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BHF's Q4 adjusted EPS fell 33% Y/Y and missed estimates as revenues slipped 4.5%.
Expenses jumped 315% Y/Y on market risk changes and higher DAC, VOBA amortization.
Brighthouse Financial's RBC ratio hit 456%, above its 400-450% target range.
Brighthouse Financial, Inc. (BHF - Free Report) reported fourth-quarter 2025 adjusted net income of $3.93 per share, which missed the Zacks Consensus Estimate by 24.3%. The bottom line decreased 33.2% year over year.
Total operating revenues of $2.2 billion decreased 4.5% year over year. The top line missed the Zacks Consensus Estimate by 2.7%
The underperformance can be attributed to lower premiums and policy fees, softer net investment income and higher expenses. Nevertheless, a combined risk-based capital (RBC) ratio of 456%, above the company’s 400-450% target range, provides support for long-term investment.
Brighthouse Financial, Inc. Price, Consensus and EPS Surprise
Premiums of $173 million were down 16.4% year over year. This metric missed the Zacks Consensus Estimate by 13.9%.
Adjusted net investment income was $1.3 billion in the quarter under review, down 3.1% year over year. The decrease was primarily due to reduced institutional spread margin business and the effect of lower short-term interest rates. The adjusted net investment income yield was 4.44%.
Total expenses were $1.5 billion, which surged 314.8% year over year. The year-over-year increase was primarily attributable to unfavorable changes in market risk benefits, along with higher amortization of DAC and VOBA and other expenses.
Corporate expenses, pretax, totaled $234 million, up 11.4% year over year, reflecting costs incurred in connection with the pending acquisition of the company.
BHF’s Full-Year 2025 Update
Brighthouse reported full-year adjusted earnings, less notable items, per share of $16.1, down 18.1% year over year.
Total adjusted revenues amounted to $8.66 billion, down 0.7% year over year.
Adjusted net investment income of $5.2 billion was down 0.4% year over year. Total expenses were $6.8 billion, which surged 43.2%.
BHF’s Quarterly Segmental Update
Annuities recorded adjusted earnings of $304 million, which rose 9% year over year but missed the Zacks Consensus Estimates by 5.1%. Annuity sales increased 22.1% to $2.7 billion, driven by record sales of Shield Level Annuities.
Life’s adjusted earnings were $18 million, down 65.4% year over year. Life insurance sales increased 9.1% to $36 million, primarily driven by sales of Brighthouse SmartCare.
The Run-off segment posted an adjusted loss of $58 million, wider than the adjusted loss of $27 million in the year-ago quarter. On a year-over-year basis, the adjusted loss, less notable items, reflected lower net investment income and a lower underwriting margin, partially offset by lower expenses.
Corporate & Other recorded an adjusted loss of $50 million compared to breakeven results in the prior-year quarter. The decline was primarily due to higher acquisition-related expenses and lower net investment income.
BHF’s Financial Update
Cash and cash equivalents were $5.4 billion, up 6.8% year over year.
Total stockholders’ equity totaled $6.8 billion as of Dec. 31, 2025, up 36% year over year.
Book value per share, excluding accumulated other comprehensive income, was $153.89 as of Dec. 31, 2025, up 5.7% year over year.
Statutory combined total adjusted capital was $5.3 billion as of Dec. 31, 2025, down 1.9% year over year.
As of Dec. 31, 2025, the combined risk-based capital ratio was 456%, above the 400-450% target range.
Voya Financial, Inc. (VOYA - Free Report) reported fourth-quarter 2025 adjusted operating earnings of $1.94 per share, which missed the Zacks Consensus Estimate by 8%. The bottom line increased 38.5% year over year. Adjusted operating revenues amounted to $2 billion, up 5.7% year over year.
The increase was due to higher earnings across all segments, partially offset by higher accruals in Corporate for performance-based compensation, reflecting strong results in 2025. The fourth-quarter 2025 earnings per share also benefited from reduced share count from share repurchases.
Lincoln National Corporation (LNC - Free Report) reported fourth-quarter 2025 adjusted earnings per share of $2.21, which surpassed the Zacks Consensus Estimate by 18.7%. The bottom line rose 15.7% year over year. Adjusted operating revenues grew 5.7% year over year to $4.9 billion. The top line beat the consensus mark by 1%.
LNC’s strong quarterly results were supported by higher insurance premiums, strong annuity deposits and solid Life Insurance performance. Higher net investment income and improved mortality results also contributed to the upside. The positives were partly offset by a decline in the sales of Group Protection and elevated expenses.
American Financial Group, Inc. (AFG - Free Report) reported fourth-quarter 2025 net operating earnings per share of $3.65, which beat the Zacks Consensus Estimate by 14.8%. The bottom line increased 17% year over year on underwriting income.
Total revenues of $2 billion decreased 2.7% year over year. The decline was due to lower net investment income. The top line also missed the Zacks Consensus Estimate by 1.4%. AFG’s robust fourth-quarter earnings were driven by strong underwriting profit, led primarily by the property and transportation segment.
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Brighthouse Financial's Q4 Earnings & Revenues Miss, Expenses Rise Y/Y
Key Takeaways
Brighthouse Financial, Inc. (BHF - Free Report) reported fourth-quarter 2025 adjusted net income of $3.93 per share, which missed the Zacks Consensus Estimate by 24.3%. The bottom line decreased 33.2% year over year.
Total operating revenues of $2.2 billion decreased 4.5% year over year. The top line missed the Zacks Consensus Estimate by 2.7%
The underperformance can be attributed to lower premiums and policy fees, softer net investment income and higher expenses. Nevertheless, a combined risk-based capital (RBC) ratio of 456%, above the company’s 400-450% target range, provides support for long-term investment.
Brighthouse Financial, Inc. Price, Consensus and EPS Surprise
Brighthouse Financial, Inc. price-consensus-eps-surprise-chart | Brighthouse Financial, Inc. Quote
BHF’s Q4 Results in Detail
Premiums of $173 million were down 16.4% year over year. This metric missed the Zacks Consensus Estimate by 13.9%.
Adjusted net investment income was $1.3 billion in the quarter under review, down 3.1% year over year. The decrease was primarily due to reduced institutional spread margin business and the effect of lower short-term interest rates. The adjusted net investment income yield was 4.44%.
Total expenses were $1.5 billion, which surged 314.8% year over year. The year-over-year increase was primarily attributable to unfavorable changes in market risk benefits, along with higher amortization of DAC and VOBA and other expenses.
Corporate expenses, pretax, totaled $234 million, up 11.4% year over year, reflecting costs incurred in connection with the pending acquisition of the company.
BHF’s Full-Year 2025 Update
Brighthouse reported full-year adjusted earnings, less notable items, per share of $16.1, down 18.1% year over year.
Total adjusted revenues amounted to $8.66 billion, down 0.7% year over year.
Adjusted net investment income of $5.2 billion was down 0.4% year over year. Total expenses were $6.8 billion, which surged 43.2%.
BHF’s Quarterly Segmental Update
Annuities recorded adjusted earnings of $304 million, which rose 9% year over year but missed the Zacks Consensus Estimates by 5.1%. Annuity sales increased 22.1% to $2.7 billion, driven by record sales of Shield Level Annuities.
Life’s adjusted earnings were $18 million, down 65.4% year over year. Life insurance sales increased 9.1% to $36 million, primarily driven by sales of Brighthouse SmartCare.
The Run-off segment posted an adjusted loss of $58 million, wider than the adjusted loss of $27 million in the year-ago quarter. On a year-over-year basis, the adjusted loss, less notable items, reflected lower net investment income and a lower underwriting margin, partially offset by lower expenses.
Corporate & Other recorded an adjusted loss of $50 million compared to breakeven results in the prior-year quarter. The decline was primarily due to higher acquisition-related expenses and lower net investment income.
BHF’s Financial Update
Cash and cash equivalents were $5.4 billion, up 6.8% year over year.
Total stockholders’ equity totaled $6.8 billion as of Dec. 31, 2025, up 36% year over year.
Book value per share, excluding accumulated other comprehensive income, was $153.89 as of Dec. 31, 2025, up 5.7% year over year.
Statutory combined total adjusted capital was $5.3 billion as of Dec. 31, 2025, down 1.9% year over year.
As of Dec. 31, 2025, the combined risk-based capital ratio was 456%, above the 400-450% target range.
Zacks Rank
BHF currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Insurers
Voya Financial, Inc. (VOYA - Free Report) reported fourth-quarter 2025 adjusted operating earnings of $1.94 per share, which missed the Zacks Consensus Estimate by 8%. The bottom line increased 38.5% year over year. Adjusted operating revenues amounted to $2 billion, up 5.7% year over year.
The increase was due to higher earnings across all segments, partially offset by higher accruals in Corporate for performance-based compensation, reflecting strong results in 2025. The fourth-quarter 2025 earnings per share also benefited from reduced share count from share repurchases.
Lincoln National Corporation (LNC - Free Report) reported fourth-quarter 2025 adjusted earnings per share of $2.21, which surpassed the Zacks Consensus Estimate by 18.7%. The bottom line rose 15.7% year over year. Adjusted operating revenues grew 5.7% year over year to $4.9 billion. The top line beat the consensus mark by 1%.
LNC’s strong quarterly results were supported by higher insurance premiums, strong annuity deposits and solid Life Insurance performance. Higher net investment income and improved mortality results also contributed to the upside. The positives were partly offset by a decline in the sales of Group Protection and elevated expenses.
American Financial Group, Inc. (AFG - Free Report) reported fourth-quarter 2025 net operating earnings per share of $3.65, which beat the Zacks Consensus Estimate by 14.8%. The bottom line increased 17% year over year on underwriting income.
Total revenues of $2 billion decreased 2.7% year over year. The decline was due to lower net investment income. The top line also missed the Zacks Consensus Estimate by 1.4%. AFG’s robust fourth-quarter earnings were driven by strong underwriting profit, led primarily by the property and transportation segment.