Brighthouse Financial (BHF) investor relations material

Executive summary

• Reported a net loss available to shareholders of $792 million for Q1 2026, compared to a net loss of $294 million in Q1 2025, primarily due to unfavorable changes in variable annuity and Shield hedges and net investment losses on fixed maturity securities sales, partially offset by positive adjusted earnings.

• Adjusted earnings were $251 million, or $4.35 per diluted share, up from $245 million, or $4.17 per diluted share, in Q1 2025, reflecting higher net investment spread and lower expenses, offset by lower fee income and higher amortization of deferred acquisition costs.

• The company is in the process of being acquired by Aquarian Holdings for $70.00 per share in an all-cash transaction valued at $4.1 billion, with closing expected in 2026, subject to regulatory approvals.

• Annuity sales reached $2.2 billion, primarily driven by Shield Level Annuities; life sales totaled $32 million, mainly from SmartCare.

Financial highlights

• Total revenues for Q1 2026 were $1.53 billion, down from $2.39 billion in Q1 2025, driven by lower net investment income and significant net derivative losses.

• Book value at quarter-end was $3.9 billion ($67.27 per share); book value excluding AOCI was $8.0 billion ($139.63 per share).

• Statutory combined total adjusted capital was $5.0 billion, down from $5.5 billion a year ago.

• Estimated combined RBC ratio between 430% and 450%, at the upper end of the target range.

• Net investment income was $1.26 billion, down from $1.30 billion year-over-year.

Segment performance

• Annuities segment adjusted earnings were $324 million, up from $314 million in Q1 2025, driven by higher net investment spread and lower expenses, partially offset by lower fee income and higher DAC amortization.

• Life segment reported an adjusted loss of $6 million, down from $9 million in adjusted earnings, due to higher claims and lower investment spread.

• Run-off segment adjusted loss improved to $48 million from $64 million, reflecting lower claims and expenses.

• Corporate & Other segment adjusted loss increased to $31 million from $24 million, mainly due to lower investment spread.