We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
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 Q3 Earnings Miss Estimates, Premiums Fall Y/Y
Read MoreHide Full Article
Key Takeaways
Brighthouse Financial's Q3 adjusted EPS rose 13.7% year over year but missed estimates by 10.8%.
Operating revenues inched up 0.3% to $2.2 billion, led by higher alternative investment income.
Life insurance sales jumped 27%, while annuity sales hit a record $2.7 billion on strong product demand.
Brighthouse Financial, Inc. (BHF - Free Report) reported third-quarter 2025 adjusted net income of $4.54 per share, which missed the Zacks Consensus Estimate by 10.8%. The bottom line increased 13.7% year over year.
The quarterly results reflected improved net investment income, a decline in total expenses, offset by reduced premiums.
Brighthouse Financial, Inc. Price, Consensus and EPS Surprise
Total operating revenues of $2.2 billion increased 0.3% year over year, driven by higher net investment income. Premiums of $170 million decreased 5.5% year over year.
Adjusted net investment income was $1.3 billion in the quarter under review, up 2.5% year over year, primarily driven by higher alternative investment income. The adjusted investment income yield was 4.40%.
Total expenses were $1.2 million, which decreased 32.7% year over year. Corporate expenses, pretax, were $205 million, up 0.9% year over year.
Quarterly Segmental Update
Annuities recorded adjusted earnings of $304 million, down 7% year over year. Annuity sales increased 8% to $2.7 billion due to record sales of Shield Level Annuities and higher sales of fixed annuities.
Life’s adjusted earnings were $40 million against the loss of $25 million in the year-ago quarter. Life insurance sales increased 27% to $38 million, primarily driven by sales of Brighthouse SmartCare.
Adjusted earnings at Run-off were $641 million, up 38.4% year over year. The increase reflects a higher underwriting margin, higher net investment income, and lower expenses.
Corporate & Other recorded adjusted loss of $15 million against the year-ago income of $2 million. The adjusted loss was due to lower net investment income and a lower tax benefit, partially offset by lower expenses.
Financial Update
Cash and cash equivalents were $6.6 billion, up 17.3% year over year.
Shareholders’ equity of $6.4 billion at the end of the third quarter 2025 increased 15.2% year over year.
Book value per share, excluding accumulated other comprehensive income, was $151.94 as of Sept. 30, 2025, up 14.3% year over year.
Statutory combined total adjusted capital was $5.4 billion as of Sept. 30, 2025, down 5.2% year over year.
As of Sept. 30, 2025, the estimated combined risk-based capital ratio was between 435% and 455%.
2025 Outlook
BHF expects to remain within the combined RBC ratio target range of 400% to 450% in normal market conditions at the end of 2025, without contributing capital to the insurance subsidiaries.
Reinsurance Group of America, Incorporated (RGA - Free Report) reported third-quarter 2025 adjusted operating earnings of $6.37 per share, which beat the Zacks Consensus Estimate by 9.8%. Moreover, the bottom line increased 3.9% from the year-ago quarter’s figure. Net foreign currency fluctuations had an adverse effect of 1 cent per diluted share on net income available to RGA shareholders, and a favorable effect of 4 cents per diluted share on adjusted operating income, both as compared with the prior year.
RGA's operating revenues of $6.2 billion beat the Zacks Consensus Estimate by 0.9%. Net premiums of $4.3 billion declined 2.5% year over year. Investment income increased 24% from the prior-year quarter to $1.5 billion. The average investment yield decreased to 4.73% in the third quarter from 5.08% in the prior-year period due to lower variable investment income.
Sun Life Financial Inc. (SLF - Free Report) delivered a third-quarter 2025 underlying net income of $1.35 per share, which beat the Zacks Consensus Estimate by 3.8%. Moreover, the bottom line increased 4.6% year over year. The underlying net income was reported at $760.21 million (C$1,047 million), which increased 2.1% year over year.
Wealth sales & asset management gross flows increased 46.8% year over year to $45.10 billion (C$62.12 billion) in the quarter under review. The new business contractual service margin was $323.83 million (C$446 million), up 15.3% year over year.
American Financial Group, Inc. (AFG - Free Report) reported third-quarter 2025 net operating earnings per share of $2.69, which beat the Zacks Consensus Estimate by 14.5%. The bottom line increased 16.4% year over year. Total revenues of $2.2 billion decreased 1.4% year over year. However, the top line beat the Zacks Consensus Estimate by 8.8%.
Net investment income climbed 2.5% year over year to $205 million in the quarter under review. The figure was higher than our estimate of $193.2 million and beat the Zacks Consensus Estimate of $191 million. Total cost and expenses decreased 3.6% year over year to $2.1 billion. The figure was higher than our estimate of $1.9 billion.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Brighthouse Financial Q3 Earnings Miss Estimates, Premiums Fall Y/Y
Key Takeaways
Brighthouse Financial, Inc. (BHF - Free Report) reported third-quarter 2025 adjusted net income of $4.54 per share, which missed the Zacks Consensus Estimate by 10.8%. The bottom line increased 13.7% year over year.
The quarterly results reflected improved net investment income, a decline in total expenses, offset by reduced premiums.
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 $2.2 billion increased 0.3% year over year, driven by higher net investment income. Premiums of $170 million decreased 5.5% year over year.
Adjusted net investment income was $1.3 billion in the quarter under review, up 2.5% year over year, primarily driven by higher alternative investment income. The adjusted investment income yield was 4.40%.
Total expenses were $1.2 million, which decreased 32.7% year over year. Corporate expenses, pretax, were $205 million, up 0.9% year over year.
Quarterly Segmental Update
Annuities recorded adjusted earnings of $304 million, down 7% year over year. Annuity sales increased 8% to $2.7 billion due to record sales of Shield Level Annuities and higher sales of fixed annuities.
Life’s adjusted earnings were $40 million against the loss of $25 million in the year-ago quarter. Life insurance sales increased 27% to $38 million, primarily driven by sales of Brighthouse SmartCare.
Adjusted earnings at Run-off were $641 million, up 38.4% year over year. The increase reflects a higher underwriting margin, higher net investment income, and lower expenses.
Corporate & Other recorded adjusted loss of $15 million against the year-ago income of $2 million. The adjusted loss was due to lower net investment income and a lower tax benefit, partially offset by lower expenses.
Financial Update
Cash and cash equivalents were $6.6 billion, up 17.3% year over year.
Shareholders’ equity of $6.4 billion at the end of the third quarter 2025 increased 15.2% year over year.
Book value per share, excluding accumulated other comprehensive income, was $151.94 as of Sept. 30, 2025, up 14.3% year over year.
Statutory combined total adjusted capital was $5.4 billion as of Sept. 30, 2025, down 5.2% year over year.
As of Sept. 30, 2025, the estimated combined risk-based capital ratio was between 435% and 455%.
2025 Outlook
BHF expects to remain within the combined RBC ratio target range of 400% to 450% in normal market conditions at the end of 2025, without contributing capital to the insurance subsidiaries.
Zacks Rank
BHF 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 third-quarter 2025 adjusted operating earnings of $6.37 per share, which beat the Zacks Consensus Estimate by 9.8%. Moreover, the bottom line increased 3.9% from the year-ago quarter’s figure. Net foreign currency fluctuations had an adverse effect of 1 cent per diluted share on net income available to RGA shareholders, and a favorable effect of 4 cents per diluted share on adjusted operating income, both as compared with the prior year.
RGA's operating revenues of $6.2 billion beat the Zacks Consensus Estimate by 0.9%. Net premiums of $4.3 billion declined 2.5% year over year. Investment income increased 24% from the prior-year quarter to $1.5 billion. The average investment yield decreased to 4.73% in the third quarter from 5.08% in the prior-year period due to lower variable investment income.
Sun Life Financial Inc. (SLF - Free Report) delivered a third-quarter 2025 underlying net income of $1.35 per share, which beat the Zacks Consensus Estimate by 3.8%. Moreover, the bottom line increased 4.6% year over year. The underlying net income was reported at $760.21 million (C$1,047 million), which increased 2.1% year over year.
Wealth sales & asset management gross flows increased 46.8% year over year to $45.10 billion (C$62.12 billion) in the quarter under review. The new business contractual service margin was $323.83 million (C$446 million), up 15.3% year over year.
American Financial Group, Inc. (AFG - Free Report) reported third-quarter 2025 net operating earnings per share of $2.69, which beat the Zacks Consensus Estimate by 14.5%. The bottom line increased 16.4% year over year. Total revenues of $2.2 billion decreased 1.4% year over year. However, the top line beat the Zacks Consensus Estimate by 8.8%.
Net investment income climbed 2.5% year over year to $205 million in the quarter under review. The figure was higher than our estimate of $193.2 million and beat the Zacks Consensus Estimate of $191 million. Total cost and expenses decreased 3.6% year over year to $2.1 billion. The figure was higher than our estimate of $1.9 billion.