Brighthouse Financial (BHF) Q2 2024 earnings summary

Executive summary

• Net income available to shareholders was $9 million ($0.12 per share) in Q2 2024, compared to a net loss of $200 million in Q2 2023, with adjusted earnings rising to $346 million ($5.57 per share) from $271 million year-over-year.

• Record life sales in the first half of 2024, up 19% year-over-year; annuity sales were flat compared to 2023, with record Shield Level Annuity sales exceeding $2 billion in Q2.

• Holding company liquid assets totaled $1.2 billion at quarter-end, with statutory combined total adjusted capital of $5.4 billion, down from $6 billion at March 31.

• Repurchased $151 million of common stock year-to-date through August 2, 2024, including $64 million in Q2.

• Preliminary statutory results were disappointing due to a decline in the RBC ratio to 380%-400%, below the 400%-450% target range in normal markets.

Financial highlights

• Q2 2024 total revenues were $1.43 billion, up from $263 million in Q2 2023, reflecting improved investment income and lower derivative losses.

• Net investment income was $1.31 billion in Q2 2024, with an adjusted net investment income yield of 4.39%.

• EPS for Q2 2024 was $0.12, compared to $(3.01) in Q2 2023.

• Book value excluding AOCI was $7.9 billion ($128.36 per share) at quarter-end.

• Year-to-date through August 2, $151 million of common stock was repurchased.

Outlook and guidance

• Expect to restore the RBC ratio to the 400%-450% target range by year-end 2024, with multiple capital initiatives, including reinsurance, underway to improve capital efficiency within 6–12 months.

• Anticipate full-year 2024 corporate expenses to be lower than 2023, despite expected increases in the second half due to seasonality.

• Management remains confident in strong capitalization and liquidity position.

• Expect uneven inflows from LifePath Paycheck, with limited activity in Q3 and more in Q4.