Brighthouse Financial Inc. (BHF - Free Report) reported fourth-quarter 2023 adjusted net income of $2.92 per share, which missed the Zacks Consensus Estimate by 23.8%. The bottom line declined 16.8% year over year.
The results reflected higher revenues offset by higher expenses.
Behind the Headlines
Total operating revenues of $2.1 billion increased 5.4% year over year, driven by higher premiums, net investment income and other income. The top line beat the consensus mark by 0.2%.
Premiums of $226 million increased 35.5% year over year.
Adjusted net investment income was $1.2 billion in the quarter under review, up 13.3% year over year, primarily driven by alternative investment income, asset growth and higher interest rates. The investment income yield was 4.16%.
Total expenses were $2.6 million. Corporate expenses, pretax, were $224 million, a slight increase from $243 million incurred in the year ago quarter.
Quarterly Segmental Update
Annuities recorded an adjusted operating income of $245 million, up 26.3% year over year, attributable to lower fees, higher expenses and a lower underwriting margin. Annuity sales decreased 8% to $2.7 billion, attributable to lower fixed deferred annuity sales, partially offset by strong Shield Annuity sales.
Life’s adjusted operating income was $4 million, down 76.5% year over year. The year-over-year deterioration was due to a lower underwriting margin, partially offset by higher net investment income and lower expenses. Life insurance sales increased 28% to $29 million.
Adjusted operating loss at Run-off was $50 million against the year-ago income of $236 million, reflecting lower underwriting margin, partially offset by higher net investment income.
Corporate & Other incurred an adjusted operating loss of $22 million against the year-ago income of $98 million, reflecting lower tax benefits and higher expenses.
Financial Update
Cash and cash equivalents were $3.8 billion, down 6.4% year over year.
Shareholders’ equity of $4.9 billion at the end of 2023 decreased 10.7% year over year.
Book value per share, excluding accumulated other comprehensive income, was $133.69 as of Dec 31, 2023, down 8.2% year over year.
Statutory combined total adjusted capital was $6.3 billion as of Dec 31, 2023, down 22.2% year over year.
As of Dec 31, 2023, the estimated combined risk-based capital ratio was 420%.
Share Buyback Program
Brighthouse bought back shares worth $250 million in 2023, with another $30 million through Feb 9, 2024. The company has about $763 million remaining under its current share repurchase authorizations.
Zacks Rank
Brighthouse currently 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 Life Insurers
Reinsurance Group of America (RGA - Free Report) reported fourth-quarter 2023 adjusted operating earnings of $4.73 per share, which beat the Zacks Consensus Estimate by 7.5%. Moreover, the bottom line increased 52.8% year over year.
RGA's operating revenues of $5.2 billion beat the Zacks Consensus Estimate by 13.2%. The top line also improved 18.2% year over year due to higher net premiums. Net premiums of $4.1 billion rose 19.2% year over year.
Voya Financial (VOYA - Free Report) reported fourth-quarter 2023 adjusted operating earnings of $1.97 per share, which missed the Zacks Consensus Estimate by about 1%. The bottom line decreased 9.6% year over year due to disappointing net underwriting results, partially offset by higher fee income.
Adjusted operating revenues amounted to $236 million, which decreased 11.3% year over year. The top line missed the Zacks Consensus Estimate by 22.5%.
As of Dec 31, 2023, VOYA’s assets under management, assets under administration and advisement totaled $813.5 million.
Sun Life Financial Inc. (SLF - Free Report) delivered fourth-quarter 2023 underlying net income of $1.23 per share, which beat the Zacks Consensus Estimate by 5.1%. However, the bottom line decreased 1.6% year over year. Underlying net income was $722 million (C$983 million), which increased 10% year over year. Revenues of $13.7 billion increased 51.5% year over year.
Wealth sales & asset management gross flows of $33.7 billion (C$45.8 billion) increased 5.7% year over year. Group - Health & Protection sales of $1.1 billion (C$1.5 billion) improved 8.5% year over year. Individual - Protection sales of $519.6 million (C$707 million) jumped 42% year over year. New business contractual service margin (CSM) was $280 million (C$381 million), up 51% year over year.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>
Brighthouse Financial Inc. (BHF - Free Report) reported fourth-quarter 2023 adjusted net income of $2.92 per share, which missed the Zacks Consensus Estimate by 23.8%. The bottom line declined 16.8% year over year.
The results reflected higher revenues offset by higher expenses.
Behind the Headlines
Total operating revenues of $2.1 billion increased 5.4% year over year, driven by higher premiums, net investment income and other income. The top line beat the consensus mark by 0.2%.
Premiums of $226 million increased 35.5% year over year.
Adjusted net investment income was $1.2 billion in the quarter under review, up 13.3% year over year, primarily driven by alternative investment income, asset growth and higher interest rates. The investment income yield was 4.16%.
Total expenses were $2.6 million. Corporate expenses, pretax, were $224 million, a slight increase from $243 million incurred in the year ago quarter.
Quarterly Segmental Update
Annuities recorded an adjusted operating income of $245 million, up 26.3% year over year, attributable to lower fees, higher expenses and a lower underwriting margin. Annuity sales decreased 8% to $2.7 billion, attributable to lower fixed deferred annuity sales, partially offset by strong Shield Annuity sales.
Life’s adjusted operating income was $4 million, down 76.5% year over year. The year-over-year deterioration was due to a lower underwriting margin, partially offset by higher net investment income and lower expenses. Life insurance sales increased 28% to $29 million.
Adjusted operating loss at Run-off was $50 million against the year-ago income of $236 million, reflecting lower underwriting margin, partially offset by higher net investment income.
Corporate & Other incurred an adjusted operating loss of $22 million against the year-ago income of $98 million, reflecting lower tax benefits and higher expenses.
Financial Update
Cash and cash equivalents were $3.8 billion, down 6.4% year over year.
Shareholders’ equity of $4.9 billion at the end of 2023 decreased 10.7% year over year.
Book value per share, excluding accumulated other comprehensive income, was $133.69 as of Dec 31, 2023, down 8.2% year over year.
Statutory combined total adjusted capital was $6.3 billion as of Dec 31, 2023, down 22.2% year over year.
As of Dec 31, 2023, the estimated combined risk-based capital ratio was 420%.
Share Buyback Program
Brighthouse bought back shares worth $250 million in 2023, with another $30 million through Feb 9, 2024. The company has about $763 million remaining under its current share repurchase authorizations.
Zacks Rank
Brighthouse currently 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 Life Insurers
Reinsurance Group of America (RGA - Free Report) reported fourth-quarter 2023 adjusted operating earnings of $4.73 per share, which beat the Zacks Consensus Estimate by 7.5%. Moreover, the bottom line increased 52.8% year over year.
RGA's operating revenues of $5.2 billion beat the Zacks Consensus Estimate by 13.2%. The top line also improved 18.2% year over year due to higher net premiums. Net premiums of $4.1 billion rose 19.2% year over year.
Voya Financial (VOYA - Free Report) reported fourth-quarter 2023 adjusted operating earnings of $1.97 per share, which missed the Zacks Consensus Estimate by about 1%. The bottom line decreased 9.6% year over year due to disappointing net underwriting results, partially offset by higher fee income.
Adjusted operating revenues amounted to $236 million, which decreased 11.3% year over year. The top line missed the Zacks Consensus Estimate by 22.5%.
As of Dec 31, 2023, VOYA’s assets under management, assets under administration and advisement totaled $813.5 million.
Sun Life Financial Inc. (SLF - Free Report) delivered fourth-quarter 2023 underlying net income of $1.23 per share, which beat the Zacks Consensus Estimate by 5.1%. However, the bottom line decreased 1.6% year over year. Underlying net income was $722 million (C$983 million), which increased 10% year over year. Revenues of $13.7 billion increased 51.5% year over year.
Wealth sales & asset management gross flows of $33.7 billion (C$45.8 billion) increased 5.7% year over year. Group - Health & Protection sales of $1.1 billion (C$1.5 billion) improved 8.5% year over year. Individual - Protection sales of $519.6 million (C$707 million) jumped 42% year over year. New business contractual service margin (CSM) was $280 million (C$381 million), up 51% year over year.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>
Get the latest research report on RGA - FREE
Get the latest research report on SLF - FREE
Get the latest research report on VOYA - FREE
Get the latest research report on BHF - FREE