Brighthouse Financial ((BHF)) has held its Q2 earnings call. Read on for the main highlights of the call.
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Brighthouse Financial’s recent earnings call painted a mixed picture of the company’s performance. While there was notable growth in sales and a robust capital and liquidity position, the company faced headwinds with lower adjusted earnings and a decline in the combined RBC ratio. Challenges were further compounded by a drop in alternative investment income and adverse non-VA results.
Strong Annuity and Life Insurance Sales
Brighthouse Financial reported impressive sales figures in its annuity and life insurance segments. Total annuity sales reached $2.6 billion in Q2 2025, marking a 16% sequential increase and an 8% rise compared to Q2 2024. Life insurance sales also hit a record year-to-date of $69 million, a 21% increase from the same period in 2024, highlighting the company’s strong market presence.
Positive Capital and Liquidity Position
The company maintained a solid liquidity position, with liquid assets at the holding company exceeding $900 million as of June 30, 2025. This strong capital base underscores Brighthouse Financial’s ability to navigate market fluctuations and invest in growth opportunities.
Capital Return to Shareholders
Brighthouse Financial continued its commitment to returning capital to shareholders, repurchasing $43 million of common stock in Q2. This brings the year-to-date total to $102 million, and since 2018, the company has repurchased over $2.6 billion in common stock, representing 52% of outstanding shares.
Lower Adjusted Earnings
Despite strong sales, Brighthouse Financial faced challenges with lower adjusted earnings. For Q2 2025, adjusted earnings were $198 million, or $3.43 per share, significantly lower than the $245 million in Q1 2025 and $346 million in Q2 2024. This decline reflects the company’s ongoing challenges in maintaining profitability.
Negative Statutory Results
The company experienced a decrease in its combined RBC ratio during Q2 2025, influenced by seasonality and adverse non-VA results, partially driven by mortality. This decline signals potential challenges in maintaining regulatory capital requirements.
Decline in Alternative Investment Income
Brighthouse Financial’s alternative investment portfolio yield fell to 1.5% in Q2, resulting in a $32 million decrease in alternative investment income, approximately $0.55 below the quarterly average run rate expectation. This decline highlights the volatility and challenges within the alternative investment landscape.
Forward-Looking Guidance
Looking ahead, Brighthouse Financial remains optimistic about its sales performance and strategic capital initiatives. The company expects continued strength in annuity sales, with Shield sales contributing significantly. The estimated combined RBC ratio is projected to remain within the target range of 400% to 450%. Additionally, the company plans to manage corporate expenses effectively and continue returning capital to shareholders through stock repurchases.
In conclusion, Brighthouse Financial’s earnings call revealed a company navigating both opportunities and challenges. While strong sales and a robust liquidity position are positive indicators, lower adjusted earnings and a decrease in the RBC ratio present hurdles. Investors will be keenly watching how the company addresses these challenges while capitalizing on its growth opportunities.