (1) | $239 | $4.15 | $235 | $4.01 | ||||||||||||||||||||||
Adjusted earnings, less notable items (1) | $251 | $4.35 | $245 | $4.17 | ||||||||||||||||||||||
Weighted average common shares outstanding - diluted (1) | 57,735,327 | N/A | 58,697,818 | N/A | ||||||||||||||||||||||
| Book value | $3,864 | $67.27 | $3,540 | $61.17 | ||||||||||||||||||||||
| Book value, excluding AOCI | $8,020 | $139.63 | $8,210 | $141.87 | ||||||||||||||||||||||
| Ending common shares outstanding | 57,437,709 | N/A | 57,868,389 | N/A | ||||||||||||||||||||||
(1) Per share amounts are on a diluted basis and may not recalculate due to rounding. See Non-GAAP and Other Financial Disclosures discussion in this news release. | ||||||||||||||||||||||||||
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Results by Segment (Unaudited, in millions)
| For the Three Months Ended | ||||||||||||||||||||
ADJUSTED EARNINGS (LOSS) (1) | March 31, 2026 | December 31, 2025 | March 31, 2025 | |||||||||||||||||
| Annuities | $324 | $304 | $314 | |||||||||||||||||
Life | $(6) | $18 | $9 | |||||||||||||||||
Run-off | $(48) | $(58) | $(64) | |||||||||||||||||
Corporate & Other | $(31) | $(50) | $(24) | |||||||||||||||||
| (1) The company uses the term "adjusted loss" throughout this news release to refer to negative adjusted earnings values. | ||||||||||||||||||||
Sales (Unaudited, in millions)
| For the Three Months Ended | ||||||||||||||||||||
| March 31, 2026 | December 31, 2025 | March 31, 2025 | ||||||||||||||||||
| Annuities (1) | $2,178 | $2,734 | $2,259 | |||||||||||||||||
| Life | $32 | $36 | $36 | |||||||||||||||||
| (1) Annuities sales include sales of a fixed index annuity product, which represents 100% of gross sales on directly written business and the proportion of assumed gross sales under reinsurance agreements. Sales of this product were $87 million for the first quarter of 2026, $142 million for the fourth quarter of 2025 and $26 million for the first quarter of 2025. | ||||||||||||||||||||
Annuities
Adjusted earnings in the Annuities segment were $324 million in the current quarter, compared with adjusted earnings of $314 million in the first quarter of 2025 and adjusted earnings of $304 million in the fourth quarter of 2025.
There were no notable items in the current quarter or the fourth quarter of 2025. The first quarter of 2025 included a $10 million unfavorable notable item.
On a quarter-over-quarter basis, adjusted earnings, less notable items, reflect lower fees and higher amortization of deferred acquisition costs ("DAC"), primarily offset by higher net investment income. On a sequential basis, adjusted earnings, less notable items, primarily reflect higher fees.
As mentioned above, the company reported annuity sales of $2.2 billion, reflecting a decrease of 4% quarter-over-quarter and 20% sequentially.
Life
The Life segment had an adjusted loss of $6 million in the current quarter, compared with adjusted earnings of $9 million in the first quarter of 2025 and adjusted earnings of $18 million in the fourth quarter of 2025.
The current quarter included a $5 million favorable notable item and the fourth quarter of 2025 included a $6 million unfavorable notable item, both related to actuarial refinements. There were no notable items in the first quarter of 2025.
On a quarter-over-quarter basis, adjusted earnings, less notable items, reflect a lower underwriting margin and lower net investment income, partially offset by lower expenses. On a sequential basis, adjusted earnings, less notable items, reflect a lower underwriting margin and lower net investment income.
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As mentioned above, Life sales for the quarter totaled $32 million, representing an 11% decrease both quarter-over-quarter and sequentially.
Run-off
The Run-off segment had an adjusted loss of $48 million in the current quarter, compared with an adjusted loss of $64 million in the first quarter of 2025 and an adjusted loss of $58 million in the fourth quarter of 2025.
The current quarter included a $17 million unfavorable notable item and the fourth quarter of 2025 included a $7 million unfavorable notable item, both related to actuarial refinements. There were no notable items in the first quarter of 2025.
On a quarter-over-quarter basis, the adjusted loss, less notable items, reflects a higher underwriting margin and lower expenses. On a sequential basis, the adjusted loss, less notable items, reflects a higher underwriting margin, partially offset by lower net investment income.
Corporate & Other
The Corporate & Other segment had an adjusted loss of $31 million in the current quarter, compared with an adjusted loss of $24 million in the first quarter of 2025 and an adjusted loss of $50 million in the fourth 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, partially offset by a higher tax benefit. On a sequential basis, the adjusted loss reflects lower expenses.
Net Investment Income and Adjusted Net Investment Income (Unaudited, in millions)
| For the Three Months Ended | ||||||||||||||||||||
| March 31, 2026 | December 31, 2025 | March 31, 2025 | ||||||||||||||||||
| Net investment income | $1,258 | $1,328 | $1,297 | |||||||||||||||||
| Adjusted net investment income | $1,268 | $1,334 | $1,291 | |||||||||||||||||
Net Investment Income
Net investment income was $1,258 million and adjusted net investment income* was $1,268 million in the current quarter.
Adjusted net investment income decreased $23 million on a quarter-over-quarter basis, primarily driven by a reduction in the size of the institutional spread margin business. Adjusted net investment income decreased $66 million sequentially, driven by lower alternative investment income.
The adjusted net investment income yield* was 4.24% during the quarter.
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Statutory Capital and Liquidity (Unaudited, in billions)
| As of | ||||||||||||||||||||
March 31, 2026 (1) | December 31, 2025 | March 31, 2025 | ||||||||||||||||||
| Statutory combined total adjusted capital | $5.0 | $5.3 | $5.5 | |||||||||||||||||
(1) Reflects preliminary statutory results as of March 31, 2026. | ||||||||||||||||||||
Capitalization
As of March 31, 2026:
•Statutory combined total adjusted capital(1) was $5.0 billion, which declined sequentially mainly driven by non-trendable items, including basis risk which can fluctuate quarter to quarter.
•Estimated combined RBC ratio(1) was between 430% and 450%, which is at the upper-end of our target range of 400% to 450% in normal market conditions, and reflects the change in statutory combined total adjusted capital.
▪Holding company liquid assets were $0.9 billion
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(1) Reflects preliminary statutory results as of March 31, 2026.
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Pending Merger with Aquarian Capital
On November 6, 2025, Aquarian Capital LLC (“Aquarian Capital”), a diversified global holding company with a strategic portfolio of insurance and asset management businesses, and Brighthouse Financial, announced that they had entered into a definitive merger agreement under which an affiliate of Aquarian Capital will acquire Brighthouse Financial for $70.00 per share in an all-cash transaction valued at approximately $4.1 billion.
At a special meeting held on February, 12, 2026, Brighthouse Financial stockholders voted to adopt the merger agreement. The transaction is expected to close in 2026 and is subject to customary closing conditions, including receipt of insurance regulatory approvals.
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.
(1) Ranked by 2024 admitted assets. Best's Review®: Top 200 U.S. Life/Health Insurers. AM Best, 2025.
CONTACT
FOR INVESTORS Dana Amante (980) 949-3073 | FOR MEDIA Meghan Lantier (980) 949-4142 | ||||
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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, Brighthouse Financial’s ability to complete the merger in the timeframe or 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; 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; 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
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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; 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:
| Non-GAAP financial measures: | Most directly comparable GAAP financial measures: | ||||
| adjusted earnings | net income (loss) available to shareholders (1) | ||||
| adjusted earnings, less notable items | net income (loss) available to shareholders (1) | ||||
| adjusted revenues | revenues | ||||
| adjusted expenses | expenses | ||||
| adjusted earnings per common share | earnings per common share, diluted (1) | ||||
| adjusted earnings per common share, less notable items | earnings per common share, diluted (1) | ||||
| adjusted return on common equity | return on common equity (2) | ||||
| adjusted return on common equity, less notable items | return on common equity (2) | ||||
| adjusted net investment income | net investment income | ||||
| adjusted net investment income yield | net investment income yield | ||||
__________________ | |||||
(1) Brighthouse uses net income (loss) available to shareholders to refer to net income (loss) available to Brighthouse Financial, Inc.'s common shareholders, and earnings per common share, diluted to refer to net income (loss) available to shareholders per common share. | |||||
| (2) Brighthouse uses return on common equity to refer to return on Brighthouse Financial, Inc.'s common stockholders' equity. | |||||
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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.
Adjusted earnings reflect 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 adjustments to GAAP revenues and GAAP expenses used to calculate adjusted revenues and adjusted expenses, respectively.
The following items are excluded from total revenues in calculating the adjusted revenues component of adjusted earnings:
•Net investment gains (losses);
•Investment gains (losses) on trading securities measured at estimated fair value through net investment income; and
•Net derivative gains (losses) ("NDGL"), excluding earned income and amortization of premium on derivatives that are hedges of investments or that are used to replicate certain investments, but do not qualify for hedge accounting treatment ("Investment Hedge Adjustments").
The following items are excluded from total expenses in calculating the adjusted expenses component of adjusted earnings:
•Change in market risk benefits; and
•Change in fair value of the crediting rate on experience-rated contracts and market value adjustments on institutional group annuities that are economically offset by gains (losses) on the related trading securities ("Market Value Adjustments").
The provision for income tax related to adjusted earnings is calculated using the statutory tax rate of 21%, net of impacts related to the dividends received deduction, tax credits and current period non-recurring items.
Consistent with GAAP guidance for segment reporting, adjusted earnings is also our GAAP measure of segment performance.
Adjusted Earnings per Common Share and Adjusted Return on Common Equity
Adjusted earnings per common share and adjusted return on common equity are measures used by management to evaluate the execution of our business strategy and align such strategy with our shareholders' interests.
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Adjusted earnings per common share is defined as adjusted earnings for the period divided by the weighted average number of fully diluted shares of common stock outstanding for the period. The weighted average common shares outstanding used to calculate adjusted earnings per share will differ from such shares used to calculate diluted net income (loss) available to shareholders per common share when the inclusion of dilutive shares has an anti-dilutive effect for one calculation but not for the other.
Adjusted return on common equity is defined as total annual adjusted earnings on a four quarter trailing basis, divided by the simple average of the most recent five quarters of total Brighthouse Financial, Inc.'s common stockholders' equity, excluding AOCI.
Adjusted Net Investment Income
Adjusted net investment income is used by management to measure our performance, and we believe it enhances the understanding of our investment portfolio results. Adjusted net investment income represents GAAP net investment income plus Investment Hedge Adjustments less investment gains (losses) on trading securities.
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. Adjusted net investment income yield represents adjusted net investment income as a percentage of average quarterly asset carrying values. Asset carrying values exclude unrealized gains (losses), collateral received in connection with our securities lending program, freestanding derivative assets and collateral received from derivative counterparties. Investment fee and expense yields are calculated as a percentage of average quarterly asset estimated fair values. Asset estimated fair values exclude collateral received in connection with our securities lending program, freestanding derivative assets and collateral received from derivative counterparties.
Other Financial Disclosures
Corporate Expenses
Corporate expenses includes functional department expenses, public company expenses, certain investment expenses, retirement funding and incentive compensation.
Notable Items
Certain of the non-GAAP measures described above may be presented further adjusted to exclude notable items. Notable items reflect the unfavorable (favorable) after-tax impact on our results of certain unanticipated items and events, as well as certain items and events that were anticipated. The presentation of notable items and non-GAAP measures, less notable items is intended to help investors better understand our results and to evaluate and forecast those results.
Book Value per Common Share and Book Value per Common Share, excluding AOCI
Brighthouse uses the term "book value" to refer to "Brighthouse Financial, Inc.'s common stockholders' equity, including AOCI." Book value per common share is defined as ending Brighthouse Financial, Inc.'s common stockholders' equity, including AOCI, divided by ending common shares outstanding. Book value per common share, excluding AOCI, is defined as ending Brighthouse Financial, Inc.'s common stockholders' equity, excluding AOCI, divided by ending common shares outstanding.
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Holding Company
Holding company means, collectively, Brighthouse Financial, Inc., Brighthouse Holdings, LLC, and Brighthouse Services, LLC.
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 cash equivalents, short-term investments and publicly-traded securities, excluding assets that are pledged or otherwise committed. Assets pledged or otherwise committed include assets held in trust.
Total Adjusted Capital
Total adjusted capital primarily consists of statutory capital and surplus, as well as the statutory asset valuation reserve. When referred to as “combined,” represents that of our insurance subsidiaries as a whole.
Sales
Life insurance sales consist of 100 percent of annualized new premium for term life, first-year paid premium for whole life, universal life, and variable universal life, and total paid premium for indexed universal life. We exclude company-sponsored internal exchanges, corporate-owned life insurance, bank-owned life insurance, and private placement variable universal life.
Annuity sales consist of 100 percent of direct statutory premiums, except for fixed index annuity sales, which represents 100 percent of gross sales on directly written business and the proportion of assumed gross sales under reinsurance agreements. Annuity sales exclude certain internal exchanges. These sales statistics do not correspond to revenues under GAAP, but are used as relevant measures of business activity.
Risk-Based Capital Ratio
The risk-based capital ratio is a method of measuring an insurance company’s capital, taking into consideration its relative size and risk profile, in order to ensure compliance with minimum regulatory capital requirements set by the National Association of Insurance Commissioners. When referred to as “combined,” represents that of our insurance subsidiaries as a whole. The reporting of our combined risk-based capital ratio is not intended for the purpose of ranking any insurance company or for use in connection with any marketing, advertising or promotional activities.
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Condensed Statements of Operations (Unaudited, in millions)
| For the Three Months Ended | ||||||||||||||||||||
| Revenues | March 31, 2026 | December 31, 2025 | March 31, 2025 | |||||||||||||||||
| Premiums | $168 | $173 | $186 | |||||||||||||||||
| Universal life and investment-type product policy fees | 533 | 534 | 543 | |||||||||||||||||
| Net investment income | 1,258 | 1,328 | 1,297 | |||||||||||||||||
| Other revenues | 129 | 133 | 136 | |||||||||||||||||
| Revenues before NIGL and NDGL | 2,088 | 2,168 | 2,162 | |||||||||||||||||
| Net investment gains (losses) | (52) | (23) | (83) | |||||||||||||||||
| Net derivative gains (losses) | (509) | (456) | 311 | |||||||||||||||||
| Total revenues | $1,527 | $1,689 | $2,390 | |||||||||||||||||
| Expenses | ||||||||||||||||||||
| Policyholder benefits and claims | $637 | $697 | $649 | |||||||||||||||||
| Interest credited to policyholder account balances | 493 | 529 | 561 | |||||||||||||||||
| Amortization of DAC and VOBA | 158 | 159 | 148 | |||||||||||||||||
| Change in market risk benefits | 748 | (349) | 893 | |||||||||||||||||
| Interest expense on debt | 38 | 38 | 38 | |||||||||||||||||
| Other expenses | 439 | 465 | 455 | |||||||||||||||||
| Total expenses | 2,513 | 1,539 | 2,744 | |||||||||||||||||
| Income (loss) before provision for income tax | (986) | 150 | (354) | |||||||||||||||||
| Provision for income tax expense (benefit) | (222) | 12 | (88) | |||||||||||||||||
| Net income (loss) | (764) | 138 | (266) | |||||||||||||||||
| Less: Net income (loss) attributable to noncontrolling interests | 2 | 1 | 2 | |||||||||||||||||
| Net income (loss) attributable to Brighthouse Financial, Inc. | (766) | 137 | (268) | |||||||||||||||||
| Less: Preferred stock dividends | 26 | 25 | 26 | |||||||||||||||||
| Net income (loss) available to Brighthouse Financial, Inc.’s common shareholders | $(792) | $112 | $(294) | |||||||||||||||||
12
PUBLIC RELATIONS Brighthouse Financial, Inc. 11225 N. Community House Rd. Charlotte, NC 28277 | | ||||
Condensed Balance Sheets (Unaudited, in millions)
| As of | ||||||||||||||||||||
| ASSETS | March 31, 2026 | December 31, 2025 | March 31, 2025 | |||||||||||||||||
| Investments: | ||||||||||||||||||||
| Fixed maturity securities available-for-sale | $81,232 | $82,014 | $80,640 | |||||||||||||||||
| Trading securities | 544 | 506 | 365 | |||||||||||||||||
| Equity securities | 76 | 79 | 73 | |||||||||||||||||
| Mortgage loans | 22,620 | 22,755 | 23,051 | |||||||||||||||||
| Policy loans | 1,458 | 1,450 | 1,436 | |||||||||||||||||
| Limited partnerships and limited liability companies | 4,673 | 4,696 | 4,839 | |||||||||||||||||
| Short-term investments | 1,236 | 1,197 | 1,569 | |||||||||||||||||
| Other invested assets | 9,617 | 7,932 | 5,284 | |||||||||||||||||
| Total investments | 121,456 | 120,629 | 117,257 | |||||||||||||||||
| Cash and cash equivalents | 4,907 | 5,387 | 4,667 | |||||||||||||||||
| Accrued investment income | 1,302 | 1,260 | 1,267 | |||||||||||||||||
| Reinsurance recoverables | 20,313 | 20,903 | 20,454 | |||||||||||||||||
| Premiums and other receivables | 513 | 676 | 734 | |||||||||||||||||
| DAC and VOBA | 4,520 | 4,567 | 4,672 | |||||||||||||||||
| Current income tax recoverable | 16 | 16 | 20 | |||||||||||||||||
| Deferred income tax asset | 1,781 | 1,442 | 1,808 | |||||||||||||||||
| Market risk benefit assets | 850 | 1,060 | 914 | |||||||||||||||||
| Other assets | 324 | 332 | 364 | |||||||||||||||||
| Separate account assets | 80,821 | 85,528 | 82,524 | |||||||||||||||||
| Total assets | $236,803 | $241,800 | $234,681 | |||||||||||||||||
| LIABILITIES AND EQUITY | ||||||||||||||||||||
| Liabilities | ||||||||||||||||||||
| Future policy benefits | $31,773 | $32,025 | $31,834 | |||||||||||||||||
| Policyholder account balances | 86,379 | 87,952 | 85,618 | |||||||||||||||||
| Market risk benefit liabilities | 8,564 | 8,063 | 9,165 | |||||||||||||||||
| Other policy-related balances | 3,994 | 3,893 | 3,866 | |||||||||||||||||
| Payables for collateral under securities loaned and other transactions | 4,661 | 4,705 | 3,904 | |||||||||||||||||
| Long-term debt | 3,154 | 3,155 | 3,155 | |||||||||||||||||
| Other liabilities | 11,829 | 9,646 | 9,311 | |||||||||||||||||
| Separate account liabilities | 80,821 | 85,528 | 82,524 | |||||||||||||||||
| Total liabilities | 231,175 | 234,967 | 229,377 | |||||||||||||||||
| Equity | ||||||||||||||||||||
| Preferred stock, at par value | — | — | — | |||||||||||||||||
| Common stock, at par value | 1 | 1 | 1 | |||||||||||||||||
| Additional paid-in capital | 13,869 | 13,870 | 13,939 | |||||||||||||||||
| Retained earnings (deficit) | (1,452) | (686) | (1,387) | |||||||||||||||||
| Treasury stock | (2,699) | (2,688) | (2,644) | |||||||||||||||||
| Accumulated other comprehensive income (loss) | (4,156) | (3,729) | (4,670) | |||||||||||||||||
| Total Brighthouse Financial, Inc.’s stockholders’ equity | 5,563 | 6,768 | 5,239 | |||||||||||||||||
| Noncontrolling interests | 65 | 65 | 65 | |||||||||||||||||
| Total equity | 5,628 | 6,833 | 5,304 | |||||||||||||||||
| Total liabilities and equity | $236,803 | $241,800 | $234,681 | |||||||||||||||||
13
PUBLIC RELATIONS Brighthouse Financial, Inc. 11225 N. Community House Rd. Charlotte, NC 28277 | | ||||
Reconciliation of Net Income (Loss) Available to Shareholders to Adjusted Earnings (Loss) and Adjusted Earnings, Less Notable Items, and Reconciliation of Net Income (Loss) Available to Shareholders per Common Share to Adjusted Earnings (Loss) per Common Share and Adjusted Earnings, Less Notable Items, per Common Share (Unaudited, in millions except per share data)
| For the Three Months Ended | ||||||||||||||||||||
ADJUSTED EARNINGS, LESS NOTABLE ITEMS | March 31, 2026 | December 31, 2025 | March 31, 2025 | |||||||||||||||||
| Net income (loss) available to shareholders | $(792) | $112 | $(294) | |||||||||||||||||
| Less: Net investment gains (losses) | (52) | (23) | (83) | |||||||||||||||||
| Less: Investment gains (losses) on trading securities | (10) | (7) | 6 | |||||||||||||||||
Less: Net derivative gains (losses), excluding investment hedge adjustments | (509) | (455) | 311 | |||||||||||||||||
| Less: Change in market risk benefits | (748) | 349 | (893) | |||||||||||||||||
| Less: Market value adjustments | 13 | 6 | (10) | |||||||||||||||||
Less: Provision for income tax (expense) benefit on reconciling adjustments | 275 | 28 | 140 | |||||||||||||||||
| Adjusted earnings (loss) | 239 | 214 | 235 | |||||||||||||||||
| Less: Notable items | (12) | (13) | (10) | |||||||||||||||||
| Adjusted earnings, less notable items | $251 | $227 | $245 | |||||||||||||||||
ADJUSTED EARNINGS, LESS NOTABLE ITEMS, PER COMMON SHARE (1) | ||||||||||||||||||||
| Net income (loss) available to shareholders per common share | $(13.82) | $1.93 | $(5.04) | |||||||||||||||||
| Less: Net investment gains (losses) | (0.91) | (0.40) | (1.42) | |||||||||||||||||
| Less: Investment gains (losses) on trading securities | (0.17) | (0.12) | 0.10 | |||||||||||||||||
Less: Net derivative gains (losses), excluding investment hedge adjustments | (8.88) | (7.87) | 5.34 | |||||||||||||||||
| Less: Change in market risk benefits | (13.05) | 6.04 | (15.33) | |||||||||||||||||
| Less: Market value adjustments | 0.23 | 0.10 | (0.17) | |||||||||||||||||
| Less: Provision for income tax (expense) benefit on reconciling adjustments | 4.80 | 0.48 | 2.40 | |||||||||||||||||
| Less: Impact of inclusion of dilutive shares | 0.03 | — | 0.03 | |||||||||||||||||
| Adjusted earnings (loss) per common share | 4.15 | 3.70 | 4.01 | |||||||||||||||||
| Less: Notable items | (0.21) | (0.22) | (0.17) | |||||||||||||||||
| Adjusted earnings, less notable items per common share | $4.35 | $3.93 | $4.17 | |||||||||||||||||
(1) Per share calculations are on a diluted basis and may not recalculate or foot due to rounding. See Non-GAAP and Other Financial Disclosures discussion in this news release. | ||||||||||||||||||||
14
PUBLIC RELATIONS Brighthouse Financial, Inc. 11225 N. Community House Rd. Charlotte, NC 28277 | | ||||
Reconciliation of Net Investment Income to Adjusted Net Investment Income (Unaudited, in millions)
| For the Three Months Ended | ||||||||||||||||||||
ADJUSTED NET INVESTMENT INCOME (1) | March 31, 2026 | December 31, 2025 | March 31, 2025 | |||||||||||||||||
| Net investment income | $1,258 | $1,328 | $1,297 | |||||||||||||||||
Add: Investment hedge adjustments | — | (1) | — | |||||||||||||||||
Less: Investment gains (losses) on trading securities | (10) | (7) | 6 | |||||||||||||||||
| Adjusted net investment income | $1,268 | $1,334 | $1,291 | |||||||||||||||||
Reconciliation of Investment Income Yield to Adjusted Net Investment Income Yield
| For the Three Months Ended | ||||||||||||||||||||
| ADJUSTED NET INVESTMENT INCOME YIELD (1) | March 31, 2026 | December 31, 2025 | March 31, 2025 | |||||||||||||||||
| Investment income yield | 4.39% | 4.60% | 4.39% | |||||||||||||||||
| Investment fees and expenses | (0.15)% | (0.16)% | (0.14)% | |||||||||||||||||
| Adjusted net investment income yield | 4.24% | 4.44% | 4.25% | |||||||||||||||||
Notable Items (Unaudited, in millions)
| For the Three Months Ended | ||||||||||||||||||||
NOTABLE ITEMS IMPACTING ADJUSTED EARNINGS | March 31, 2026 | December 31, 2025 | March 31, 2025 | |||||||||||||||||
| Actuarial items and other insurance adjustments | $12 | $13 | $10 | |||||||||||||||||
| Total notable items (1) | $12 | $13 | $10 | |||||||||||||||||
NOTABLE ITEMS BY SEGMENT | ||||||||||||||||||||
| Annuities | $— | $— | $10 | |||||||||||||||||
| Life | (5) | 6 | — | |||||||||||||||||
| Run-off | 17 | 7 | — | |||||||||||||||||
| Corporate & Other | — | — | — | |||||||||||||||||
| Total notable items (1) | $12 | $13 | $10 | |||||||||||||||||
| (1) See Non-GAAP and Other Financial Disclosures discussion in this news release. | ||||||||||||||||||||
15
Exhibit 99.2
Brighthouse Financial, Inc.
Financial Supplement
First Quarter 2026
| Table of Contents | Financial Results | |||||||
Earnings and Select Metrics from Segments | ||||||||
Corporate & Other — Statements of Adjusted Earnings and Select Operating Metrics | ||||||||
| Other Information | ||||||||
Statutory Statement of Operations Information | ||||||||
| Appendix | ||||||||
A-2 | ||||||||
A-6 | ||||||||
A-7 | ||||||||
A-8 | ||||||||
A-9 | ||||||||
A-10 | ||||||||
Note: See the Appendix for non-GAAP financial information, definitions and reconciliations. Financial information, unless otherwise noted, is rounded to millions. Some financial information, therefore, may not sum to the corresponding total.
As used in this financial supplement, “Brighthouse Financial,” “Brighthouse,” the “Company,” “we,” “our” and “us” refer to Brighthouse Financial, Inc.
Financial Results
| Financial Supplement | 1 | |||||||||||||
Key Metrics (Unaudited, dollars in millions except per share amounts)
| As of or For the Three Months Ended | ||||||||||||||||||||||||||||||||||||||||||||
| Financial Results and Metrics (1) | March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | |||||||||||||||||||||||||||||||||||||||
| Net income (loss) available to shareholders | $(792) | $112 | $453 | $60 | $(294) | |||||||||||||||||||||||||||||||||||||||
Adjusted earnings (2) | $239 | $214 | $970 | $198 | $235 | |||||||||||||||||||||||||||||||||||||||
| Adjusted earnings, less notable items (2) | $251 | $227 | $261 | $198 | $245 | |||||||||||||||||||||||||||||||||||||||
| Total corporate expenses (3) | $227 | $234 | $205 | $202 | $239 | |||||||||||||||||||||||||||||||||||||||
Combined total adjusted capital (4) | $5,000 | $5,328 | $5,400 | $5,560 | $5,549 | |||||||||||||||||||||||||||||||||||||||
Combined risk-based capital ratio (4), (5) | 430%-450% | 456% | 435%-455% | 405%-425% | 420%-440% | |||||||||||||||||||||||||||||||||||||||
| Stockholders' Equity | ||||||||||||||||||||||||||||||||||||||||||||
| Brighthouse Financial, Inc.’s stockholders’ equity | $5,563 | $6,768 | $6,363 | $5,673 | $5,239 | |||||||||||||||||||||||||||||||||||||||
| Less: Preferred stock, net | 1,699 | 1,699 | 1,699 | 1,699 | 1,699 | |||||||||||||||||||||||||||||||||||||||
| Brighthouse Financial, Inc.’s common stockholders’ equity, including AOCI | $3,864 | $5,069 | $4,664 | $3,974 | $3,540 | |||||||||||||||||||||||||||||||||||||||
| Less: AOCI | (4,156) | (3,729) | (4,020) | (4,257) | (4,670) | |||||||||||||||||||||||||||||||||||||||
| Brighthouse Financial, Inc.’s common stockholders’ equity, excluding AOCI | $8,020 | $8,798 | $8,684 | $8,231 | $8,210 | |||||||||||||||||||||||||||||||||||||||
Return on Common Equity (1) | ||||||||||||||||||||||||||||||||||||||||||||
| Return on common equity | (4.0)% | 8.1% | 22.5% | 16.5% | 16.4% | |||||||||||||||||||||||||||||||||||||||
| Return on common equity, excluding AOCI | (2.0)% | 3.9% | 10.4% | 6.9% | 6.3% | |||||||||||||||||||||||||||||||||||||||
| Adjusted return on common equity, excluding AOCI | 19.3% | 19.0% | 20.5% | 18.4% | 20.4% | |||||||||||||||||||||||||||||||||||||||
Earnings Per Common Share, Diluted (1), (6) | ||||||||||||||||||||||||||||||||||||||||||||
| Net income (loss) available to shareholders per common share | $(13.82) | $1.93 | $7.89 | $1.02 | $(5.04) | |||||||||||||||||||||||||||||||||||||||
| Adjusted earnings per common share | $4.15 | $3.70 | $16.87 | $3.43 | $4.01 | |||||||||||||||||||||||||||||||||||||||
| Adjusted earnings, less notable items per common share | $4.35 | $3.93 | $4.54 | $3.43 | $4.17 | |||||||||||||||||||||||||||||||||||||||
| Weighted average common shares outstanding | 57,735,327 | 57,829,186 | 57,512,901 | 57,734,170 | 58,697,818 | |||||||||||||||||||||||||||||||||||||||
| Book Value Per Common Share | ||||||||||||||||||||||||||||||||||||||||||||
| Book value per common share (1) | $67.27 | $88.66 | $81.60 | $69.57 | $61.17 | |||||||||||||||||||||||||||||||||||||||
| Book value per common share, excluding AOCI (1) | $139.63 | $153.89 | $151.94 | $144.09 | $141.87 | |||||||||||||||||||||||||||||||||||||||
| Ending common shares outstanding | 57,437,709 | 57,171,217 | 57,153,571 | 57,122,494 | 57,868,389 | |||||||||||||||||||||||||||||||||||||||
(1) See definitions for Non-GAAP and Other Financial Disclosures in the Appendix beginning on page A-2. | ||||||||||||||||||||||||||||||||||||||||||||
| (2) See additional information regarding notable items on page 17. | ||||||||||||||||||||||||||||||||||||||||||||
| (3) Includes functional department expenses, public company expenses, certain investment expenses, retirement funding and incentive compensation. Beginning in 2026, corporate expenses exclude certain transaction-related costs. Corporate expenses excluding certain transaction-related costs were $219 million, $200 million, $195 million and $234 million for the three months ended December 31, 2025, September 30, 2025, June 30, 2025 and March 31, 2025, respectively. | ||||||||||||||||||||||||||||||||||||||||||||
(4) Reflects preliminary statutory results as of or for the three months ended March 31, 2026. See additional information on page 21. | ||||||||||||||||||||||||||||||||||||||||||||
(5) The RBC ratio is reported as a preliminary range for all periods, except those ended December 31. | ||||||||||||||||||||||||||||||||||||||||||||
(6) For loss periods, dilutive shares were not included in the calculation of net income (loss) available to shareholders per common share or adjusted earnings (loss) per common share as inclusion of such shares would have an anti-dilutive effect. | ||||||||||||||||||||||||||||||||||||||||||||
| Financial Supplement | 2 | |||||||||||||
GAAP Statements of Operations (Unaudited, in millions)
| For the Three Months Ended | For the Three Months Ended | |||||||||||||||||||||||||||||||||||||||||||
| Revenues | March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | March 31, 2026 | March 31, 2025 | |||||||||||||||||||||||||||||||||||||
| Premiums | $168 | $173 | $170 | $166 | $186 | $168 | $186 | |||||||||||||||||||||||||||||||||||||
| Universal life and investment-type product policy fees | 533 | 534 | 531 | 553 | 543 | 533 | 543 | |||||||||||||||||||||||||||||||||||||
| Net investment income | 1,258 | 1,328 | 1,334 | 1,285 | 1,297 | 1,258 | 1,297 | |||||||||||||||||||||||||||||||||||||
| Other revenues | 129 | 133 | 143 | 143 | 136 | 129 | 136 | |||||||||||||||||||||||||||||||||||||
| Revenues before NIGL and NDGL | 2,088 | 2,168 | 2,178 | 2,147 | 2,162 | 2,088 | 2,162 | |||||||||||||||||||||||||||||||||||||
| Net investment gains (losses) | (52) | (23) | 48 | (39) | (83) | (52) | (83) | |||||||||||||||||||||||||||||||||||||
| Net derivative gains (losses) | (509) | (456) | (410) | (1,237) | 311 | (509) | 311 | |||||||||||||||||||||||||||||||||||||
| Total revenues | $1,527 | $1,689 | $1,816 | $871 | $2,390 | $1,527 | $2,390 | |||||||||||||||||||||||||||||||||||||
| Expenses | ||||||||||||||||||||||||||||||||||||||||||||
| Policyholder benefits and claims | $637 | $697 | $(252) | $711 | $649 | $637 | $649 | |||||||||||||||||||||||||||||||||||||
| Interest credited to policyholder account balances | 493 | 529 | 561 | 537 | 561 | 493 | 561 | |||||||||||||||||||||||||||||||||||||
| Amortization of DAC and VOBA | 158 | 159 | 153 | 149 | 148 | 158 | 148 | |||||||||||||||||||||||||||||||||||||
| Change in market risk benefits | 748 | (349) | 289 | (1,101) | 893 | 748 | 893 | |||||||||||||||||||||||||||||||||||||
| Interest expense on debt | 38 | 38 | 38 | 38 | 38 | 38 | 38 | |||||||||||||||||||||||||||||||||||||
| Other expenses | 439 | 465 | 442 | 444 | 455 | 439 | 455 | |||||||||||||||||||||||||||||||||||||
| Total expenses | 2,513 | 1,539 | 1,231 | 778 | 2,744 | 2,513 | 2,744 | |||||||||||||||||||||||||||||||||||||
| Income (loss) before provision for income tax | (986) | 150 | 585 | 93 | (354) | (986) | (354) | |||||||||||||||||||||||||||||||||||||
| Provision for income tax expense (benefit) | (222) | 12 | 104 | 8 | (88) | (222) | (88) | |||||||||||||||||||||||||||||||||||||
| Net income (loss) | (764) | 138 | 481 | 85 | (266) | (764) | (266) | |||||||||||||||||||||||||||||||||||||
| Less: Net income (loss) attributable to noncontrolling interests | 2 | 1 | 2 | — | 2 | 2 | 2 | |||||||||||||||||||||||||||||||||||||
| Net income (loss) attributable to Brighthouse Financial, Inc. | (766) | 137 | 479 | 85 | (268) | (766) | (268) | |||||||||||||||||||||||||||||||||||||
| Less: Preferred stock dividends | 26 | 25 | 26 | 25 | 26 | 26 | 26 | |||||||||||||||||||||||||||||||||||||
| Net income (loss) available to Brighthouse Financial, Inc.’s common shareholders | $(792) | $112 | $453 | $60 | $(294) | $(792) | $(294) | |||||||||||||||||||||||||||||||||||||
| Financial Supplement | 3 | |||||||||||||
GAAP Balance Sheets (Unaudited, in millions)
| As of | ||||||||||||||||||||||||||||||||
| ASSETS | March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | |||||||||||||||||||||||||||
| Investments: | ||||||||||||||||||||||||||||||||
| Fixed maturity securities available-for-sale | $81,232 | $82,014 | $81,537 | $80,835 | $80,640 | |||||||||||||||||||||||||||
| Trading securities | 544 | 506 | 528 | 520 | 365 | |||||||||||||||||||||||||||
| Equity securities | 76 | 79 | 78 | 74 | 73 | |||||||||||||||||||||||||||
| Mortgage loans | 22,620 | 22,755 | 22,862 | 22,993 | 23,051 | |||||||||||||||||||||||||||
| Policy loans | 1,458 | 1,450 | 1,439 | 1,425 | 1,436 | |||||||||||||||||||||||||||
| Limited partnerships and limited liability companies | 4,673 | 4,696 | 4,816 | 4,798 | 4,839 | |||||||||||||||||||||||||||
| Short-term investments | 1,236 | 1,197 | 778 | 1,170 | 1,569 | |||||||||||||||||||||||||||
| Other invested assets | 9,617 | 7,932 | 8,842 | 8,932 | 5,284 | |||||||||||||||||||||||||||
| Total investments | 121,456 | 120,629 | 120,880 | 120,747 | 117,257 | |||||||||||||||||||||||||||
| Cash and cash equivalents | 4,907 | 5,387 | 6,606 | 5,540 | 4,667 | |||||||||||||||||||||||||||
| Accrued investment income | 1,302 | 1,260 | 1,350 | 1,235 | 1,267 | |||||||||||||||||||||||||||
| Reinsurance recoverables | 20,313 | 20,903 | 20,400 | 20,701 | 20,454 | |||||||||||||||||||||||||||
| Premiums and other receivables | 513 | 676 | 844 | 557 | 734 | |||||||||||||||||||||||||||
| DAC and VOBA | 4,520 | 4,567 | 4,603 | 4,636 | 4,672 | |||||||||||||||||||||||||||
| Current income tax recoverable | 16 | 16 | 17 | 17 | 20 | |||||||||||||||||||||||||||
| Deferred income tax asset | 1,781 | 1,442 | 1,531 | 1,695 | 1,808 | |||||||||||||||||||||||||||
| Market risk benefit assets | 850 | 1,060 | 979 | 1,084 | 914 | |||||||||||||||||||||||||||
| Other assets | 324 | 332 | 342 | 348 | 364 | |||||||||||||||||||||||||||
| Separate account assets | 80,821 | 85,528 | 87,127 | 86,085 | 82,524 | |||||||||||||||||||||||||||
| Total assets | $236,803 | $241,800 | $244,679 | $242,645 | $234,681 | |||||||||||||||||||||||||||
| LIABILITIES AND EQUITY | ||||||||||||||||||||||||||||||||
| Liabilities | ||||||||||||||||||||||||||||||||
| Future policy benefits | $31,773 | $32,025 | $32,021 | $31,974 | $31,834 | |||||||||||||||||||||||||||
| Policyholder account balances | 86,379 | 87,952 | 88,703 | 88,046 | 85,618 | |||||||||||||||||||||||||||
| Market risk benefit liabilities | 8,564 | 8,063 | 8,529 | 8,051 | 9,165 | |||||||||||||||||||||||||||
| Other policy-related balances | 3,994 | 3,893 | 3,918 | 3,977 | 3,866 | |||||||||||||||||||||||||||
| Payables for collateral under securities loaned and other transactions | 4,661 | 4,705 | 4,347 | 3,994 | 3,904 | |||||||||||||||||||||||||||
| Long-term debt | 3,154 | 3,155 | 3,155 | 3,155 | 3,155 | |||||||||||||||||||||||||||
| Other liabilities | 11,829 | 9,646 | 10,451 | 11,625 | 9,311 | |||||||||||||||||||||||||||
| Separate account liabilities | 80,821 | 85,528 | 87,127 | 86,085 | 82,524 | |||||||||||||||||||||||||||
| Total liabilities | 231,175 | 234,967 | 238,251 | 236,907 | 229,377 | |||||||||||||||||||||||||||
| Equity | ||||||||||||||||||||||||||||||||
| Preferred stock, at par value | — | — | — | — | — | |||||||||||||||||||||||||||
| Common stock, at par value | 1 | 1 | 1 | 1 | 1 | |||||||||||||||||||||||||||
| Additional paid-in capital | 13,869 | 13,870 | 13,893 | 13,918 | 13,939 | |||||||||||||||||||||||||||
| Retained earnings (deficit) | (1,452) | (686) | (823) | (1,302) | (1,387) | |||||||||||||||||||||||||||
| Treasury stock | (2,699) | (2,688) | (2,688) | (2,687) | (2,644) | |||||||||||||||||||||||||||
| Accumulated other comprehensive income (loss) | (4,156) | (3,729) | (4,020) | (4,257) | (4,670) | |||||||||||||||||||||||||||
| Total Brighthouse Financial, Inc.’s stockholders’ equity | 5,563 | 6,768 | 6,363 | 5,673 | 5,239 | |||||||||||||||||||||||||||
| Noncontrolling interests | 65 | 65 | 65 | 65 | 65 | |||||||||||||||||||||||||||
| Total equity | 5,628 | 6,833 | 6,428 | 5,738 | 5,304 | |||||||||||||||||||||||||||
| Total liabilities and equity | $236,803 | $241,800 | $244,679 | $242,645 | $234,681 | |||||||||||||||||||||||||||
Earnings and
Select Metrics from
Segments
| Financial Supplement | 5 | |||||||||||||
Statements of Adjusted Earnings by Segment (Unaudited, in millions)
| For the Three Months Ended March 31, 2026 | ||||||||||||||||||||||||||||||||
| Adjusted revenues | Annuities | Life | Run-off | Corporate & Other | Total | |||||||||||||||||||||||||||
| Premiums | $79 | $89 | $— | $— | $168 | |||||||||||||||||||||||||||
| Universal life and investment-type product policy fees | 388 | 57 | 88 | — | 533 | |||||||||||||||||||||||||||
| Net investment income | 771 | 98 | 268 | 131 | 1,268 | |||||||||||||||||||||||||||
| Other revenues | 117 | 4 | 7 | 1 | 129 | |||||||||||||||||||||||||||
| Total adjusted revenues | $1,355 | $248 | $363 | $132 | $2,098 | |||||||||||||||||||||||||||
| Adjusted expenses | ||||||||||||||||||||||||||||||||
| Policyholder benefits and claims | $124 | $170 | $343 | $— | $637 | |||||||||||||||||||||||||||
| Interest credited to policyholder account balances | 334 | 29 | 53 | 90 | 506 | |||||||||||||||||||||||||||
| Amortization of DAC and VOBA | 137 | 21 | — | — | 158 | |||||||||||||||||||||||||||
| Interest expense on debt | — | — | — | 38 | 38 | |||||||||||||||||||||||||||
| Other operating costs | 360 | 36 | 28 | 15 | 439 | |||||||||||||||||||||||||||
| Total adjusted expenses | 955 | 256 | 424 | 143 | 1,778 | |||||||||||||||||||||||||||
| Adjusted earnings (loss) before provision for income tax | 400 | (8) | (61) | (11) | 320 | |||||||||||||||||||||||||||
| Provision for income tax expense (benefit) | 76 | (2) | (13) | (8) | 53 | |||||||||||||||||||||||||||
| Adjusted earnings (loss) after provision for income tax | 324 | (6) | (48) | (3) | 267 | |||||||||||||||||||||||||||
| Less: Net income (loss) attributable to noncontrolling interests | — | — | — | 2 | 2 | |||||||||||||||||||||||||||
| Less: Preferred stock dividends | — | — | — | 26 | 26 | |||||||||||||||||||||||||||
| Adjusted earnings (loss) | $324 | $(6) | $(48) | $(31) | $239 | |||||||||||||||||||||||||||
| For the Three Months Ended March 31, 2025 | ||||||||||||||||||||||||||||||||
| Adjusted revenues | Annuities | Life | Run-off | Corporate & Other | Total | |||||||||||||||||||||||||||
| Premiums | $65 | $121 | $— | $— | $186 | |||||||||||||||||||||||||||
| Universal life and investment-type product policy fees | 396 | 59 | 88 | — | 543 | |||||||||||||||||||||||||||
| Net investment income | 753 | 107 | 272 | 159 | 1,291 | |||||||||||||||||||||||||||
| Other revenues | 130 | 4 | 7 | (5) | 136 | |||||||||||||||||||||||||||
| Total adjusted revenues | $1,344 | $291 | $367 | $154 | $2,156 | |||||||||||||||||||||||||||
| Adjusted expenses | ||||||||||||||||||||||||||||||||
| Policyholder benefits and claims | $110 | $187 | $352 | $— | $649 | |||||||||||||||||||||||||||
| Interest credited to policyholder account balances | 358 | 27 | 60 | 106 | 551 | |||||||||||||||||||||||||||
| Amortization of DAC and VOBA | 126 | 22 | — | — | 148 | |||||||||||||||||||||||||||
| Interest expense on debt | — | — | — | 38 | 38 | |||||||||||||||||||||||||||
| Other operating costs | 363 | 45 | 36 | 11 | 455 | |||||||||||||||||||||||||||
| Total adjusted expenses | 957 | 281 | 448 | 155 | 1,841 | |||||||||||||||||||||||||||
| Adjusted earnings (loss) before provision for income tax | 387 | 10 | (81) | (1) | 315 | |||||||||||||||||||||||||||
| Provision for income tax expense (benefit) | 73 | 1 | (17) | (5) | 52 | |||||||||||||||||||||||||||
| Adjusted earnings (loss) after provision for income tax | 314 | 9 | (64) | 4 | 263 | |||||||||||||||||||||||||||
| Less: Net income (loss) attributable to noncontrolling interests | — | — | — | 2 | 2 | |||||||||||||||||||||||||||
| Less: Preferred stock dividends | — | — | — | 26 | 26 | |||||||||||||||||||||||||||
| Adjusted earnings (loss) | $314 | $9 | $(64) | $(24) | $235 | |||||||||||||||||||||||||||
| Financial Supplement | 6 | |||||||||||||
Annuities — Statements of Adjusted Earnings (Unaudited, in millions)
| For the Three Months Ended | For the Three Months Ended | |||||||||||||||||||||||||||||||||||||||||||
| Adjusted revenues | March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | March 31, 2026 | March 31, 2025 | |||||||||||||||||||||||||||||||||||||
| Premiums | $79 | $72 | $68 | $60 | $65 | $79 | $65 | |||||||||||||||||||||||||||||||||||||
| Universal life and investment-type product policy fees | 388 | 364 | 372 | 385 | 396 | 388 | 396 | |||||||||||||||||||||||||||||||||||||
| Net investment income | 771 | 776 | 770 | 757 | 753 | 771 | 753 | |||||||||||||||||||||||||||||||||||||
| Other revenues | 117 | 122 | 126 | 129 | 130 | 117 | 130 | |||||||||||||||||||||||||||||||||||||
| Total adjusted revenues | $1,355 | $1,334 | $1,336 | $1,331 | $1,344 | $1,355 | $1,344 | |||||||||||||||||||||||||||||||||||||
| Adjusted expenses | ||||||||||||||||||||||||||||||||||||||||||||
| Policyholder benefits and claims | $124 | $123 | $125 | $98 | $110 | $124 | $110 | |||||||||||||||||||||||||||||||||||||
| Interest credited to policyholder account balances | 334 | 352 | 357 | 354 | 358 | 334 | 358 | |||||||||||||||||||||||||||||||||||||
| Amortization of DAC and VOBA | 137 | 138 | 131 | 127 | 126 | 137 | 126 | |||||||||||||||||||||||||||||||||||||
| Interest expense on debt | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||
| Other operating costs | 360 | 344 | 348 | 342 | 363 | 360 | 363 | |||||||||||||||||||||||||||||||||||||
| Total adjusted expenses | 955 | 957 | 961 | 921 | 957 | 955 | 957 | |||||||||||||||||||||||||||||||||||||
| Adjusted earnings before provision for income tax | 400 | 377 | 375 | 410 | 387 | 400 | 387 | |||||||||||||||||||||||||||||||||||||
| Provision for income tax expense (benefit) | 76 | 73 | 71 | 78 | 73 | 76 | 73 | |||||||||||||||||||||||||||||||||||||
| Adjusted earnings | $324 | $304 | $304 | $332 | $314 | $324 | $314 | |||||||||||||||||||||||||||||||||||||
| Financial Supplement | 7 | |||||||||||||
Annuities — Select Operating Metrics (Unaudited, in millions)
| For the Three Months Ended | ||||||||||||||||||||||||||||||||
| VARIABLE AND SHIELD LEVEL ANNUITIES ACCOUNT VALUE (1) | March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | |||||||||||||||||||||||||||
| Account value, beginning of period | $129,906 | $130,470 | $127,180 | $120,963 | $125,121 | |||||||||||||||||||||||||||
| Premiums and deposits (2) | 2,109 | 2,342 | 2,309 | 2,188 | 2,201 | |||||||||||||||||||||||||||
| Withdrawals, surrenders and contract benefits | (4,670) | (5,009) | (4,594) | (4,190) | (4,156) | |||||||||||||||||||||||||||
| Net flows (3) | (2,561) | (2,667) | (2,285) | (2,002) | (1,955) | |||||||||||||||||||||||||||
| Investment performance (4) | (2,650) | 2,621 | 6,129 | 8,758 | (1,715) | |||||||||||||||||||||||||||
| Policy charges and other | (467) | (518) | (554) | (539) | (488) | |||||||||||||||||||||||||||
| Account value, end of period | $124,228 | $129,906 | $130,470 | $127,180 | $120,963 | |||||||||||||||||||||||||||
| FIXED ANNUITIES ACCOUNT VALUE (5) | ||||||||||||||||||||||||||||||||
| Account value, beginning of period | $17,820 | $18,456 | $19,339 | $19,355 | $19,577 | |||||||||||||||||||||||||||
| Premiums and deposits (2) | 144 | 469 | 506 | 504 | 131 | |||||||||||||||||||||||||||
| Withdrawals, surrenders and contract benefits | (755) | (1,277) | (1,615) | (688) | (562) | |||||||||||||||||||||||||||
| Net flows (3) | (611) | (808) | (1,109) | (184) | (431) | |||||||||||||||||||||||||||
| Interest credited | 159 | 164 | 170 | 169 | 168 | |||||||||||||||||||||||||||
| Other | 36 | 8 | 56 | (1) | 41 | |||||||||||||||||||||||||||
| Account value, end of period | $17,404 | $17,820 | $18,456 | $19,339 | $19,355 | |||||||||||||||||||||||||||
INSTITUTIONAL GROUP ANNUITIES ACCOUNT VALUE (1) | ||||||||||||||||||||||||||||||||
Institutional group annuities account value, end of period | $595 | $569 | $584 | $566 | $401 | |||||||||||||||||||||||||||
| INCOME ANNUITIES (1) | ||||||||||||||||||||||||||||||||
| Income annuity insurance liabilities, end of period | $4,750 | $4,788 | $4,755 | $4,645 | $4,583 | |||||||||||||||||||||||||||
| (1) Includes general account and separate account. | ||||||||||||||||||||||||||||||||
| (2) Includes premiums and deposits directed to the general account investment option of variable products. | ||||||||||||||||||||||||||||||||
| (3) Deposits and withdrawals include policy exchanges. | ||||||||||||||||||||||||||||||||
| (4) Includes the interest credited on the general account option of variable products. | ||||||||||||||||||||||||||||||||
| (5) Includes fixed index annuities. | ||||||||||||||||||||||||||||||||
| Financial Supplement | 8 | |||||||||||||
Annuities — Select Operating Metrics (Cont.) (Unaudited, in millions)
| For the Three Months Ended | For the Three Months Ended | |||||||||||||||||||||||||||||||||||||||||||
| VARIABLE AND SHIELD LEVEL ANNUITY SALES | March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | March 31, 2026 | March 31, 2025 | |||||||||||||||||||||||||||||||||||||
| Shield Level Annuities (1) | $1,868 | $2,074 | $2,052 | $1,925 | $1,957 | $1,868 | $1,957 | |||||||||||||||||||||||||||||||||||||
| GMWB | 107 | 118 | 115 | 109 | 103 | 107 | 103 | |||||||||||||||||||||||||||||||||||||
| GMDB only | 55 | 69 | 55 | 67 | 58 | 55 | 58 | |||||||||||||||||||||||||||||||||||||
| GMIB | 3 | 2 | 3 | 4 | 4 | 3 | 4 | |||||||||||||||||||||||||||||||||||||
| Total variable and Shield Level annuity sales | $2,033 | $2,263 | $2,225 | $2,105 | $2,122 | $2,033 | $2,122 | |||||||||||||||||||||||||||||||||||||
| FIXED AND INCOME ANNUITY SALES | ||||||||||||||||||||||||||||||||||||||||||||
| Fixed index annuities (2) | $87 | $142 | $126 | $89 | $26 | $87 | $26 | |||||||||||||||||||||||||||||||||||||
| Fixed deferred annuities | 55 | 324 | 377 | 412 | 103 | 55 | 103 | |||||||||||||||||||||||||||||||||||||
| Single premium immediate annuities | 2 | 2 | 1 | 2 | 5 | 2 | 5 | |||||||||||||||||||||||||||||||||||||
| Other fixed and income annuities | 1 | 3 | 2 | 2 | 3 | 1 | 3 | |||||||||||||||||||||||||||||||||||||
| Total fixed and income annuity sales | $145 | $471 | $506 | $505 | $137 | $145 | $137 | |||||||||||||||||||||||||||||||||||||
| (1) Shield Level Annuities refers to our suite of structured annuities consisting of products marketed under various names. | ||||||||||||||||||||||||||||||||||||||||||||
| (2) Represents 100% of gross sales on directly written business and the proportion of assumed gross sales under reinsurance agreements. | ||||||||||||||||||||||||||||||||||||||||||||
| Financial Supplement | 9 | |||||||||||||
Life — Statements of Adjusted Earnings (Unaudited, in millions)
| For the Three Months Ended | For the Three Months Ended | |||||||||||||||||||||||||||||||||||||||||||
| Adjusted revenues | March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | March 31, 2026 | March 31, 2025 | |||||||||||||||||||||||||||||||||||||
| Premiums | $89 | $101 | $102 | $104 | $121 | $89 | $121 | |||||||||||||||||||||||||||||||||||||
| Universal life and investment-type product policy fees | 57 | 83 | 74 | 78 | 59 | 57 | 59 | |||||||||||||||||||||||||||||||||||||
| Net investment income | 98 | 111 | 117 | 97 | 107 | 98 | 107 | |||||||||||||||||||||||||||||||||||||
| Other revenues | 4 | 3 | 4 | 4 | 4 | 4 | 4 | |||||||||||||||||||||||||||||||||||||
| Total adjusted revenues | $248 | $298 | $297 | $283 | $291 | $248 | $291 | |||||||||||||||||||||||||||||||||||||
| Adjusted expenses | ||||||||||||||||||||||||||||||||||||||||||||
| Policyholder benefits and claims | $170 | $182 | $142 | $213 | $187 | $170 | $187 | |||||||||||||||||||||||||||||||||||||
| Interest credited to policyholder account balances | 29 | 30 | 30 | 28 | 27 | 29 | 27 | |||||||||||||||||||||||||||||||||||||
| Amortization of DAC and VOBA | 21 | 21 | 22 | 22 | 22 | 21 | 22 | |||||||||||||||||||||||||||||||||||||
| Interest expense on debt | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||
| Other operating costs | 36 | 46 | 54 | 53 | 45 | 36 | 45 | |||||||||||||||||||||||||||||||||||||
| Total adjusted expenses | 256 | 279 | 248 | 316 | 281 | 256 | 281 | |||||||||||||||||||||||||||||||||||||
| Adjusted earnings (loss) before provision for income tax | (8) | 19 | 49 | (33) | 10 | (8) | 10 | |||||||||||||||||||||||||||||||||||||
| Provision for income tax expense (benefit) | (2) | 1 | 9 | (7) | 1 | (2) | 1 | |||||||||||||||||||||||||||||||||||||
| Adjusted earnings (loss) | $(6) | $18 | $40 | $(26) | $9 | $(6) | $9 | |||||||||||||||||||||||||||||||||||||
| Financial Supplement | 10 | |||||||||||||
Life — Select Operating Metrics (Unaudited, in millions)
| For the Three Months Ended | ||||||||||||||||||||||||||||||||
| LIFE ACCOUNT VALUE: GENERAL ACCOUNT | March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | |||||||||||||||||||||||||||
| Universal and variable universal life account value, beginning of period | $2,627 | $2,615 | $2,605 | $2,597 | $2,590 | |||||||||||||||||||||||||||
| Premiums and deposits (1) | 61 | 66 | 65 | 62 | 69 | |||||||||||||||||||||||||||
| Withdrawals, surrenders and contract benefits | (33) | (38) | (36) | (41) | (46) | |||||||||||||||||||||||||||
| Net flows | 28 | 28 | 29 | 21 | 23 | |||||||||||||||||||||||||||
| Net transfers from (to) separate account | 8 | 10 | 12 | 8 | 10 | |||||||||||||||||||||||||||
| Interest credited | 27 | 29 | 29 | 26 | 27 | |||||||||||||||||||||||||||
| Policy charges and other | (61) | (55) | (60) | (47) | (53) | |||||||||||||||||||||||||||
| Universal and variable universal life account value, end of period | $2,629 | $2,627 | $2,615 | $2,605 | $2,597 | |||||||||||||||||||||||||||
| LIFE ACCOUNT VALUE: SEPARATE ACCOUNT | ||||||||||||||||||||||||||||||||
| Variable universal life account value, beginning of period | $6,860 | $6,859 | $6,632 | $6,125 | $6,419 | |||||||||||||||||||||||||||
| Premiums and deposits | 34 | 35 | 34 | 36 | 38 | |||||||||||||||||||||||||||
| Withdrawals, surrenders and contract benefits | (87) | (83) | (89) | (71) | (92) | |||||||||||||||||||||||||||
| Net flows | (53) | (48) | (55) | (35) | (54) | |||||||||||||||||||||||||||
| Investment performance | (249) | 118 | 341 | 605 | (180) | |||||||||||||||||||||||||||
| Net transfers from (to) general account | (8) | (10) | (12) | (8) | (10) | |||||||||||||||||||||||||||
| Policy charges and other | (53) | (59) | (47) | (55) | (50) | |||||||||||||||||||||||||||
| Variable universal life account value, end of period | $6,497 | $6,860 | $6,859 | $6,632 | $6,125 | |||||||||||||||||||||||||||
| (1) Includes premiums and deposits directed to the general account investment option of variable products. | ||||||||||||||||||||||||||||||||
| Financial Supplement | 11 | |||||||||||||
Life — Select Operating Metrics (Cont.) (Unaudited, in millions)
| For the Three Months Ended | For the Three Months Ended | |||||||||||||||||||||||||||||||||||||||||||
| LIFE SALES | March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | March 31, 2026 | March 31, 2025 | |||||||||||||||||||||||||||||||||||||
| Total life sales | $32 | $36 | $38 | $33 | $36 | $32 | $36 | |||||||||||||||||||||||||||||||||||||
| As of | ||||||||||||||||||||||||||||||||
| LIFE INSURANCE IN-FORCE | March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | |||||||||||||||||||||||||||
| Whole Life | ||||||||||||||||||||||||||||||||
| Life Insurance in-force, before reinsurance | $15,931 | $16,098 | $16,280 | $16,441 | $16,666 | |||||||||||||||||||||||||||
| Life Insurance in-force, net of reinsurance | $2,737 | $2,761 | $2,799 | $2,818 | $2,855 | |||||||||||||||||||||||||||
| Term Life | ||||||||||||||||||||||||||||||||
| Life Insurance in-force, before reinsurance | $306,263 | $312,477 | $319,061 | $325,210 | $331,301 | |||||||||||||||||||||||||||
| Life Insurance in-force, net of reinsurance | $253,538 | $258,169 | $263,178 | $267,845 | $272,711 | |||||||||||||||||||||||||||
| Universal and Variable Universal Life | ||||||||||||||||||||||||||||||||
| Life Insurance in-force, before reinsurance | $40,235 | $41,053 | $41,500 | $41,726 | $41,735 | |||||||||||||||||||||||||||
| Life Insurance in-force, net of reinsurance | $30,886 | $31,603 | $31,915 | $32,026 | $31,926 | |||||||||||||||||||||||||||
| Financial Supplement | 12 | |||||||||||||
Run-off — Statements of Adjusted Earnings (Unaudited, in millions)
| For the Three Months Ended | For the Three Months Ended | |||||||||||||||||||||||||||||||||||||||||||
| Adjusted revenues | March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | March 31, 2026 | March 31, 2025 | |||||||||||||||||||||||||||||||||||||
| Premiums | $— | $— | $— | $2 | $— | $— | $— | |||||||||||||||||||||||||||||||||||||
| Universal life and investment-type product policy fees | 88 | 87 | 85 | 90 | 88 | 88 | 88 | |||||||||||||||||||||||||||||||||||||
| Net investment income | 268 | 305 | 292 | 283 | 272 | 268 | 272 | |||||||||||||||||||||||||||||||||||||
| Other revenues | 7 | 6 | 8 | 7 | 7 | 7 | 7 | |||||||||||||||||||||||||||||||||||||
| Total adjusted revenues | $363 | $398 | $385 | $382 | $367 | $363 | $367 | |||||||||||||||||||||||||||||||||||||
| Adjusted expenses | ||||||||||||||||||||||||||||||||||||||||||||
| Policyholder benefits and claims | $343 | $392 | $(519) | $400 | $352 | $343 | $352 | |||||||||||||||||||||||||||||||||||||
| Interest credited to policyholder account balances | 53 | 56 | 61 | 58 | 60 | 53 | 60 | |||||||||||||||||||||||||||||||||||||
| Amortization of DAC and VOBA | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||
| Interest expense on debt | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||
| Other operating costs | 28 | 31 | 32 | 29 | 36 | 28 | 36 | |||||||||||||||||||||||||||||||||||||
| Total adjusted expenses | 424 | 479 | (426) | 487 | 448 | 424 | 448 | |||||||||||||||||||||||||||||||||||||
| Adjusted earnings (loss) before provision for income tax | (61) | (81) | 811 | (105) | (81) | (61) | (81) | |||||||||||||||||||||||||||||||||||||
| Provision for income tax expense (benefit) | (13) | (23) | 170 | (22) | (17) | (13) | (17) | |||||||||||||||||||||||||||||||||||||
| Adjusted earnings (loss) | $(48) | $(58) | $641 | $(83) | $(64) | $(48) | $(64) | |||||||||||||||||||||||||||||||||||||
| Financial Supplement | 13 | |||||||||||||
Run-off — Select Operating Metrics (Unaudited, in millions)
| For the Three Months Ended | ||||||||||||||||||||||||||||||||
| UNIVERSAL LIFE WITH SECONDARY GUARANTEES ACCOUNT VALUE | March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | |||||||||||||||||||||||||||
| Account value, beginning of period | $4,461 | $4,548 | $4,619 | $4,710 | $4,779 | |||||||||||||||||||||||||||
| Premiums and deposits (1) | 152 | 145 | 146 | 156 | 157 | |||||||||||||||||||||||||||
| Withdrawals, surrenders and contract benefits | (26) | (34) | (20) | (42) | (20) | |||||||||||||||||||||||||||
| Net flows | 126 | 111 | 126 | 114 | 137 | |||||||||||||||||||||||||||
| Interest credited | 37 | 39 | 39 | 39 | 40 | |||||||||||||||||||||||||||
| Policy charges and other | (236) | (237) | (236) | (244) | (246) | |||||||||||||||||||||||||||
| Account value, end of period | $4,388 | $4,461 | $4,548 | $4,619 | $4,710 | |||||||||||||||||||||||||||
| As of | ||||||||||||||||||||||||||||||||
| LIFE INSURANCE IN-FORCE | March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | |||||||||||||||||||||||||||
| Universal Life with Secondary Guarantees | ||||||||||||||||||||||||||||||||
| Life Insurance in-force, before reinsurance | $65,867 | $66,293 | $66,904 | $67,445 | $68,039 | |||||||||||||||||||||||||||
| Life Insurance in-force, net of reinsurance | $31,867 | $32,190 | $32,556 | $32,879 | $33,212 | |||||||||||||||||||||||||||
| (1) Includes premiums and deposits directed to the general account investment option of variable products. | ||||||||||||||||||||||||||||||||
| Financial Supplement | 14 | |||||||||||||
Corporate & Other — Statements of Adjusted Earnings and Select Operating Metrics (Unaudited, in millions)
| For the Three Months Ended | For the Three Months Ended | |||||||||||||||||||||||||||||||||||||||||||
| Adjusted revenues | March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | March 31, 2026 | March 31, 2025 | |||||||||||||||||||||||||||||||||||||
| Premiums | $— | $— | $— | $— | $— | $— | $— | |||||||||||||||||||||||||||||||||||||
| Universal life and investment-type product policy fees | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||
| Net investment income | 131 | 142 | 148 | 155 | 159 | 131 | 159 | |||||||||||||||||||||||||||||||||||||
| Other revenues | 1 | 2 | 5 | 3 | (5) | 1 | (5) | |||||||||||||||||||||||||||||||||||||
| Total adjusted revenues | $132 | $144 | $153 | $158 | $154 | $132 | $154 | |||||||||||||||||||||||||||||||||||||
| Adjusted expenses | ||||||||||||||||||||||||||||||||||||||||||||
| Policyholder benefits and claims | $— | $— | $— | $— | $— | $— | $— | |||||||||||||||||||||||||||||||||||||
| Interest credited to policyholder account balances | 90 | 97 | 103 | 103 | 106 | 90 | 106 | |||||||||||||||||||||||||||||||||||||
| Amortization of DAC and VOBA | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||
| Interest expense on debt | 38 | 38 | 38 | 38 | 38 | 38 | 38 | |||||||||||||||||||||||||||||||||||||
| Other operating costs | 15 | 44 | 8 | 20 | 11 | 15 | 11 | |||||||||||||||||||||||||||||||||||||
| Total adjusted expenses | 143 | 179 | 149 | 161 | 155 | 143 | 155 | |||||||||||||||||||||||||||||||||||||
| Adjusted earnings before provision for income tax | (11) | (35) | 4 | (3) | (1) | (11) | (1) | |||||||||||||||||||||||||||||||||||||
| Provision for income tax expense (benefit) | (8) | (11) | (9) | (3) | (5) | (8) | (5) | |||||||||||||||||||||||||||||||||||||
| Adjusted earnings (loss) after provision for income tax | (3) | (24) | 13 | — | 4 | (3) | 4 | |||||||||||||||||||||||||||||||||||||
| Less: Net income (loss) attributable to noncontrolling interests | 2 | 1 | 2 | — | 2 | 2 | 2 | |||||||||||||||||||||||||||||||||||||
| Less: Preferred stock dividends | 26 | 25 | 26 | 25 | 26 | 26 | 26 | |||||||||||||||||||||||||||||||||||||
| Adjusted earnings (loss) | $(31) | $(50) | $(15) | $(25) | $(24) | $(31) | $(24) | |||||||||||||||||||||||||||||||||||||
INSTITUTIONAL SPREAD MARGIN BUSINESS ACCOUNT BALANCE | ||||||||||||||||||||||||||||||||||||||||||||
Institutional spread margin business account balance, end of period | $9,328 | $9,477 | $9,850 | $10,149 | $10,092 | |||||||||||||||||||||||||||||||||||||||
Other Information
| Financial Supplement | 16 | |||||||||||||
Change in Market Risk Benefits and Net Derivative Gains (Losses) (Unaudited, in millions)
| For the Three Months Ended | For the Three Months Ended | |||||||||||||||||||||||||||||||||||||||||||
| CHANGE IN MARKET RISK BENEFITS | March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | March 31, 2026 | March 31, 2025 | |||||||||||||||||||||||||||||||||||||
| Market risk benefits mark-to-market | $(835) | $205 | $(424) | $1,020 | $(999) | $(835) | $(999) | |||||||||||||||||||||||||||||||||||||
| Market risk benefits fees, net of claims | 75 | 151 | 136 | 97 | 95 | 75 | 95 | |||||||||||||||||||||||||||||||||||||
| Ceded reinsurance | 12 | (7) | (1) | (16) | 11 | 12 | 11 | |||||||||||||||||||||||||||||||||||||
| Total change in market risk benefits | $(748) | $349 | $(289) | $1,101 | $(893) | $(748) | $(893) | |||||||||||||||||||||||||||||||||||||
| For the Three Months Ended | For the Three Months Ended | |||||||||||||||||||||||||||||||||||||||||||
| NET DERIVATIVE GAINS (LOSSES) | March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | March 31, 2026 | March 31, 2025 | |||||||||||||||||||||||||||||||||||||
| Net derivative gains (losses): | ||||||||||||||||||||||||||||||||||||||||||||
| Variable annuity and Shield hedges | $(1,327) | $(12) | $1,310 | $1,073 | $(877) | $(1,327) | $(877) | |||||||||||||||||||||||||||||||||||||
| Shield embedded derivatives | 805 | (354) | (1,694) | (2,103) | 1,171 | 805 | 1,171 | |||||||||||||||||||||||||||||||||||||
| ULSG hedges | (8) | (69) | (10) | (154) | 22 | (8) | 22 | |||||||||||||||||||||||||||||||||||||
| Other hedges and embedded derivatives | 21 | (20) | (16) | (54) | (5) | 21 | (5) | |||||||||||||||||||||||||||||||||||||
| Subtotal | (509) | (455) | (410) | (1,238) | 311 | (509) | 311 | |||||||||||||||||||||||||||||||||||||
| Investment hedge adjustments | — | (1) | — | 1 | — | — | — | |||||||||||||||||||||||||||||||||||||
| Total net derivative gains (losses) | $(509) | $(456) | $(410) | $(1,237) | $311 | $(509) | $311 | |||||||||||||||||||||||||||||||||||||
| Financial Supplement | 17 | |||||||||||||
Notable Items (Unaudited, in millions)
| For the Three Months Ended | For the Three Months Ended | |||||||||||||||||||||||||||||||||||||||||||
| NOTABLE ITEMS IMPACTING ADJUSTED EARNINGS | March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | March 31, 2026 | March 31, 2025 | |||||||||||||||||||||||||||||||||||||
| Actuarial items and other insurance adjustments | $12 | $13 | $(709) | $— | $10 | $12 | $10 | |||||||||||||||||||||||||||||||||||||
| Total notable items (1) | $12 | $13 | $(709) | $— | $10 | $12 | $10 | |||||||||||||||||||||||||||||||||||||
| NOTABLE ITEMS BY SEGMENT | ||||||||||||||||||||||||||||||||||||||||||||
| Annuities | $— | $— | $7 | $— | $10 | $— | $10 | |||||||||||||||||||||||||||||||||||||
| Life | (5) | 6 | (11) | — | — | (5) | — | |||||||||||||||||||||||||||||||||||||
| Run-off | 17 | 7 | (705) | — | — | 17 | — | |||||||||||||||||||||||||||||||||||||
| Corporate & Other | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||
| Total notable items (1) | $12 | $13 | $(709) | $— | $10 | $12 | $10 | |||||||||||||||||||||||||||||||||||||
| (1) See definitions for Non-GAAP and Other Financial Disclosures in the Appendix beginning on page A-2. | ||||||||||||||||||||||||||||||||||||||||||||
| Financial Supplement | 18 | |||||||||||||
Variable Annuity Separate Account Returns and Allocations (Unaudited)
| For the Three Months Ended | ||||||||||||||||||||||||||||||||
| VARIABLE ANNUITY SEPARATE ACCOUNT RETURNS | March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | |||||||||||||||||||||||||||
| Total Quarterly VA separate account gross returns | (1.84)% | 2.14% | 4.96% | 7.59% | (0.54)% | |||||||||||||||||||||||||||
| TOTAL VARIABLE ANNUITY SEPARATE ACCOUNT ALLOCATIONS | ||||||||||||||||||||||||||||||||
| Percent allocated to equity funds | 31.81% | 32.56% | 32.61% | 32.54% | 31.28% | |||||||||||||||||||||||||||
| Percent allocated to bond funds/other funds | 9.50% | 9.20% | 9.13% | 9.04% | 9.58% | |||||||||||||||||||||||||||
| Percent allocated to target volatility funds | 18.14% | 17.77% | 17.85% | 17.81% | 18.41% | |||||||||||||||||||||||||||
| Percent allocated to balanced funds | 40.55% | 40.47% | 40.41% | 40.61% | 40.73% | |||||||||||||||||||||||||||
| Financial Supplement | 19 | |||||||||||||
Summary of Investments (Unaudited, dollars in millions)
| March 31, 2026 | December 31, 2025 | |||||||||||||||||||||||||
| Amount | % of Total | Amount | % of Total | |||||||||||||||||||||||
| Fixed maturity securities: | ||||||||||||||||||||||||||
| U.S. corporate securities | $38,336 | 30.34% | $38,909 | 30.88% | ||||||||||||||||||||||
| Foreign corporate securities | 11,103 | 8.79% | 11,497 | 9.12% | ||||||||||||||||||||||
| Residential mortgage-backed securities | 8,879 | 7.03% | 8,532 | 6.77% | ||||||||||||||||||||||
| U.S. government and agency securities | 6,663 | 5.27% | 6,711 | 5.32% | ||||||||||||||||||||||
| Asset-backed securities | 6,102 | 4.83% | 6,059 | 4.81% | ||||||||||||||||||||||
| Commercial mortgage-backed securities | 5,840 | 4.62% | 5,870 | 4.66% | ||||||||||||||||||||||
| State and political subdivision securities | 3,414 | 2.70% | 3,494 | 2.77% | ||||||||||||||||||||||
| Foreign government securities | 895 | 0.71% | 942 | 0.75% | ||||||||||||||||||||||
| Total fixed maturity securities | 81,232 | 64.29% | 82,014 | 65.08% | ||||||||||||||||||||||
| Trading securities | 544 | 0.43% | 506 | 0.40% | ||||||||||||||||||||||
| Equity securities | 76 | 0.06% | 79 | 0.06% | ||||||||||||||||||||||
| Mortgage loans: | ||||||||||||||||||||||||||
| Commercial mortgage loans | 12,134 | 9.60% | 12,323 | 9.78% | ||||||||||||||||||||||
| Residential mortgage loans | 6,052 | 4.79% | 5,976 | 4.74% | ||||||||||||||||||||||
| Agricultural mortgage loans | 4,644 | 3.68% | 4,656 | 3.70% | ||||||||||||||||||||||
| Allowance for credit losses | (210) | (0.17)% | (200) | (0.16)% | ||||||||||||||||||||||
| Total mortgage loans, net | 22,620 | 17.90% | 22,755 | 18.06% | ||||||||||||||||||||||
| Policy loans | 1,458 | 1.15% | 1,450 | 1.15% | ||||||||||||||||||||||
| Limited partnerships and limited liability companies | 4,673 | 3.70% | 4,696 | 3.73% | ||||||||||||||||||||||
| Cash, cash equivalents and short-term investments | 6,143 | 4.86% | 6,584 | 5.22% | ||||||||||||||||||||||
| Other invested assets: | ||||||||||||||||||||||||||
| Derivatives: | ||||||||||||||||||||||||||
| Equity market | 7,715 | 6.11% | 6,121 | 4.86% | ||||||||||||||||||||||
| Interest rate | 278 | 0.22% | 297 | 0.23% | ||||||||||||||||||||||
| Foreign currency exchange rate | 436 | 0.35% | 350 | 0.28% | ||||||||||||||||||||||
| Credit | 19 | 0.01% | 11 | 0.01% | ||||||||||||||||||||||
| Total derivatives | 8,448 | 6.69% | 6,779 | 5.38% | ||||||||||||||||||||||
| ICOLI | 837 | 0.66% | 822 | 0.65% | ||||||||||||||||||||||
| FHLB common stock | 217 | 0.17% | 217 | 0.17% | ||||||||||||||||||||||
| Other | 115 | 0.09% | 114 | 0.10% | ||||||||||||||||||||||
| Total other invested assets | 9,617 | 7.61% | 7,932 | 6.30% | ||||||||||||||||||||||
| Total investments and cash and cash equivalents | $126,363 | 100.00% | $126,016 | 100.00% | ||||||||||||||||||||||
| For the Three Months Ended | ||||||||||||||||||||||||||||||||
| March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | ||||||||||||||||||||||||||||
Adjusted net investment income yield (1) | 4.24% | 4.44% | 4.40% | 4.28% | 4.25% | |||||||||||||||||||||||||||
| (1) See definitions for Non-GAAP and Other Financial Disclosures in the Appendix beginning on page A-2. | ||||||||||||||||||||||||||||||||
| Financial Supplement | 20 | |||||||||||||
Statutory Statement of Operations Information (Unaudited, in millions)
| For the Three Months Ended | For the Three Months Ended | |||||||||||||||||||||||||||||||||||||||||||
| COMBINED REVENUES AND EXPENSES (1) | PRELIMINARY March 31, 2026 (2) | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | PRELIMINARY March 31, 2026 (2) | March 31, 2025 | |||||||||||||||||||||||||||||||||||||
| Total revenues (Line 9) | $5,000 | $3,002 | $2,293 | $1,455 | $4,809 | $5,000 | $4,809 | |||||||||||||||||||||||||||||||||||||
Total benefits and expenses before dividends to policyholders (Line 28) | $3,600 | $2,919 | $3,679 | $2,360 | $3,584 | $3,600 | $3,584 | |||||||||||||||||||||||||||||||||||||
COMBINED NET INCOME (LOSS) (1), (3) | ||||||||||||||||||||||||||||||||||||||||||||
Gain (loss) from operations net of taxes and dividends to policyholders (Line 33) | $1,400 | $122 | $(1,333) | $(921) | $1,225 | $1,400 | $1,225 | |||||||||||||||||||||||||||||||||||||
Net realized capital gains (losses), net of taxes and certain transfers to interest maintenance reserve (Line 34) | (500) | (434) | 599 | (643) | (784) | (500) | (784) | |||||||||||||||||||||||||||||||||||||
Net income (loss) (Line 35) | $900 | $(312) | $(734) | $(1,564) | $441 | $900 | $441 | |||||||||||||||||||||||||||||||||||||
COMBINED CHANGE IN NET UNREALIZED GAIN (LOSS) (3), (4) | ||||||||||||||||||||||||||||||||||||||||||||
| Change in net unrealized gain (loss) recorded in surplus, net of tax (Lines 38, 39, 46 & 47) | $(1,000) | $133 | $508 | $1,414 | $(119) | $(1,000) | $(119) | |||||||||||||||||||||||||||||||||||||
| (1) Combined statutory results are for Brighthouse Life Insurance Company, Brighthouse Life Insurance Company of NY and New England Life Insurance Company. | ||||||||||||||||||||||||||||||||||||||||||||
(2) Reflects preliminary statutory results for the three months ended March 31, 2026. | ||||||||||||||||||||||||||||||||||||||||||||
(3) Combined net income (loss) and combined change in net unrealized gain (loss) should be considered in aggregate for a more complete understanding of our business, including realized and unrealized gains (losses) associated with our variable annuities and Shield hedges and other equity risk management strategies. | ||||||||||||||||||||||||||||||||||||||||||||
(4) Combined statutory results are for Brighthouse Life Insurance Company and New England Life Insurance Company. | ||||||||||||||||||||||||||||||||||||||||||||
| Financial Supplement | 21 | |||||||||||||
Statutory Balance Sheet and Surplus Information (Unaudited, in millions)
| As of | ||||||||||||||||||||||||||||||||||||||
| COMBINED ASSETS, LIABILITIES, AND CAPITAL AND SURPLUS (1) | PRELIMINARY March 31, 2026 (2) | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | |||||||||||||||||||||||||||||||||
Total assets (Line 28) | $197,000 | $201,005 | $203,382 | $202,943 | $193,978 | |||||||||||||||||||||||||||||||||
| Total liabilities (Line 28) | $193,500 | $197,152 | $199,492 | $198,900 | $189,859 | |||||||||||||||||||||||||||||||||
Total capital and surplus (Line 38) | $3,500 | $3,853 | $3,890 | $4,043 | $4,119 | |||||||||||||||||||||||||||||||||
COMBINED TAC AND RBC RATIO (1), (3) | ||||||||||||||||||||||||||||||||||||||
Combined total adjusted capital | $5,000 | $5,328 | $5,400 | $5,560 | $5,549 | |||||||||||||||||||||||||||||||||
Combined risk-based capital ratio (4) | 430%-450% | 456% | 435%-455% | 405%-425% | 420%-440% | |||||||||||||||||||||||||||||||||
DIVIDENDS PAID TO HOLDING COMPANY (1), (3) | ||||||||||||||||||||||||||||||||||||||
| Total dividends paid | $— | $— | $— | $— | $— | |||||||||||||||||||||||||||||||||
| (1) Combined statutory results are for Brighthouse Life Insurance Company and New England Life Insurance Company. | ||||||||||||||||||||||||||||||||||||||
(2) Reflects preliminary statutory results as of March 31, 2026. | ||||||||||||||||||||||||||||||||||||||
(3) See definitions for Non-GAAP and Other Financial Disclosures in the Appendix beginning on page A-2. | ||||||||||||||||||||||||||||||||||||||
(4) The RBC ratio is reported as a preliminary range for all periods, except those ended December 31. | ||||||||||||||||||||||||||||||||||||||
Appendix
| Financial Supplement | A-1 | |||||||||||||
Note Regarding Forward-Looking Statements
This financial supplement, 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, 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; 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; 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; 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.
| Financial Supplement | A-2 | |||||||||||||
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-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:
| Non-GAAP financial measures: | Most directly comparable GAAP financial measures: | |||||||||||||
| (i) | adjusted earnings | (i) | net income (loss) available to shareholders (1) | |||||||||||
| (ii) | adjusted earnings, less notable items | (ii) | net income (loss) available to shareholders (1) | |||||||||||
| (iii) | adjusted revenues | (iii) | revenues | |||||||||||
| (iv) | adjusted expenses | (iv) | expenses | |||||||||||
| (v) | adjusted earnings per common share | (v) | earnings per common share, diluted (1) | |||||||||||
| (vi) | adjusted earnings per common share, less notable items | (vi) | earnings per common share, diluted (1) | |||||||||||
| (vii) | adjusted return on common equity | (vii) | return on common equity (2) | |||||||||||
| (viii) | adjusted return on common equity, less notable items | (viii) | return on common equity (2) | |||||||||||
| (ix) | adjusted net investment income | (ix) | net investment income | |||||||||||
(x) | adjusted net investment income yield | (x) | net investment income yield | |||||||||||
| __________________ | ||||||||||||||
(1) Brighthouse uses net income (loss) available to shareholders to refer to net income (loss) available to Brighthouse Financial, Inc.’s common shareholders, and earnings per common share, diluted to refer to net income (loss) available to shareholders per common share. | ||||||||||||||
(2) Brighthouse uses return on common equity to refer to return on Brighthouse Financial, Inc.’s common stockholders' equity. | ||||||||||||||
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.
Adjusted earnings reflect 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 adjustments to GAAP revenues and GAAP expenses used to calculate adjusted revenues and adjusted expenses, respectively.
| Financial Supplement | A-3 | |||||||||||||
Non-GAAP and Other Financial Disclosures (Cont.)
The following items are excluded from total revenues in calculating the adjusted revenues component of adjusted earnings:
•Net investment gains (losses);
•Investment gains (losses) on trading securities measured at estimated fair value through net investment income; and
•Net derivative gains (losses), excluding earned income and amortization of premium on derivatives that are hedges of investments or that are used to replicate certain investments, but do not qualify for hedge accounting treatment (“Investment Hedge Adjustments”).
The following items are excluded from total expenses in calculating the adjusted expenses component of adjusted earnings:
•Change in market risk benefits; and
•Change in fair value of the crediting rate on experience-rated contracts and market value adjustments on institutional group annuities that are economically offset by gains (losses) on the related trading securities (“Market Value Adjustments”).
The provision for income tax related to adjusted earnings is calculated using the statutory tax rate of 21%, net of impacts related to the dividends received deduction, tax credits and current period non-recurring items.
Consistent with GAAP guidance for segment reporting, adjusted earnings is also our GAAP measure of segment performance.
Adjusted Earnings per Common Share and Adjusted Return on Common Equity
Adjusted earnings per common share and adjusted return on common equity are measures used by management to evaluate the execution of our business strategy and align such strategy with our shareholders’ interests.
Adjusted earnings per common share is defined as adjusted earnings for the period divided by the weighted average number of fully diluted shares of common stock outstanding for the period. The weighted average common shares outstanding used to calculate adjusted earnings per share will differ from such shares used to calculate diluted net income (loss) available to shareholders per common share when the inclusion of dilutive shares has an anti-dilutive effect for one calculation but not for the other.
Adjusted return on common equity is defined as total annual adjusted earnings on a four quarter trailing basis, divided by the simple average of the most recent five quarters of total Brighthouse Financial, Inc.’s common stockholders’ equity, excluding AOCI.
Adjusted Net Investment Income
Adjusted net investment income is used by management to measure our performance, and we believe it enhances the understanding of our investment portfolio results. Adjusted net investment income represents GAAP net investment income plus Investment Hedge Adjustments less investment gains (losses) on trading securities.
| Financial Supplement | A-4 | |||||||||||||
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. Adjusted net investment income yield represents adjusted net investment income as a percentage of average quarterly asset carrying values. Asset carrying values exclude unrealized gains (losses), collateral received in connection with our securities lending program, freestanding derivative assets and collateral received from derivative counterparties. Investment fee and expense yields are calculated as a percentage of average quarterly asset estimated fair values. Asset estimated fair values exclude collateral received in connection with our securities lending program, freestanding derivative assets and collateral received from derivative counterparties.
Other Financial Disclosures
Corporate Expenses
Corporate expenses includes functional department expenses, public company expenses, certain investment expenses, retirement funding and incentive compensation.
Notable Items
Certain of the non-GAAP measures described above may be presented further adjusted to exclude notable items. Notable items reflect the unfavorable (favorable) after-tax impact on our results of certain unanticipated items and events, as well as certain items and events that were anticipated. The presentation of notable items and non-GAAP measures, less notable items is intended to help investors better understand our results and to evaluate and forecast those results.
Book Value per Common Share and Book Value per Common Share, excluding AOCI
Brighthouse uses the term “book value” to refer to “Brighthouse Financial, Inc.’s common stockholders’ equity, including AOCI.” Book value per common share is defined as ending Brighthouse Financial, Inc.’s common stockholders’ equity, including AOCI, divided by ending common shares outstanding. Book value per common share, excluding AOCI, is defined as ending Brighthouse Financial, Inc.’s common stockholders’ equity, excluding AOCI, divided by ending common shares outstanding.
Holding Company
Holding company means, collectively, Brighthouse Financial, Inc., Brighthouse Holdings, LLC, and Brighthouse Services, LLC.
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 cash equivalents, short-term investments and publicly-traded securities, excluding assets that are pledged or otherwise committed. Assets pledged or otherwise committed include assets held in trust.
Total Adjusted Capital
Total adjusted capital primarily consists of statutory capital and surplus, as well as the statutory asset valuation reserve. When referred to as “combined,” represents that of our insurance subsidiaries as a whole.
| Financial Supplement | A-5 | |||||||||||||
Non-GAAP and Other Financial Disclosures (Cont.)
Other Financial Disclosures (cont.)
Sales
Life insurance sales consist of 100 percent of annualized new premium for term life, first-year paid premium for whole life, universal life, and variable universal life, and total paid premium for indexed universal life. We exclude company-sponsored internal exchanges, corporate-owned life insurance, bank-owned life insurance, and private placement variable universal life.
Annuity sales consist of 100 percent of direct statutory premiums, except for fixed index annuity sales, which represents 100 percent of gross sales on directly written business and the proportion of assumed gross sales under reinsurance agreements. Annuity sales exclude certain internal exchanges. These sales statistics do not correspond to revenues under GAAP, but are used as relevant measures of business activity.
Risk-Based Capital Ratio
The risk-based capital ratio is a method of measuring an insurance company’s capital, taking into consideration its relative size and risk profile, in order to ensure compliance with minimum regulatory capital requirements set by the National Association of Insurance Commissioners. When referred to as “combined,” represents that of our insurance subsidiaries as a whole. The reporting of our combined risk-based capital ratio is not intended for the purpose of ranking any insurance company or for use in connection with any marketing, advertising or promotional activities.
| Financial Supplement | A-6 | |||||||||||||
Acronyms
| AOCI | Accumulated other comprehensive income (loss) | ||||
| DAC | Deferred policy acquisition costs | ||||
| FHLB | Federal Home Loan Bank | ||||
| GAAP | Accounting principles generally accepted in the United States of America | ||||
| GMDB | Guaranteed minimum death benefits | ||||
| GMIB | Guaranteed minimum income benefits | ||||
| GMWB | Guaranteed minimum withdrawal benefits | ||||
| ICOLI | Insurance company-owned life insurance | ||||
| NDGL | Net derivative gains (losses) | ||||
| NIGL | Net investment gains (losses) | ||||
| RBC | Risk-based capital | ||||
| TAC | Total adjusted capital | ||||
| ULSG | Universal life insurance with secondary guarantees | ||||
| VA | Variable annuity | ||||
| VOBA | Value of business acquired | ||||
| Financial Supplement | A-7 | |||||||||||||
Reconciliation of Net Income (Loss) Available to Shareholders to Adjusted Earnings (Loss) and Adjusted Earnings, Less Notable Items, and Reconciliation of Net Income (Loss) Available to Shareholders per Common Share to Adjusted Earnings (Loss) per Common Share and Adjusted Earnings, Less Notable Items per Common Share (Unaudited, in millions except per share data)
| For the Three Months Ended | For the Three Months Ended | |||||||||||||||||||||||||||||||||||||||||||
| ADJUSTED EARNINGS, LESS NOTABLE ITEMS (1) | March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | March 31, 2026 | March 31, 2025 | |||||||||||||||||||||||||||||||||||||
| Net income (loss) available to shareholders | $(792) | $112 | $453 | $60 | $(294) | $(792) | $(294) | |||||||||||||||||||||||||||||||||||||
| Less: Net investment gains (losses) | (52) | (23) | 48 | (39) | (83) | (52) | (83) | |||||||||||||||||||||||||||||||||||||
| Less: Investment gains (losses) on trading securities | (10) | (7) | 7 | (6) | 6 | (10) | 6 | |||||||||||||||||||||||||||||||||||||
| Less: Net derivative gains (losses), excluding investment hedge adjustments | (509) | (455) | (410) | (1,238) | 311 | (509) | 311 | |||||||||||||||||||||||||||||||||||||
| Less: Change in market risk benefits | (748) | 349 | (289) | 1,101 | (893) | (748) | (893) | |||||||||||||||||||||||||||||||||||||
| Less: Market value adjustments | 13 | 6 | (10) | 6 | (10) | 13 | (10) | |||||||||||||||||||||||||||||||||||||
| Less: Provision for income tax (expense) benefit on reconciling adjustments | 275 | 28 | 137 | 38 | 140 | 275 | 140 | |||||||||||||||||||||||||||||||||||||
| Adjusted earnings (loss) | 239 | 214 | 970 | 198 | 235 | 239 | 235 | |||||||||||||||||||||||||||||||||||||
| Less: Notable items | (12) | (13) | 709 | — | (10) | (12) | (10) | |||||||||||||||||||||||||||||||||||||
| Adjusted earnings, less notable items | $251 | $227 | $261 | $198 | $245 | $251 | $245 | |||||||||||||||||||||||||||||||||||||
| ADJUSTED EARNINGS, LESS NOTABLE ITEMS PER COMMON SHARE (1), (2) | ||||||||||||||||||||||||||||||||||||||||||||
| Net income (loss) available to shareholders per common share | $(13.82) | $1.93 | $7.89 | $1.02 | $(5.04) | $(13.82) | $(5.04) | |||||||||||||||||||||||||||||||||||||
| Less: Net investment gains (losses) | (0.91) | (0.40) | 0.83 | (0.68) | (1.42) | (0.91) | (1.42) | |||||||||||||||||||||||||||||||||||||
| Less: Investment gains (losses) on trading securities | (0.17) | (0.12) | 0.12 | (0.10) | 0.10 | (0.17) | 0.10 | |||||||||||||||||||||||||||||||||||||
| Less: Net derivative gains (losses), excluding investment hedge adjustments | (8.88) | (7.87) | (7.13) | (21.44) | 5.34 | (8.88) | 5.34 | |||||||||||||||||||||||||||||||||||||
| Less: Change in market risk benefits | (13.05) | 6.04 | (5.02) | 19.07 | (15.33) | (13.05) | (15.33) | |||||||||||||||||||||||||||||||||||||
| Less: Market value adjustments | 0.23 | 0.10 | (0.17) | 0.10 | (0.17) | 0.23 | (0.17) | |||||||||||||||||||||||||||||||||||||
| Less: Provision for income tax (expense) benefit on reconciling adjustments | 4.80 | 0.48 | 2.38 | 0.66 | 2.40 | 4.80 | 2.40 | |||||||||||||||||||||||||||||||||||||
| Less: Impact of inclusion of dilutive shares | 0.03 | — | — | — | 0.03 | 0.03 | 0.03 | |||||||||||||||||||||||||||||||||||||
| Adjusted earnings (loss) per common share | 4.15 | 3.70 | 16.87 | 3.43 | 4.01 | 4.15 | 4.01 | |||||||||||||||||||||||||||||||||||||
Less: Notable items | (0.21) | (0.22) | 12.33 | — | (0.17) | (0.21) | (0.17) | |||||||||||||||||||||||||||||||||||||
| Adjusted earnings, less notable items per common share | $4.35 | $3.93 | $4.54 | $3.43 | $4.17 | $4.35 | $4.17 | |||||||||||||||||||||||||||||||||||||
(1) See definitions for Non-GAAP and Other Financial Disclosures in this Appendix. | ||||||||||||||||||||||||||||||||||||||||||||
| (2) Per share calculations are on a diluted basis and may not recalculate or foot due to rounding. For loss periods, dilutive shares were not included in the calculation as inclusion of such shares would have an anti-dilutive effect. | ||||||||||||||||||||||||||||||||||||||||||||
| Financial Supplement | A-8 | |||||||||||||
Reconciliation of Return on Common Equity to Adjusted Return on Common Equity, Excluding AOCI (Unaudited, dollars in millions)
| Four Quarters Cumulative Trailing Basis | ||||||||||||||||||||||||||||||||
ADJUSTED EARNINGS | March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | |||||||||||||||||||||||||||
| Net income (loss) available to shareholders | $(167) | $331 | $865 | $562 | $511 | |||||||||||||||||||||||||||
| Less: Net investment gains (losses) | (66) | (97) | (147) | (255) | (336) | |||||||||||||||||||||||||||
| Less: Investment gains (losses) on trading securities | (16) | — | 7 | — | 6 | |||||||||||||||||||||||||||
| Less: Net derivative gains (losses), excluding investment hedge adjustments | (2,612) | (1,792) | (2,332) | (2,021) | (1,454) | |||||||||||||||||||||||||||
| Less: Change in market risk benefits | 413 | 268 | 1,406 | 1,085 | 340 | |||||||||||||||||||||||||||
| Less: Market value adjustments | 15 | (8) | — | (1) | (1) | |||||||||||||||||||||||||||
| Less: Provision for income tax (expense) benefit on reconciling adjustments | 478 | 343 | 224 | 250 | 304 | |||||||||||||||||||||||||||
| Adjusted earnings | $1,621 | $1,617 | $1,707 | $1,504 | $1,652 | |||||||||||||||||||||||||||
| Five Quarters Average Stockholders' Equity Basis | ||||||||||||||||||||||||||||||||
BRIGHTHOUSE FINANCIAL, INC.’S COMMON STOCKHOLDERS’ EQUITY, EXCLUDING AOCI | March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | |||||||||||||||||||||||||||
| Brighthouse Financial, Inc.’s stockholders’ equity | $5,921 | $5,800 | $5,552 | $5,107 | $4,812 | |||||||||||||||||||||||||||
| Less: Preferred stock, net | 1,699 | 1,699 | 1,699 | 1,699 | 1,699 | |||||||||||||||||||||||||||
| Brighthouse Financial, Inc.’s common stockholders’ equity | 4,222 | 4,101 | 3,853 | 3,408 | 3,113 | |||||||||||||||||||||||||||
| Less: AOCI | (4,166) | (4,391) | (4,470) | (4,750) | (4,981) | |||||||||||||||||||||||||||
| Brighthouse Financial, Inc.’s common stockholders’ equity, excluding AOCI | $8,388 | $8,492 | $8,323 | $8,158 | $8,094 | |||||||||||||||||||||||||||
| Five Quarters Average Common Stockholders' Equity Basis | ||||||||||||||||||||||||||||||||
ADJUSTED RETURN ON COMMON EQUITY, EXCLUDING AOCI | March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | |||||||||||||||||||||||||||
| Return on common equity | (4.0)% | 8.1% | 22.5% | 16.5% | 16.4% | |||||||||||||||||||||||||||
| Return on AOCI | 4.0% | (7.5)% | (19.4)% | (11.8)% | (10.3)% | |||||||||||||||||||||||||||
| Return on common equity, excluding AOCI | (2.0)% | 3.9% | 10.4% | 6.9% | 6.3% | |||||||||||||||||||||||||||
| Less: Return on net investment gains (losses) | (0.8)% | (1.1)% | (1.8)% | (3.1)% | (4.2)% | |||||||||||||||||||||||||||
| Less: Return on investment gains (losses) on trading securities | (0.2)% | —% | 0.1% | —% | 0.1% | |||||||||||||||||||||||||||
| Less: Return on net derivative gains (losses), excluding investment hedge adjustments | (31.1)% | (21.1)% | (28.0)% | (24.8)% | (18.0)% | |||||||||||||||||||||||||||
| Less: Return on change in market risk benefits | 4.9% | 3.2% | 16.9% | 13.3% | 4.2% | |||||||||||||||||||||||||||
| Less: Return on market value adjustments | 0.2% | (0.1)% | —% | —% | —% | |||||||||||||||||||||||||||
| Less: Return on provision for income tax (expense) benefit on reconciling adjustments | 5.7% | 4.0% | 2.7% | 3.1% | 3.8% | |||||||||||||||||||||||||||
| Adjusted return on common equity, excluding AOCI | 19.3% | 19.0% | 20.5% | 18.4% | 20.4% | |||||||||||||||||||||||||||
| Financial Supplement | A-9 | |||||||||||||
Reconciliation of Total Revenues to Adjusted Revenues and Reconciliation of Total Expenses to Adjusted Expenses (Unaudited, in millions)
| For the Three Months Ended | For the Three Months Ended | |||||||||||||||||||||||||||||||||||||||||||
| March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | March 31, 2026 | March 31, 2025 | ||||||||||||||||||||||||||||||||||||||
| Total revenues | $1,527 | $1,689 | $1,816 | $871 | $2,390 | $1,527 | $2,390 | |||||||||||||||||||||||||||||||||||||
| Less: Net investment gains (losses) | (52) | (23) | 48 | (39) | (83) | (52) | (83) | |||||||||||||||||||||||||||||||||||||
| Less: Investment gains (losses) on trading securities | (10) | (7) | 7 | (6) | 6 | (10) | 6 | |||||||||||||||||||||||||||||||||||||
| Less: Net derivative gains (losses) | (509) | (456) | (410) | (1,237) | 311 | (509) | 311 | |||||||||||||||||||||||||||||||||||||
| Less: Investment hedge adjustments | — | 1 | — | (1) | — | — | — | |||||||||||||||||||||||||||||||||||||
| Total adjusted revenues | $2,098 | $2,174 | $2,171 | $2,154 | $2,156 | $2,098 | $2,156 | |||||||||||||||||||||||||||||||||||||
| Total expenses | $2,513 | $1,539 | $1,231 | $778 | $2,744 | $2,513 | $2,744 | |||||||||||||||||||||||||||||||||||||
| Less: Change in market risk benefits | 748 | (349) | 289 | (1,101) | 893 | 748 | 893 | |||||||||||||||||||||||||||||||||||||
| Less: Market value adjustments | (13) | (6) | 10 | (6) | 10 | (13) | 10 | |||||||||||||||||||||||||||||||||||||
| Total adjusted expenses | $1,778 | $1,894 | $932 | $1,885 | $1,841 | $1,778 | $1,841 | |||||||||||||||||||||||||||||||||||||
| Financial Supplement | A-10 | |||||||||||||
Investment Reconciliation Details (Unaudited, dollars in millions)
| For the Three Months Ended | For the Three Months Ended | |||||||||||||||||||||||||||||||||||||||||||
| NET INVESTMENT GAINS (LOSSES) | March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | March 31, 2026 | March 31, 2025 | |||||||||||||||||||||||||||||||||||||
| Investment portfolio gains (losses) | $(26) | $(14) | $52 | $(5) | $(31) | $(26) | $(31) | |||||||||||||||||||||||||||||||||||||
| Investment portfolio credit loss (provision) release and (writedowns) | (26) | (9) | (4) | (34) | (52) | (26) | (52) | |||||||||||||||||||||||||||||||||||||
| Net investment gains (losses) | $(52) | $(23) | $48 | $(39) | $(83) | $(52) | $(83) | |||||||||||||||||||||||||||||||||||||
| For the Three Months Ended | ||||||||||||||||||||||||||||||||
| ADJUSTED NET INVESTMENT INCOME YIELD (1) | March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | |||||||||||||||||||||||||||
| Investment income yield | 4.39% | 4.60% | 4.54% | 4.41% | 4.39% | |||||||||||||||||||||||||||
| Investment fees and expenses | (0.15)% | (0.16)% | (0.14)% | (0.13)% | (0.14)% | |||||||||||||||||||||||||||
| Adjusted net investment income yield | 4.24% | 4.44% | 4.40% | 4.28% | 4.25% | |||||||||||||||||||||||||||
| (1) See definitions for Non-GAAP and Other Financial Disclosures in this Appendix. | ||||||||||||||||||||||||||||||||