Brighthouse Financial, Inc. Announces Fourth Quarter and Full-Year 2025 Earnings

Brighthouse Financial, Inc. (Nasdaq: BHF), a major provider of annuities and life insurance, released its financial results for the fourth quarter and full year ended December 31, 2025. The announcement contains several key figures and developments that investors and shareholders should pay close attention to, as some may be price sensitive and have the potential to impact the company’s share value.

Key Financial Highlights

• Q4 2025 Net Income: Net income available to shareholders was \$112 million for the quarter, or \$1.93 per diluted share. For the full year, net income reached \$453 million or \$7.89 per diluted share.
• Q4 2025 Adjusted Earnings: Adjusted earnings in Q4 were \$214 million (\$3.70 per share), while adjusted earnings for the full year were \$304 million (\$5.07 per share).
• Q4 2025 Adjusted Earnings, Less Notable Items: Adjusted earnings excluding notable items totaled \$227 million (\$3.93 per share), with the full year at \$352 million (\$5.88 per share).
• Net Investment Income: Q4 net investment income was reported at \$1,328 million and adjusted net investment income at \$1,334 million, reflecting stable investment performance.
• Book Value per Share: Book value per common share at December 31, 2025, was \$153.89, with book value excluding AOCI at \$145.63.

Critical Developments and Shareholder Impact

• Emerging Trends in Earnings:
  • Adjusted earnings, excluding notable items, declined quarter-over-quarter due to a lower underwriting margin, lower net investment income, and higher expenses. On a sequential basis, the decline was primarily attributed to lower net investment income. These changes signal potential earnings pressure and may impact investor sentiment.
  • The company continues to face headwinds from market volatility, affecting both net and adjusted earnings. Investors should monitor ongoing market conditions and their potential impact on Brighthouse Financial’s earnings trajectory.
• Investment Portfolio & Capital Position:
  • The investment portfolio remained robust, with total investments at \$81.5 billion as of December 31, 2025, up from \$80.1 billion at September 30, 2025.
  • Adjusted net investment income yield was 4.44% for the quarter, compared to 4.40% in the prior quarter and 4.51% a year ago, reflecting stable income generation but also highlighting competitive pressures and low interest rates.
• Important Non-GAAP Disclosures:
  • Brighthouse Financial uses several non-GAAP measures, including adjusted earnings, adjusted revenues, and adjusted expenses. These metrics are intended to strip out the impact of market volatility and notable items to provide a clearer view of business fundamentals.
  • Notable items are events or transactions that are unusual or non-recurring. Excluding these, adjusted earnings present a more normalized picture of ongoing profitability.
• Forward-Looking Risks and Uncertainties:
  • The company provided extensive cautionary language regarding forward-looking statements, highlighting risks from market and credit conditions, regulatory changes, distribution relationships, climate change, public health crises, and other potential disruptions.
  • Management noted that future results are subject to a range of uncertainties, and any material adverse developments could significantly affect share value.

Segment and Operational Metrics

• Segment Performance:
  • Detailed segment information, including annuities, life, and run-off business, is provided in the financial supplement. Investors are encouraged to review segment statements for deeper insights into drivers of profitability and risk.
• Corporate Expenses:
  • Corporate expenses include public company costs, department expenses, investment expenses, retirement funding, and incentive compensation, all of which are important for understanding overhead trends and their impact on earnings.

Potential Price-Sensitive Information

• The shift in adjusted earnings and net income, particularly the decline in earnings excluding notable items, could be viewed negatively by the market and may affect share valuation.
• The company’s ability to manage investment income and expenses in a volatile environment remains a key factor for shareholder value.
• Forward-looking risk factors and management’s disclosures about ongoing uncertainties may influence investor expectations and stock price volatility.

Additional Information for Investors

• Brighthouse Financial’s full earnings press release and the financial supplement are available on the company’s investor relations website. These contain detailed reconciliations of non-GAAP to GAAP measures, segment breakdowns, and additional disclosures.
• Shareholders and analysts should review the company’s SEC filings, especially the Annual Report on Form 10-K and quarterly filings, for a comprehensive understanding of risks and opportunities.

Disclaimer: This article is provided for informational purposes only and does not constitute investment advice or a recommendation to buy or sell any securities. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially. Readers should consult the company’s official filings and their own financial advisers before making investment decisions.

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