Brighthouse Financial Delivers Impressive 2024 Results
Brighthouse Financial, Inc. (Nasdaq: BHF), a leading provider of life insurance and annuity products, reported strong financial results for the fourth quarter and full year of 2024. The results indicate a remarkable recovery from the net losses experienced in 2023 and showcase the company's resilience amid market fluctuations.
Highlights from the Fourth Quarter and Full Year 2024
The financial report revealed a net income available to shareholders of $646 million for the fourth quarter, translating to $10.79 per diluted share. This is a significant improvement compared to the loss of $942 million, or $14.70 per diluted share, in the corresponding quarter of 2023. Such a turnaround highlights the company’s strategic management of resources and operations to adapt to changing market conditions.
Common Stockholders' Equity
Brighthouse ended the fourth quarter with a book value of $3.3 billion, or $55.60 per common share. The book value, excluding accumulated other comprehensive income, stood at $8.5 billion, which comes to $145.63 per common share. This reflects the firm’s robust capital position even as market conditions evolve.
Framing Adjusted Earnings and Corporate Expenses
Adjusted earnings for the fourth quarter reached $304 million, or $5.07 per diluted share, compared to $177 million, or $2.73 per share, in the fourth quarter of 2023. Notably, adjusted earnings were affected by an unfavorable notable item of $48 million due to actuarial model updates. Meanwhile, corporate expenses decreased to $210 million in Q4, from $244 million a year ago, demonstrating improved operational efficiency.
Annuity and Life Sales Performance
In terms of sales, annuity sales showed a decrease of 18% quarter-over-quarter due to lower sales of fixed deferred annuities, but this was offset by record sales of Shield Level Annuities. Conversely, life insurance sales soared to a record $120 million, marking a 14% increase quarter-over-quarter as demand for Brighthouse SmartCare products surged. These trends underscore the effectiveness of the company’s product offerings in the current market.
Full Year Insights
For the year ended 2024, Brighthouse reported a net income available to shareholders of $286 million, or $4.64 per diluted share, significantly better than the loss of $1,214 million in 2023. The adjusted earnings for the year were $1,209 million, or $19.63 per diluted share, reflecting a strong annual performance driven by strategic initiatives and product innovation.
Capital Management and Share Buybacks
During Q4, the company repurchased $60 million of its common stock, contributing to a total of $250 million for the full year, effectively reducing outstanding shares relative to year-end 2023 by approximately 8%. Such actions reinforce the confidence in the company’s long-term value and commitment to returning capital to shareholders.
CEO's Commentary on Market Strategy
Eric Steigerwalt, President and CEO of Brighthouse Financial, commented on the company's strategic initiatives, including the completion of a reinsurance transaction designed to offload risk associated with a legacy block of universal life products. He expressed optimism about the future performance, with a combined risk-based capital (RBC) ratio around 400%, supported by robust holding company liquid assets that reflect financial strength.
Frequently Asked Questions
What were Brighthouse Financial's earnings for the fourth quarter of 2024?
Brighthouse reported a net income of $646 million or $10.79 per diluted share for the fourth quarter of 2024.
How did the company's life and annuity sales perform?
Annuity sales decreased by 18%, while life sales surged to a record $120 million, an increase of 14% quarter-over-quarter.
What were the adjusted earnings for the year 2024?
The adjusted earnings for Brighthouse in 2024 were $1,209 million, equating to $19.63 per diluted share.
What actions did Brighthouse Financial take regarding share buybacks?
In 2024, Brighthouse repurchased $250 million in common stock, reducing shares outstanding by around 8% compared to year-end 2023.
What is the combined risk-based capital ratio of Brighthouse Financial?
The estimated combined RBC ratio of Brighthouse Financial is approximately 400% as of the end of 2024.
