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 (BHF) Q1 Earnings Beat, Revenues Miss Estimates
Read MoreHide Full Article
Brighthouse Financial (BHF - Free Report) reported first-quarter 2024 adjusted net income of $4.25 per share, which beat the Zacks Consensus Estimate by 7.3%. The bottom line improved 48.6% year over year.
The results reflected higher premiums and net investment income as well as lower expenses.
Behind the Headlines
Total operating revenues of $2.1 billion increased 2.9% year over year, driven by higher premiums, net investment income and other income. The top line, however, missed the consensus mark by 3.5%.
Premiums of $202 million increased 2.5% year over year.
Brighthouse Financial, Inc. Price, Consensus and EPS Surprise
Adjusted net investment income was $1.3 billion in the quarter under review, up 15.5% year over year, primarily driven by alternative investment income, asset growth and higher interest rates. The investment income yield was 4.25%.
Total expenses were $688 million, down 64.5% year over year. Corporate expenses, pretax, were $207 million, down 1.4% year over year.
Quarterly Segmental Update
Annuities recorded an adjusted operating income of $313 million, up slightly year over year. Annuity sales increased 3% to $2.9 billion, attributable to strong Shield Level Annuity sales and higher fixed indexed annuity sales from the company's recently launched SecureKey product.
Life’s adjusted operating loss was $36 million against earnings of $1 million in the year-ago reported quarter. Higher underwriting margin and higher net investment income were offset by unfavorable notable item related to a reinsurance premium rate increase retroactive to September 2019, which resulted from the conclusion of a reinsurance arbitration. Life insurance sales increased 26% to $29 million.
Adjusted operating loss at Run-off was $341 million against the year-ago income of $106 million, reflecting unfavorable notable items related to a reinsurance premium rate increase retroactive to September 2019, which resulted from the conclusion of a reinsurance arbitration.
Corporate & Other incurred an adjusted operating loss of $341 million, wider than the year-ago loss of $14 million, reflecting lower tax.
Financial Update
Cash and cash equivalents were $3.8 billion, down 6.4% year over year.
Shareholders’ equity of $4.2 billion at the end of first-quarter 2024 decreased 27.1% year over year.
Book value per share, excluding accumulated other comprehensive income, was $126.35 as of Mar 31, 2024, down 8.9% year over year.
Statutory combined total adjusted capital was $6 billion as of Mar 31, 2024, down 26.8% year over year.
As of Mar 31, 2024, the estimated combined risk-based capital ratio was 415%-435%.
Share Buyback Program
Brighthouse bought back shares worth $62 million in the first quarter of 2024, with another $27 million through May 3, 2024.
Reinsurance Group of America, Incorporated (RGA - Free Report) reported first-quarter 2024 adjusted operating earnings of $6.02 per share, which beat the Zacks Consensus Estimate by 33.5%. The bottom line increased 16.7% from the year-ago quarter. RGA's operating revenues of $6.5 billion improved 50% year over year, driven by higher net premiums, investment income, net of related expenses and other revenues.
Net premiums of $5.4 billion jumped 58.8% year over year. Investment income and net of related expenses increased 12.3% from the prior-year quarter to $961 million. The average investment yield declined 1 basis point to 4.70%, primarily due to higher new money rates, offset by lower variable investment income.
Lincoln National Corporation (LNC - Free Report) reported first-quarter 2024 adjusted earnings of $1.37 per share, which beat the Zacks Consensus Estimate by 24.6%. However, the bottom line declined 9.9% year over year. Adjusted operating revenues of $4.6 billion declined 1.6% year over year in the quarter under review. The top line lagged the consensus mark by 1.3%.
Fee income declined 4% year over year to $1.3 billion, which missed the Zacks Consensus Estimate of $1.4 billion. Insurance premiums of $1.6 billion rose 1.4% year over year. The metric missed the consensus mark by 1%. Net investment income of $1.3 billion declined 8.2% year over year and missed the consensus mark of $1.4 billion. Meanwhile, other revenues climbed 39.2% year over year.
Voya Financial, Inc. (VOYA - Free Report) reported first-quarter 2024 adjusted operating earnings of $1.88 per share, which beat the Zacks Consensus Estimate by 18.9%. The bottom line increased 11.2% year over year. Adjusted operating revenues amounted to $1.9 billion, up 8.9% year over year, driven by higher fee income, premiums and other revenues.
Net investment income declined 2.9% year over year to $529 million. Meanwhile, fee income of $513 million increased 10.5% year over year. Premiums totaled $800 million, up 16.8% from the year-ago quarter. Total benefits and expenses were $1.7 billion, up 4.1% from the year-ago quarter. As of Mar 31, 2024, VOYA’s assets under management, assets under administration and advisement totaled $848.6 billion.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Brighthouse (BHF) Q1 Earnings Beat, Revenues Miss Estimates
Brighthouse Financial (BHF - Free Report) reported first-quarter 2024 adjusted net income of $4.25 per share, which beat the Zacks Consensus Estimate by 7.3%. The bottom line improved 48.6% year over year.
The results reflected higher premiums and net investment income as well as lower expenses.
Behind the Headlines
Total operating revenues of $2.1 billion increased 2.9% year over year, driven by higher premiums, net investment income and other income. The top line, however, missed the consensus mark by 3.5%.
Premiums of $202 million increased 2.5% year over year.
Brighthouse Financial, Inc. Price, Consensus and EPS Surprise
Brighthouse Financial, Inc. price-consensus-eps-surprise-chart | Brighthouse Financial, Inc. Quote
Adjusted net investment income was $1.3 billion in the quarter under review, up 15.5% year over year, primarily driven by alternative investment income, asset growth and higher interest rates. The investment income yield was 4.25%.
Total expenses were $688 million, down 64.5% year over year. Corporate expenses, pretax, were $207 million, down 1.4% year over year.
Quarterly Segmental Update
Annuities recorded an adjusted operating income of $313 million, up slightly year over year. Annuity sales increased 3% to $2.9 billion, attributable to strong Shield Level Annuity sales and higher fixed indexed annuity sales from the company's recently launched SecureKey product.
Life’s adjusted operating loss was $36 million against earnings of $1 million in the year-ago reported quarter. Higher underwriting margin and higher net investment income were offset by unfavorable notable item related to a reinsurance premium rate increase retroactive to September 2019, which resulted from the conclusion of a reinsurance arbitration. Life insurance sales increased 26% to $29 million.
Adjusted operating loss at Run-off was $341 million against the year-ago income of $106 million, reflecting unfavorable notable items related to a reinsurance premium rate increase retroactive to September 2019, which resulted from the conclusion of a reinsurance arbitration.
Corporate & Other incurred an adjusted operating loss of $341 million, wider than the year-ago loss of $14 million, reflecting lower tax.
Financial Update
Cash and cash equivalents were $3.8 billion, down 6.4% year over year.
Shareholders’ equity of $4.2 billion at the end of first-quarter 2024 decreased 27.1% year over year.
Book value per share, excluding accumulated other comprehensive income, was $126.35 as of Mar 31, 2024, down 8.9% year over year.
Statutory combined total adjusted capital was $6 billion as of Mar 31, 2024, down 26.8% year over year.
As of Mar 31, 2024, the estimated combined risk-based capital ratio was 415%-435%.
Share Buyback Program
Brighthouse bought back shares worth $62 million in the first quarter of 2024, with another $27 million through May 3, 2024.
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 Insurers
Reinsurance Group of America, Incorporated (RGA - Free Report) reported first-quarter 2024 adjusted operating earnings of $6.02 per share, which beat the Zacks Consensus Estimate by 33.5%. The bottom line increased 16.7% from the year-ago quarter. RGA's operating revenues of $6.5 billion improved 50% year over year, driven by higher net premiums, investment income, net of related expenses and other revenues.
Net premiums of $5.4 billion jumped 58.8% year over year. Investment income and net of related expenses increased 12.3% from the prior-year quarter to $961 million. The average investment yield declined 1 basis point to 4.70%, primarily due to higher new money rates, offset by lower variable investment income.
Lincoln National Corporation (LNC - Free Report) reported first-quarter 2024 adjusted earnings of $1.37 per share, which beat the Zacks Consensus Estimate by 24.6%. However, the bottom line declined 9.9% year over year. Adjusted operating revenues of $4.6 billion declined 1.6% year over year in the quarter under review. The top line lagged the consensus mark by 1.3%.
Fee income declined 4% year over year to $1.3 billion, which missed the Zacks Consensus Estimate of $1.4 billion. Insurance premiums of $1.6 billion rose 1.4% year over year. The metric missed the consensus mark by 1%. Net investment income of $1.3 billion declined 8.2% year over year and missed the consensus mark of $1.4 billion. Meanwhile, other revenues climbed 39.2% year over year.
Voya Financial, Inc. (VOYA - Free Report) reported first-quarter 2024 adjusted operating earnings of $1.88 per share, which beat the Zacks Consensus Estimate by 18.9%. The bottom line increased 11.2% year over year. Adjusted operating revenues amounted to $1.9 billion, up 8.9% year over year, driven by higher fee income, premiums and other revenues.
Net investment income declined 2.9% year over year to $529 million. Meanwhile, fee income of $513 million increased 10.5% year over year. Premiums totaled $800 million, up 16.8% from the year-ago quarter. Total benefits and expenses were $1.7 billion, up 4.1% from the year-ago quarter. As of Mar 31, 2024, VOYA’s assets under management, assets under administration and advisement totaled $848.6 billion.