Brighthouse Financial Reports Strong Third Quarter 2025 Results
Brighthouse Financial, Inc. (“Brighthouse Financial” or the “Company”) (Nasdaq: BHF) today announced its financial results for the third quarter ended September 30, 2025. The Company delivered solid operating performance during the quarter, highlighted by significant growth in adjusted earnings, record annuity sales, and continued balance sheet strength, while executing key elements of its long-term strategic plan.
Third Quarter 2025 Highlights
Brighthouse Financial reported net income available to shareholders of $453 million, or $7.89 per diluted share, for the third quarter of 2025. This compares with net income of $150 million, or $2.47 per diluted share, for the third quarter of 2024. The Company noted that its net income may continue to experience volatility due to differences between its hedge target and GAAP reserves, which are influenced by market performance.
During the quarter, Brighthouse completed its annual GAAP actuarial review, an important process that assesses the long-term assumptions underlying its business. The review resulted in a net favorable impact of $316 million to net income available to shareholders. As part of this review, Brighthouse increased its long-term mean reversion interest rate assumption for the 10-year U.S. Treasury from 4.00% to 4.50% and updated several policyholder behavior assumptions.
At the end of the third quarter, the Company reported book value of $4.7 billion, or $81.60 per common share, and book value excluding accumulated other comprehensive income (AOCI) of $8.7 billion, or $151.94 per common share.
Strong Growth in Adjusted Earnings
For the third quarter of 2025, adjusted earnings were $970 million, or $16.87 per diluted share, compared with $767 million, or $12.58 per diluted share, in the third quarter of 2024. Adjusted earnings included $709 million of net favorable notable items, or $12.33 per diluted share, primarily related to the annual actuarial review and other insurance adjustments.
Excluding these notable items, adjusted earnings, less notable items, were $261 million, or $4.54 per diluted share, compared with $243 million, or $3.99 per diluted share, in the prior-year quarter.
Corporate expenses totaled $205 million on a pre-tax basis, modestly higher than both the third quarter of 2024 ($203 million) and the second quarter of 2025 ($202 million).
Sales and Operating Performance
Brighthouse Financial achieved strong sales performance across key product lines during the quarter.
- Annuity sales totaled $2.7 billion, up 8% year-over-year and 5% sequentially, driven by record sales of Shield Level Annuities and higher fixed annuity sales.
- Year-to-date through the third quarter, total annuity sales were down 3% compared with 2024; however, Shield Level Annuity sales rose 3% over the same period.
- Life insurance sales reached $38 million, increasing 27% year-over-year, 15% sequentially, and 23% year-to-date compared with the same period in 2024.
President and Chief Executive Officer Eric Steigerwalt commented,
Brighthouse Financial delivered solid results in the quarter as we continued to execute our strategy. Alongside strong sales and another record quarter for our flagship Shield annuities, we successfully completed the separation of our legacy VA and first-generation Shield business. We ended the quarter with an estimated combined RBC ratio between 435% and 455%, at the upper end of our target range of 400% to 450% in normal market conditions
Steigerwalt added,
We believe the transaction with Aquarian Capital announced today will deliver compelling value to our stockholders, while positioning Brighthouse Financial to pursue future growth opportunities and continue helping people achieve financial security.
Segment Results
Annuities:
The Annuities segment generated adjusted earnings of $304 million in the third quarter of 2025, compared with $327 million in the prior-year period and $332 million in the second quarter of 2025.
Results reflected a $7 million unfavorable notable item related to the actuarial review, compared with a $20 million favorable item in the prior-year quarter. Excluding notable items, results were driven by higher net investment income, partially offset by lower fees and a lower underwriting margin.
Life:
The Life segment produced adjusted earnings of $40 million, compared with a loss of $25 million in the third quarter of 2024 and a loss of $26 million in the second quarter of 2025.
This quarter’s results included an $11 million favorable notable item, compared with a $66 million unfavorable item in the prior-year quarter. Excluding notable items, performance reflected higher net investment income and a stronger underwriting margin, partially offset by increased expenses.
Run-off:
The Run-off segment reported adjusted earnings of $641 million, up from $463 million in the prior-year quarter and compared with an adjusted loss of $83 million in the second quarter of 2025. The strong result included a $705 million favorable notable item related to the actuarial review. Excluding notable items, the increase was primarily driven by a higher underwriting margin, higher investment income, and lower expenses.
Corporate & Other:
The Corporate & Other segment reported an adjusted loss of $15 million, compared with adjusted earnings of $2 million in the prior-year quarter and an adjusted loss of $25 million in the previous quarter. Results reflected lower net investment income and a reduced tax benefit, partially offset by lower expenses.
Investment Income and Capital Strength
Net investment income for the quarter was $1.334 billion, and adjusted net investment income was $1.327 billion. Adjusted net investment income rose $33 million year-over-year and $35 million sequentially, driven primarily by higher returns on alternative investments. The adjusted net investment income yield was 4.40% during the quarter.
On a statutory basis, the Company’s combined total adjusted capital was $5.4 billion as of September 30, 2025, compared with $5.6 billion at June 30, 2025, and $5.7 billion at September 30, 2024.
The estimated combined RBC ratio was between 435% and 455%, positioning Brighthouse at the upper end of its target range of 400% to 450%. The ratio benefited from the completed separation of the VA and first-generation Shield business, optimization of hedge targets, and enhanced asset-liability alignment within its models.
At quarter-end, holding company liquid assets totaled $1.0 billion. Brighthouse expects that after its 2025 statutory annual actuarial review, it will remain within its RBC target range without the need for additional capital contributions to insurance subsidiaries.
Conference Call and Transaction Update
As previously disclosed, Brighthouse Financial will not host an earnings conference call for the third quarter of 2025 due to the announced transaction with Aquarian Capital. Further details regarding this transaction and its expected impact will be provided in subsequent disclosures.
About Brighthouse Financial, Inc.
Brighthouse Financial, Inc. (Nasdaq: BHF) is one of the largest providers of annuities and life insurance in the United States, dedicated to helping people achieve financial security. The Company designs products that help individuals protect what they’ve earned and ensure it lasts throughout their lives.
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are not historical facts but instead reflect Brighthouse Financial’s current beliefs, expectations, and assumptions about future events.
Forward-looking statements are subject to numerous risks and uncertainties that could cause actual results to differ materially from those expressed or implied. These risks include, but are not limited to:
- Variances between actual experience and actuarial assumptions;
- Effectiveness of risk management strategies and potential volatility in profitability measures;
- Changes in interest rates and their impact on statutory capital and profitability;
- Changes in accounting standards or regulatory requirements;
- The outcome of the proposed merger with Aquarian Capital and the associated approvals;
- General economic, market, and geopolitical conditions affecting investment returns and liquidity;
- Competitive pressures, distribution challenges, and third-party service dependencies; and
- Other factors described in the Company’s filings with the Securities and Exchange Commission (SEC), including its latest Annual Report on Form 10-K and subsequent Form 10-Q and Form 8-K filings.
Brighthouse Financial undertakes no obligation to update these forward-looking statements except as required by law.
Brighthouse Financial uses certain non-GAAP financial measures to evaluate its performance, including adjusted earnings, adjusted revenues, adjusted expenses, adjusted net investment income, and adjusted return on common equity. These measures are intended to enhance investors’ understanding of the Company’s underlying business trends by excluding market-driven volatility and non-recurring items.
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