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Brighthouse Financial Q2 Earnings Miss Estimates on Lower Premiums
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Key Takeaways
{\"0\":\"Brighthouse Financial Q2 earnings fell 38.4% year over year, missing estimates by 27%.\",\"1\":\"Revenues slid 2.9% on weaker policy fees and investment income, with premiums down 8.3.\",\"2\":\"Total expenses dropped nearly 45%, partly offsetting pressure from reduced revenue streams.\"}
Brighthouse Financial, Inc. (BHF - Free Report) reported second-quarter 2025 adjusted earnings of $3.43 per share, which missed the Zacks Consensus Estimate by 27%. The bottom line declined 38.4% year over year.
The lower-than-expected results for the quarter were due to a combination of reduced premiums and lower net investment income, partially offset by a decline in total expenses.
Behind the Headlines
Total operating revenues of $2.2 billion decreased 2.9% year over year, due to lower universal life and investment-type product policy fees and net investment income. The top line missed the consensus estimate by 2.1%.
Brighthouse Financial, Inc. Price, Consensus and EPS Surprise
Premiums of $166 million decreased 8.3% year over year. The Zacks consensus Estimate was $200 million, and our estimate was $248.8 million.
Adjusted net investment income was $1.3 billion in the quarter under review, down 1.8% year over year, primarily due to lower income from alternative investments. The investment income yield was 4.28%.
Total expenses were $778 million, which dropped nearly 45% from $1.4 billion year over year. Our estimate was $1.7 billion. Corporate expenses, pretax, were $202 million, inching up 1% year over year.
Quarterly Segmental Update of BHF
Annuities recorded an adjusted operating income of $332 million, which remained flat year over year. Annuity sales increased 8.4% year over year to $2.6 billion, mainly supported by stronger fixed annuity sales, partially offset by a decline in Shield Level Annuity sales.
Life’s adjusted operating loss was $26 million against earnings of $42 million in the year-ago reported quarter. It reflects a lower underwriting margin and lower net investment income. Life insurance sales increased 17.8% quarter over quarter to $33 million, reflecting growth of the company's life insurance suite.
Adjusted operating loss at Run-off was $83 million, wider than the year-ago loss of $30 million. It reflects reduced net investment income and a weaker underwriting margin, partially offset by decreased expenses.
Corporate & Other recorded an adjusted operating loss of $25 million against earnings of $2 million in the year-ago quarter, reflecting a decline in net investment income and a reduced tax benefit.
Financial Update of BHF
Cash and cash equivalents for the reported quarter were $5.5 billion, up 24.7% year over year.
In the quarter under review, shareholders’ equity was $5.7 billion, which increased 37% year over year.
Book value per share, excluding accumulated other comprehensive income, was $144.09 as of June 30, 2025, up 12.3% year over year.
Statutory combined total adjusted capital was $5.6 billion as of June 30, 2025, up 3.7% year over year.
As of June 30, 2025, the estimated combined risk-based capital ratio was in the range of 405-425%%.
Brighthouse Financial’s Share Buyback Program
Brighthouse Financial bought back shares worth $43 million in the second quarter of 2025, taking the year-to-date tally to $102 million.
Here are three stocks in the Life Insurance space that have already reported earnings for this quarter: Reinsurance Group of America, Incorporated (RGA - Free Report) , Voya Financial, Inc. (VOYA - Free Report) , Lincoln National Corporation (LNC - Free Report)
Reinsurance Group of America reported second-quarter 2025 adjusted operating earnings of $4.72 per share, which missed the Zacks Consensus Estimate by 15.4%. Though it witnesseda solid performance in Canada, Europe, the Middle East and Africa (EMEA) and Asia/Pacific segments, it was offset by weakness in the U.S. and Latin America segments.Reinsurance Group’s operating revenues of $5.6 billion improved 9.6% year over year, driven by higher net premiums, investment income, net of related expenses and other revenues.
Voya Financial reported second-quarter 2025 adjusted operating earnings of $2.4 per share, which beat the Zacks Consensus Estimate by 14.8%, driven by accretion from the OneAmerica business, favorable capital markets, and net inflows across the operations.Voya’sadjusted operating revenues amounted to $356 million, up 9.8% year over year.
Lincoln National reported second-quarter adjusted earnings per share of $2.36, which surpassed the Zacks Consensus Estimate by 23.6%, thanks to higher insurance premiums, strong annuity deposits and solid Group Protection performance.Lincoln’s adjusted operating revenues grew 4.4% year over year to $4.7 billion.
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Brighthouse Financial Q2 Earnings Miss Estimates on Lower Premiums
Key Takeaways
Brighthouse Financial, Inc. (BHF - Free Report) reported second-quarter 2025 adjusted earnings of $3.43 per share, which missed the Zacks Consensus Estimate by 27%. The bottom line declined 38.4% year over year.
The lower-than-expected results for the quarter were due to a combination of reduced premiums and lower net investment income, partially offset by a decline in total expenses.
Behind the Headlines
Total operating revenues of $2.2 billion decreased 2.9% year over year, due to lower universal life and investment-type product policy fees and net investment income. The top line missed the consensus estimate by 2.1%.
Brighthouse Financial, Inc. Price, Consensus and EPS Surprise
Brighthouse Financial, Inc. price-consensus-eps-surprise-chart | Brighthouse Financial, Inc. Quote
Premiums of $166 million decreased 8.3% year over year. The Zacks consensus Estimate was $200 million, and our estimate was $248.8 million.
Adjusted net investment income was $1.3 billion in the quarter under review, down 1.8% year over year, primarily due to lower income from alternative investments. The investment income yield was 4.28%.
Total expenses were $778 million, which dropped nearly 45% from $1.4 billion year over year. Our estimate was $1.7 billion. Corporate expenses, pretax, were $202 million, inching up 1% year over year.
Quarterly Segmental Update of BHF
Annuities recorded an adjusted operating income of $332 million, which remained flat year over year. Annuity sales increased 8.4% year over year to $2.6 billion, mainly supported by stronger fixed annuity sales, partially offset by a decline in Shield Level Annuity sales.
Life’s adjusted operating loss was $26 million against earnings of $42 million in the year-ago reported quarter. It reflects a lower underwriting margin and lower net investment income. Life insurance sales increased 17.8% quarter over quarter to $33 million, reflecting growth of the company's life insurance suite.
Adjusted operating loss at Run-off was $83 million, wider than the year-ago loss of $30 million. It reflects reduced net investment income and a weaker underwriting margin, partially offset by decreased expenses.
Corporate & Other recorded an adjusted operating loss of $25 million against earnings of $2 million in the year-ago quarter, reflecting a decline in net investment income and a reduced tax benefit.
Financial Update of BHF
Cash and cash equivalents for the reported quarter were $5.5 billion, up 24.7% year over year.
In the quarter under review, shareholders’ equity was $5.7 billion, which increased 37% year over year.
Book value per share, excluding accumulated other comprehensive income, was $144.09 as of June 30, 2025, up 12.3% year over year.
Statutory combined total adjusted capital was $5.6 billion as of June 30, 2025, up 3.7% year over year.
As of June 30, 2025, the estimated combined risk-based capital ratio was in the range of 405-425%%.
Brighthouse Financial’s Share Buyback Program
Brighthouse Financial bought back shares worth $43 million in the second quarter of 2025, taking the year-to-date tally to $102 million.
Zacks Rank
Brighthouse Financial currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Life Insurers
Here are three stocks in the Life Insurance space that have already reported earnings for this quarter: Reinsurance Group of America, Incorporated (RGA - Free Report) , Voya Financial, Inc. (VOYA - Free Report) , Lincoln National Corporation (LNC - Free Report)
Reinsurance Group of America reported second-quarter 2025 adjusted operating earnings of $4.72 per share, which missed the Zacks Consensus Estimate by 15.4%. Though it witnesseda solid performance in Canada, Europe, the Middle East and Africa (EMEA) and Asia/Pacific segments, it was offset by weakness in the U.S. and Latin America segments.Reinsurance Group’s operating revenues of $5.6 billion improved 9.6% year over year, driven by higher net premiums, investment income, net of related expenses and other revenues.
Voya Financial reported second-quarter 2025 adjusted operating earnings of $2.4 per share, which beat the Zacks Consensus Estimate by 14.8%, driven by accretion from the OneAmerica business, favorable capital markets, and net inflows across the operations.Voya’sadjusted operating revenues amounted to $356 million, up 9.8% year over year.
Lincoln National reported second-quarter adjusted earnings per share of $2.36, which surpassed the Zacks Consensus Estimate by 23.6%, thanks to higher insurance premiums, strong annuity deposits and solid Group Protection performance.Lincoln’s adjusted operating revenues grew 4.4% year over year to $4.7 billion.