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Brighthouse Financial (BHF)
NASDAQ:BHF

Brighthouse Financial (BHF) AI Stock Analysis

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Brighthouse Financial

(NASDAQ:BHF)

Rating:49Neutral
Price Target:
Brighthouse Financial's overall stock score is driven by significant financial instability, as indicated by negative equity and volatile cash flows, weighing heavily on its attractiveness. While the company demonstrates strong sales growth and strategic progress, technical indicators reflect bearish momentum, and valuation remains a mixed picture with low P/E but no dividend yield. The positive aspects from the earnings call help offset some risks, but financial challenges and technical weaknesses are predominant concerns.
Positive Factors
Earnings Performance
BHF reported Q4 EPS of $5.07, above estimates and consensus, indicating stronger-than-expected earnings performance.
Mergers and Acquisitions
Upgrading BHF to Strong Buy, as it could unlock substantial value via a whole company sale or by using creative options to free up capital.
Strategic Initiatives
Strategic initiatives, including a hedging/reinsurance deal, totaled north of $400m benefit to statutory earnings.
Negative Factors
Capital Adequacy
The RBC ratio came in below its 400-450% range for FY 2024, indicating potential capital adequacy concerns.
Corporate Expenses
Corporate expenses were higher than expected, at $239M versus an estimate of $203M.
Financial Stability
Normalized statutory earnings were a loss in the quarter, contributing to a negative outlook on financial stability.

Brighthouse Financial (BHF) vs. SPDR S&P 500 ETF (SPY)

Brighthouse Financial Business Overview & Revenue Model

Company DescriptionBrighthouse Financial, Inc. (BHF) is a major provider of annuities and life insurance in the United States. The company focuses on offering a range of financial products designed to help individuals protect their financial futures. Brighthouse Financial operates primarily in the insurance sector, delivering solutions that are tailored to meet the retirement and protection needs of its customers. The company was established as a spin-off from MetLife, Inc. and is headquartered in Charlotte, North Carolina.
How the Company Makes MoneyBrighthouse Financial makes money primarily through the sale of annuity and life insurance products. These products generate revenue through premiums collected from policyholders. The company invests these premiums to generate returns, which contribute to its income. Additionally, Brighthouse Financial earns fees from managing certain investment portfolios linked to its annuity and insurance products. The company's earnings are also influenced by factors such as interest rates, mortality rates, and the performance of the financial markets. Partnerships with financial advisors and brokers are significant in distributing their products and expanding their market reach, thereby enhancing revenue growth.

Brighthouse Financial Earnings Call Summary

Earnings Call Date:May 08, 2025
(Q1-2025)
|
% Change Since: -10.16%|
Next Earnings Date:Aug 07, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong sales growth in annuities and life insurance, a robust liquidity position, and ongoing progress in strategic initiatives, contributing to a positive outlook. However, the decline in fixed annuity sales, higher corporate expenses, and lower-than-expected alternative investment income present challenges. Despite these lowlights, the overall sentiment is positive due to strong capital management and strategic progress.
Q1-2025 Updates
Positive Updates
Strong Annuity and Life Insurance Sales
Brighthouse Financial reported total annuity sales of approximately $2.3 billion, with $2 billion from Shield sales, which increased 3% sequentially and 5% compared with the first quarter of 2024. Life insurance sales grew by 24% compared with Q1 2024.
Holding Company Liquid Assets and RBC Ratio
The company ended the quarter with holding company liquid assets of approximately $1 billion and an estimated RBC ratio between 420% and 440%, within their target range of 400% to 450%.
Progress in Hedging Strategy
Brighthouse Financial fully transitioned to hedging new Shield annuity business on a standalone basis, simplifying their hedging strategy and improving capital efficiency.
Capital Return to Shareholders
The company repurchased $59 million of common stock in the quarter, with an additional $26 million repurchased through May 6th.
Statutory Earnings and Capital Strength
Normalized statutory earnings for the quarter were approximately $300 million, benefiting from a 25 basis point increase in the prescribed 20-year treasury yield mean reversion point.
Negative Updates
Decline in Fixed Annuity Sales
Total annuity sales were down 21% compared with the first quarter of 2024, primarily driven by lower sales of fixed annuities.
Higher Corporate Expenses
Corporate expenses in the quarter were $239 million on a pre-tax basis, higher than the run rate expectation, although expected to normalize for the remainder of 2025.
Alternative Investment Income Below Expectations
Alternative investment income was $39 million, below the quarterly average run rate expectation, with an alternative investment portfolio yield of 1.4%.
Company Guidance
During Brighthouse Financial's first quarter 2025 earnings call, the company reported holding company liquid assets of approximately $1 billion and an estimated combined risk-based capital (RBC) ratio between 420% and 440%, aligning with their target range of 400% to 450%. Total annuity sales reached approximately $2.3 billion, with Shield sales contributing around $2 billion, marking a 3% sequential and 5% year-over-year increase. Life insurance sales rose by 24% year-over-year to $36 million. The company also repurchased $59 million of its common stock in the quarter, with an additional $26 million repurchased by May 6. Corporate expenses were $239 million, exceeding the expected run rate, but are anticipated to normalize for the rest of 2025.

Brighthouse Financial Financial Statement Overview

Summary
Brighthouse Financial's financial statements show volatility and instability. The income statement indicates inconsistent revenue growth and volatile net profit margins. The balance sheet is weak, with negative equity and high liabilities, raising solvency concerns. Cash flow is strained, with consistently negative free cash flow and fluctuations in operating cash flow.
Income Statement
45
Neutral
Brighthouse Financial's income statement reveals fluctuating performance with significant swings in net income over recent years. The gross profit margin remains stable due to the nature of the insurance industry, but the net profit margin is volatile, showing a stark improvement in 2024 from a significant loss in 2023. Revenue growth has been inconsistent, with a noticeable drop in 2023 followed by a rebound in 2024.
Balance Sheet
20
Very Negative
The balance sheet shows a concerning negative equity position in 2024, a significant deterioration from previous years. The debt-to-equity ratio is unfavorable due to negative equity, and the overall financial stability is weakened by high liabilities compared to assets, posing a risk to long-term solvency.
Cash Flow
30
Negative
The cash flow statement highlights challenges with consistently negative free cash flow and operating cash flow in recent years. Although there was a slight improvement in operating cash flow in 2024, the overall cash flow health is weak, with substantial fluctuations in free cash flow growth and negative operating cash flow to net income ratios.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue6.91B4.37B4.12B8.47B7.14B8.50B
Gross Profit4.88B4.37B4.12B8.47B7.14B8.50B
EBITDA-168.00M574.00M0.000.000.000.00
Net Income613.00M388.00M-1.11B10.00M-103.00M-1.06B
Balance Sheet
Total Assets234.68B238.54B236.34B225.72B259.84B247.87B
Cash, Cash Equivalents and Short-Term Investments85.31B86.97B3.85B80.77B94.00B89.84B
Total Debt3.15B3.15B3.16B3.16B3.16B3.44B
Total Liabilities229.38B234.24B231.33B220.19B4.22B5.06B
Stockholders Equity5.24B4.96B4.94B5.46B16.14B18.02B
Cash Flow
Free Cash Flow386.00M-290.00M-137.00M-1.15B746.00M888.00M
Operating Cash Flow386.00M-290.00M-137.00M-1.15B746.00M888.00M
Investing Cash Flow-1.01B-100.00M-3.20B-8.28B-12.24B-5.84B
Financing Cash Flow1.46B3.68B3.07B9.07B11.86B6.19B

Brighthouse Financial Technical Analysis

Technical Analysis Sentiment
Negative
Last Price52.01
Price Trends
50DMA
57.44
Negative
100DMA
56.49
Negative
200DMA
53.16
Negative
Market Momentum
MACD
-1.60
Positive
RSI
36.48
Neutral
STOCH
22.78
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BHF, the sentiment is Negative. The current price of 52.01 is below the 20-day moving average (MA) of 55.38, below the 50-day MA of 57.44, and below the 200-day MA of 53.16, indicating a bearish trend. The MACD of -1.60 indicates Positive momentum. The RSI at 36.48 is Neutral, neither overbought nor oversold. The STOCH value of 22.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BHF.

Brighthouse Financial Risk Analysis

Brighthouse Financial disclosed 46 risk factors in its most recent earnings report. Brighthouse Financial reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Brighthouse Financial Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
GNGNW
73
Outperform
$3.24B15.282.73%0.98%156.14%
JXJXN
69
Neutral
$6.29B85.791.24%3.64%3.55%8.91%
FGFG
67
Neutral
$4.20B8.4212.72%2.79%-1.72%95.91%
LNLNC
65
Neutral
$5.85B4.8716.91%5.14%8.31%-2.30%
64
Neutral
$6.51B11.177.19%226.02%23.75%4.96%
CNCNO
61
Neutral
$3.72B13.1112.47%1.81%-0.78%-16.22%
BHBHF
49
Neutral
$2.99B6.2213.00%142.17%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
BHF
Brighthouse Financial
52.01
4.40
9.24%
CNO
CNO Financial
36.75
8.37
29.49%
GNW
Genworth Financial
7.53
1.36
22.04%
LNC
Lincoln National
34.42
3.80
12.41%
JXN
Jackson Financial Incorporation
85.73
10.70
14.26%
FG
F&G Annuities & Life Inc
31.13
-10.01
-24.33%

Brighthouse Financial Corporate Events

Executive/Board ChangesShareholder Meetings
Brighthouse Financial Stockholders Vote on Key Proposals
Neutral
Jun 16, 2025

At the 2025 Annual Meeting, Brighthouse Financial‘s stockholders voted on four proposals. The stockholders elected nine directors for a one-year term, ratified Deloitte & Touche LLP as the independent auditor for 2025, approved executive compensation, and endorsed the Employee Plan.

The most recent analyst rating on (BHF) stock is a Hold with a $59.00 price target. To see the full list of analyst forecasts on Brighthouse Financial stock, see the BHF Stock Forecast page.

Regulatory Filings and Compliance
Brighthouse Financial Opposes Potemkin’s Mini-Tender Offer
Negative
May 20, 2025

On May 20, 2025, Brighthouse Financial announced its opposition to an unsolicited mini-tender offer by Potemkin Limited to purchase up to 100,000 shares of its common stock at $36.00 per share, a price significantly below the market value. The company advises shareholders against accepting the offer, which represents a 41.12% discount to the stock’s closing price on May 19, 2025, and highlights that such offers lack the investor protections required by the SEC for larger tender offers.

The most recent analyst rating on (BHF) stock is a Hold with a $59.00 price target. To see the full list of analyst forecasts on Brighthouse Financial stock, see the BHF Stock Forecast page.

Stock BuybackFinancial Disclosures
Brighthouse Financial Reports Q1 2025 Results with Net Loss
Neutral
May 8, 2025

Brighthouse Financial reported its first-quarter 2025 results, showing a net loss of $294 million, a significant improvement from the $519 million loss in the same quarter of 2024. Despite the net loss, the company achieved adjusted earnings of $245 million, reflecting strong sales of its Shield Level Annuities and a robust capital position. The company also repurchased $85 million of its common stock year-to-date through May 6, 2025, indicating confidence in its financial stability.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 09, 2025