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Brighthouse (BHF) Q3 Earnings & Revenues Miss, Fall Y/Y
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Brighthouse Financial Inc. (BHF - Free Report) incurred third-quarter 2022 adjusted net loss of 4 cents per share against the Zacks Consensus Estimate of earnings of 78 cents and the year-ago earnings of $6.17.
The reported quarter witnessed lower premiums, higher expenses and lower adjusted net investment income.
Brighthouse Financial, Inc. Price, Consensus and EPS Surprise
Total operating revenues of $1.9 billion decreased 21.1% year over year due to lower premium, universal life and investment-type product policy fees and net investment income. The top line missed the consensus mark by 3.1%.
Premiums of $162 million decreased 16.1% year over year.
Adjusted net investment income was $900 million in the quarter under review, down 30.1% year over year, due to lower alternative investment income, partially offset by asset growth. The investment income yield was 3.2%.
Total expenses increased 16.2% year over year to $2.4 billion due to an increase in policyholder benefits and claims, interest credited to policyholder account balances and amortization of DAC and VOBA. Corporate expenses were $217 million.
Quarterly Segmental Update
Annuities reported an adjusted operating income of $125 million, down 67.5% year over year, due to lower fees, higher reserves and higher deferred acquisition costs (DAC) amortization, partially offset by lower expenses. Annuity sales increased 58% to $3.7 billion driven by higher sales of fixed deferred annuities.
Life generated an adjusted operating loss of $7 million against earnings of $38 million in the year-ago quarter on lower net investment income and a decline in underwriting margin. Life insurance sales decreased 30% to $19 million as a result of the recent macroeconomic headwinds.
Adjusted operating loss at Run-off was $21 million against the year-ago earnings of $38 million due to lower net investment income and underwriting margin.
Corporate & Other broke even against the prior-year loss of $83 million on higher net investment income.
Financial Update
Cash and cash equivalents were $4.8 billion, up 16.7% from 2021 end.
Shareholders’ equity of $10.2 billion at the end of the quarter decreased 63.7% from 2021 end.
Book value per share, excluding accumulated other comprehensive income (AOCI), was $153.47 as of Sep 30, 2022, up 19.7% year over year.
Statutory combined total adjusted capital was $8 billion on Sep 30, 2022, down 18.4% year over year.
As of Sep 30, 2022, the estimated combined RBC ratio was between 450% and 470%.
Share Buyback Program
Brighthouse bought back shares worth $136 million in the quarter under review, with another $52 million through Nov 3.
Zacks Rank
Brighthouse currently carries a Zacks Rank #5 (Strong Sell).
Of the life insurance industry players that have reported third-quarter results so far, Voya Financial, Inc. (VOYA - Free Report) and Reinsurance Group of America, Incorporated (RGA - Free Report) beat the respective Zacks Consensus Estimate for earnings, while Lincoln National Corporation (LNC - Free Report) missed the mark.
Voya Financial reported third-quarter 2022 adjusted operating earnings of $2.30 per share, which surpassed the Zacks Consensus Estimate by 84%. The bottom line however decreased 10.5% year over year. Total revenues amounted to $1.3 billion, which decreased 33.4% year over year.
Net investment income declined 22.4% year over year to $522 million. Meanwhile, fee income of $435 million decreased 10.7% year over year. Premiums totaled $607 million, up 11.6% from the year-ago quarter. Total expenses were $1.2 billion, down 10% from the year-ago quarter.
Reinsurance Group of America reported third-quarter 2022 adjusted operating earnings of $5.20 per share, which beat the Zacks Consensus Estimate by 76.8%. Moreover, the bottom line rebounded from the year-ago loss of $1.11. Net foreign currency fluctuations had an adverse effect of 15 cents per share on adjusted operating income.
Reinsurance Group's operating revenues of $4.2 billion beat the Zacks Consensus Estimate by 5%. The top line also improved 5.4% year over year on higher net premiums and other revenues. Net premiums of $3.2 billion rose 4.9% year over year. Investment income decreased 7.6% from the prior-year quarter to $374 million, reflecting lower variable investment income.
Lincoln National incurred third-quarter 2022 adjusted loss of $10.23 per share. The Zacks Consensus Estimate was of earnings of $1.93 per share. Earnings of $1.62 per share were reported in the prior-year quarter.
Adjusted operating revenues amounted to $4,630 million, which dropped 11% year over year. However, the top line beat the consensus mark by 5.9% and came above our estimate of $4,387.1 million. Lincoln National’s expenses of $7,935 million increased 62.8% year over year in the quarter under review.
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Brighthouse (BHF) Q3 Earnings & Revenues Miss, Fall Y/Y
Brighthouse Financial Inc. (BHF - Free Report) incurred third-quarter 2022 adjusted net loss of 4 cents per share against the Zacks Consensus Estimate of earnings of 78 cents and the year-ago earnings of $6.17.
The reported quarter witnessed lower premiums, higher expenses and lower adjusted net investment income.
Brighthouse Financial, Inc. Price, Consensus and EPS Surprise
Brighthouse Financial, Inc. price-consensus-eps-surprise-chart | Brighthouse Financial, Inc. Quote
Behind the Headlines
Total operating revenues of $1.9 billion decreased 21.1% year over year due to lower premium, universal life and investment-type product policy fees and net investment income. The top line missed the consensus mark by 3.1%.
Premiums of $162 million decreased 16.1% year over year.
Adjusted net investment income was $900 million in the quarter under review, down 30.1% year over year, due to lower alternative investment income, partially offset by asset growth. The investment income yield was 3.2%.
Total expenses increased 16.2% year over year to $2.4 billion due to an increase in policyholder benefits and claims, interest credited to policyholder account balances and amortization of DAC and VOBA. Corporate expenses were $217 million.
Quarterly Segmental Update
Annuities reported an adjusted operating income of $125 million, down 67.5% year over year, due to lower fees, higher reserves and higher deferred acquisition costs (DAC) amortization, partially offset by lower expenses. Annuity sales increased 58% to $3.7 billion driven by higher sales of fixed deferred annuities.
Life generated an adjusted operating loss of $7 million against earnings of $38 million in the year-ago quarter on lower net investment income and a decline in underwriting margin. Life insurance sales decreased 30% to $19 million as a result of the recent macroeconomic headwinds.
Adjusted operating loss at Run-off was $21 million against the year-ago earnings of $38 million due to lower net investment income and underwriting margin.
Corporate & Other broke even against the prior-year loss of $83 million on higher net investment income.
Financial Update
Cash and cash equivalents were $4.8 billion, up 16.7% from 2021 end.
Shareholders’ equity of $10.2 billion at the end of the quarter decreased 63.7% from 2021 end.
Book value per share, excluding accumulated other comprehensive income (AOCI), was $153.47 as of Sep 30, 2022, up 19.7% year over year.
Statutory combined total adjusted capital was $8 billion on Sep 30, 2022, down 18.4% year over year.
As of Sep 30, 2022, the estimated combined RBC ratio was between 450% and 470%.
Share Buyback Program
Brighthouse bought back shares worth $136 million in the quarter under review, with another $52 million through Nov 3.
Zacks Rank
Brighthouse currently carries a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Life Insurers
Of the life insurance industry players that have reported third-quarter results so far, Voya Financial, Inc. (VOYA - Free Report) and Reinsurance Group of America, Incorporated (RGA - Free Report) beat the respective Zacks Consensus Estimate for earnings, while Lincoln National Corporation (LNC - Free Report) missed the mark.
Voya Financial reported third-quarter 2022 adjusted operating earnings of $2.30 per share, which surpassed the Zacks Consensus Estimate by 84%. The bottom line however decreased 10.5% year over year. Total revenues amounted to $1.3 billion, which decreased 33.4% year over year.
Net investment income declined 22.4% year over year to $522 million. Meanwhile, fee income of $435 million decreased 10.7% year over year. Premiums totaled $607 million, up 11.6% from the year-ago quarter. Total expenses were $1.2 billion, down 10% from the year-ago quarter.
Reinsurance Group of America reported third-quarter 2022 adjusted operating earnings of $5.20 per share, which beat the Zacks Consensus Estimate by 76.8%. Moreover, the bottom line rebounded from the year-ago loss of $1.11. Net foreign currency fluctuations had an adverse effect of 15 cents per share on adjusted operating income.
Reinsurance Group's operating revenues of $4.2 billion beat the Zacks Consensus Estimate by 5%. The top line also improved 5.4% year over year on higher net premiums and other revenues. Net premiums of $3.2 billion rose 4.9% year over year. Investment income decreased 7.6% from the prior-year quarter to $374 million, reflecting lower variable investment income.
Lincoln National incurred third-quarter 2022 adjusted loss of $10.23 per share. The Zacks Consensus Estimate was of earnings of $1.93 per share. Earnings of $1.62 per share were reported in the prior-year quarter.
Adjusted operating revenues amounted to $4,630 million, which dropped 11% year over year. However, the top line beat the consensus mark by 5.9% and came above our estimate of $4,387.1 million. Lincoln National’s expenses of $7,935 million increased 62.8% year over year in the quarter under review.