We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Brighthouse Financial (BHF) Q3 Earnings Top, Revenues Up Y/Y
Read MoreHide Full Article
Brighthouse Financial Inc.'s (BHF - Free Report) third-quarter 2018 adjusted net income of $2.23 per share outpaced the Zacks Consensus Estimate of $2.19 by 1.8%. The bottom line also rebounded from the year-ago loss of $5.64.
Brighthouse Financial, Inc. Price, Consensus and EPS Surprise
The reported quarter witnessed continued sales growth in annuities and an improvement in net investment income.
Net loss came in at $2.26 per share, wider than $7.87 loss incurred in the year-ago quarter.
Behind the Headlines
Operating revenues of $1.2 billion inched up 1.9% year over year.
Premiums of $225 million decreased 4.7% year over year.
Adjusted net investment income was $852 million in the quarter under review, up 9.2% year over year. This improvement was fueled by growth in average invested assets, the ongoing repositioning of the investment portfolio and higher alternative investment income. Investment income yield was 4.5%.
Corporate expenses of $242 million pre tax decreased from $288 million pre tax in the second quarter of 2018.
Total expenses declined 14.6% year over year on lower interest credited to policyholder account balances, policyholder benefits as well as a decrease in amortization of deferred acquisition costs and value of business acquired.
Quarterly Segment Update
Annuities reported adjusted operating income of $401 million, up nearly 13% year over year on higher net investment income, partially offset by a rise in deferred acquisition cost and escalated expenses. Annuity sales surged 43%, driven by solid sales of Shield and fixed indexed annuities.
Life generated adjusted operating income of $61 million, having increased more than 10-fold year over year. This uptick stemmed from higher net investment income and lower DAC amortization, partially offset by growth in claims. Life insurance sales were $2 million in the quarter under consideration.
Adjusted operating loss in Run-off was $105 million against earnings of $83 million in the year-earlier period. This downside was attributable to higher claims and reserve development plus lower net investment income, partially offset by reduced expenses.
Adjusted operating loss at Corporate & Other was $87 million, much narrower than the prior-year loss of $1.1 billion due to lower expenses, partially offset by a decline in net investment income.
Financial Update
Cash and cash equivalents were $2.1 billion, up 26.3% year over year.
Shareholders’ equity of $12.9 billion at the quarter-end decreased 6.4% year over year.
Book value per share was $103.80 as of Sep 30, 2018, down 0.2% year over year.
Share Buyback Program
Brighthouse Financial bought back shares worth $42 million in the third quarter.
Among other players from the insurance industry having already reported third-quarter earnings, the bottom line of Genworth Financial Inc. (GNW - Free Report) , Lincoln National Corporation (LNC - Free Report) and Reinsurance Group of America, Incorporated. (RGA - Free Report) surpassed the respective Zacks Consensus Estimate.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
Image: Bigstock
Brighthouse Financial (BHF) Q3 Earnings Top, Revenues Up Y/Y
Brighthouse Financial Inc.'s (BHF - Free Report) third-quarter 2018 adjusted net income of $2.23 per share outpaced the Zacks Consensus Estimate of $2.19 by 1.8%. The bottom line also rebounded from the year-ago loss of $5.64.
Brighthouse Financial, Inc. Price, Consensus and EPS Surprise
Brighthouse Financial, Inc. Price, Consensus and EPS Surprise | Brighthouse Financial, Inc. Quote
The reported quarter witnessed continued sales growth in annuities and an improvement in net investment income.
Net loss came in at $2.26 per share, wider than $7.87 loss incurred in the year-ago quarter.
Behind the Headlines
Operating revenues of $1.2 billion inched up 1.9% year over year.
Premiums of $225 million decreased 4.7% year over year.
Adjusted net investment income was $852 million in the quarter under review, up 9.2% year over year. This improvement was fueled by growth in average invested assets, the ongoing repositioning of the investment portfolio and higher alternative investment income. Investment income yield was 4.5%.
Corporate expenses of $242 million pre tax decreased from $288 million pre tax in the second quarter of 2018.
Total expenses declined 14.6% year over year on lower interest credited to policyholder account balances, policyholder benefits as well as a decrease in amortization of deferred acquisition costs and value of business acquired.
Quarterly Segment Update
Annuities reported adjusted operating income of $401 million, up nearly 13% year over year on higher net investment income, partially offset by a rise in deferred acquisition cost and escalated expenses. Annuity sales surged 43%, driven by solid sales of Shield and fixed indexed annuities.
Life generated adjusted operating income of $61 million, having increased more than 10-fold year over year. This uptick stemmed from higher net investment income and lower DAC amortization, partially offset by growth in claims. Life insurance sales were $2 million in the quarter under consideration.
Adjusted operating loss in Run-off was $105 million against earnings of $83 million in the year-earlier period. This downside was attributable to higher claims and reserve development plus lower net investment income, partially offset by reduced expenses.
Adjusted operating loss at Corporate & Other was $87 million, much narrower than the prior-year loss of $1.1 billion due to lower expenses, partially offset by a decline in net investment income.
Financial Update
Cash and cash equivalents were $2.1 billion, up 26.3% year over year.
Shareholders’ equity of $12.9 billion at the quarter-end decreased 6.4% year over year.
Book value per share was $103.80 as of Sep 30, 2018, down 0.2% year over year.
Share Buyback Program
Brighthouse Financial bought back shares worth $42 million in the third quarter.
Zacks Rank
Brighthouse Financial carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Insurers
Among other players from the insurance industry having already reported third-quarter earnings, the bottom line of Genworth Financial Inc. (GNW - Free Report) , Lincoln National Corporation (LNC - Free Report) and Reinsurance Group of America, Incorporated. (RGA - Free Report) surpassed the respective Zacks Consensus Estimate.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>