Yahoo Finance

• Total Annuity Sales: $10 billion in 2024.

• Shield Level Annuities Sales: $7.7 billion, a 12% increase from 2023.

• Life Insurance Sales: $120 million, an 18% increase over 2023.

• Corporate Expenses: Down over 7% compared to 2023.

• Combined RBC Ratio: Approximately 400% as of December 31, 2024.

• Liquid Assets at Holding Company: $1.1 billion as of December 31, 2024; $1 billion pro forma after capital contribution.

• Common Stock Repurchase: $250 million in 2024, including $60 million in Q4.

• Adjusted Earnings Q4 2024: $304 million; $352 million excluding notable items.

• Alternative Investment Income: 2.6% in Q4, at the upper end of the 9% to 11% annual return expectation.

• Adjusted Earnings by Segment: Annuity: $327 million; Life: $52 million; Run-off: Loss of $27 million; Corporate and Other: Zero adjusted earnings.

• Warning! GuruFocus has detected 3 Warning Sign with BHF.

Release Date: February 12, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Brighthouse Financial Inc (NASDAQ:BHF) reported $10 billion in total annuity sales for 2024, with record sales of $7.7 billion in their flagship Shield Level annuities product suite, marking a 12% increase from 2023.

• The company successfully launched BlackRock's LifePath Paycheck solution in defined contribution plans, receiving initial deposits and expanding their reach in the worksite channel.

• BHF achieved an 18% increase in life insurance sales, totaling $120 million for the year, and introduced enhancements to their SmartCare product suite.

• Corporate expenses were reduced by over 7% compared to the previous year, reflecting strong expense discipline.

• The company returned $250 million to shareholders through stock repurchases in 2024, reducing the number of shares outstanding by over 50% since 2018.

Negative Points

• Brighthouse Financial Inc (NASDAQ:BHF) faced challenges with statutory results, which were disappointing and impacted by increased complexity in managing their variable annuity and Shield business.

• The company's estimated combined RBC ratio was at the low end of their target range, requiring a $100 million capital contribution to Brighthouse Life Insurance Company.

• Interest rate increases and yield curve steepening negatively impacted annuity statutory results, contributing to a $300 million decline in total adjusted capital in the fourth quarter.

• A $200 million increase in asset adequacy testing reserves was required due to legacy fixed annuity blocks, affecting statutory results.

• The company acknowledged the complexity of their business model, particularly in managing the hedging strategy for their legacy variable annuity and Shield products.