Brighthouse Financial (BHF) Q4 2024 earnings summary

Executive summary

• Record Shield Level Annuities sales reached $7.7B, up 12% YoY, and life insurance sales hit $120M, up 18% YoY, with total annuity sales of $10B in 2024.

• Entered the worksite channel with BlackRock's LifePath Paycheck, now live in six employer plans with $16B AUM.

• Corporate expenses decreased by over 7% year-over-year, reflecting ongoing expense discipline.

• Net income available to shareholders for Q4 2024 was $646M ($10.79 per share), reversing a $942M loss in Q4 2023.

• Repurchased $250M of common stock in 2024, reducing shares outstanding by 8%; an additional $25M repurchased through February 7, 2025.

Financial highlights

• Q4 2024 adjusted earnings, less notable items, were $352M ($5.88 per share), up from $189M ($2.92 per share) in Q4 2023.

• Adjusted Q4 earnings were $304M, including a $48M unfavorable notable item; excluding this, adjusted earnings were $352M.

• Book value at Q4 2024 was $3.3B ($55.60 per share); book value excluding AOCI was $8.5B ($145.63 per share).

• Net investment income for Q4 2024 was $1,373M; adjusted net investment income yield was 4.51%.

• Statutory combined total adjusted capital was ~$5.4B; estimated combined RBC ratio was ~400%.

Outlook and guidance

• Combined RBC ratio expected to remain stable over the next few years without further holding company support, assuming normal markets.

• Financial plan contemplates taking dividends from operating companies after 2024.

• Management expects continued volatility in net income due to differences between hedge targets and GAAP reserves.

• Focus remains on executing capital-focused initiatives and maintaining expense discipline in 2025.

• Strategic focus remains on capital management, cost control, and product innovation.