In This Article:
Brighthouse Financial BHF reported fourth-quarter 2024 adjusted net income of $5.88 per share, which missed the Zacks Consensus Estimate by 32.4%. The bottom line increased 101.4% year over year. The results reflected lower expenses.
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Behind the Headlines
Total operating revenues of $2.3 billion increased 62.4% year over year, driven by higher net investment income and other income. The top line beat the consensus mark by 1.9%.
Premiums of $207 million decreased 8.4% year over year.
Brighthouse Financial, Inc. Price, Consensus and EPS Surprise
Brighthouse Financial, Inc. price-consensus-eps-surprise-chart | Brighthouse Financial, Inc. Quote
Adjusted net investment income was $1.4 billion in the quarter under review, up 12.2% year over year, primarily driven by asset growth. The adjusted investment income yield was 4.51%.
Total expenses were $371 million, down 85.6% year over year, attributable to favorable change in market risk benefits.
Corporate expenses, pretax, were $210 million, down 13.9% year over year.
Quarterly Segmental Update
Annuities recorded an adjusted operating income of $279 million, up 13.9% year over year on higher fees and higher net investment income. Annuity sales decreased 18.3% to $2.5 billion due to lower sales of fixed deferred annuities, partially offset by record sales of Shield Level Annuity.
Annuity sales were $10 billion in 2024, driven by record sales of Shield Level Annuities.
Life’s adjusted operating income was $52 million, up 13-fold year over year on higher underwriting margin and higher net investment income. Life insurance sales increased 18.9% to $33 million.
Life sales were $120 million in 2024, up 18% year over year, driven by sales of Brighthouse SmartCare.
Adjusted operating income at Run-off was $27 million against the year-ago loss of $50 million due to higher net investment income and lower expenses, partially offset by a lower underwriting margin.
Corporate & Other broke even in the quarter versus a loss of $22 million incurred in the year-ago quarter. The results were driven by a higher tax benefit and lower expenses.
Financial Update
Cash and cash equivalents were $5 billion, up 31% year over year.
Shareholders’ equity of $5 billion at the end of 2024 increased 0.3% year over year.
Book value per share, excluding accumulated other comprehensive income, was $145.63 as of Dec. 31, 2024, up 8.9% year over year.
Statutory combined total adjusted capital was $5.4 billion as of Sept. 30, 2024, down 14.3% year over year.
As of Dec. 31, 2024, the estimated combined risk-based capital ratio was 400%.