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Brighthouse Financial Q1 Earnings Miss Estimates on Lower Premiums
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Key Takeaways
BHF Q1 adjusted EPS of $4.35 missed estimates by 8.4% but rose 4.3% year over year.
Operating revenues fell 3.4% on lower premiums, policy fees and net investment income.
Annuities earnings improved, while cash climbed 5.1% and shareholders' equity rose 6.2%.
Brighthouse Financial, Inc. (BHF - Free Report) reported first-quarter 2026 adjusted net income of $4.35 per share, which missed the Zacks Consensus Estimate by 8.4%. However, the bottom line grew 4.3% year over year.
The quarterly results reflected lower premiums, a decline in adjusted net investment income and lower sales, offset by reduced expenses.
Brighthouse Financial, Inc. Price, Consensus and EPS Surprise
Total operating revenues of $2.1 billion decreased 3.4% year over year, due to lower premiums, universal life and investment-type product policy fees, net investment income and other revenues.
Premiums of $168 million decreased 9.7% year over year.
Adjusted net investment income was $1.3 billion in the quarter under review, down 1.8% year over year, primarily due to a reduction in the size of the institutional spread margin business. The investment income yield was 4.24%.
Total expenses were $2.5 billion, which declined 8.4% year over year. Corporate expenses, pretax, were $227 million, which declined 5% year over year.
Quarterly Segmental Update of BHF
Annuities recorded an adjusted operating income of $324 million, up 3.2% year over year. Annuity sales decreased 4% year over year to $2.2 billion.
Life’s adjusted operating loss was $6 million against earnings of $9 million in the year-ago reported quarter. It reflected a lower underwriting margin and lower net investment income, partially offset by lower expenses. Life insurance sales decreased 11% quarter over quarter to $32 million.
Adjusted operating loss at Run-off was $48 million, narrower than the year-ago loss of $64 million. It reflects a higher underwriting margin and lower expenses.
Corporate & Other incurred an adjusted operating loss of $31 million, wider than the year-ago loss of $24 million, reflecting lower net investment income, partially offset by a higher tax benefit.
Financial Update of BHF
Cash and cash equivalents were $4.9 billion, up 5.1% year over year.
Shareholders’ equity of $5.5 billion at the end of the first quarter of 2026 increased 6.2% year over year.
Book value per share, excluding accumulated other comprehensive income, was $139.63 as of March 31, 2026, down 1.6% year over year. Statutory combined total adjusted capital was $5 billion as of March 31, 2026, down 9.1% year over year.
As of March 31, 2026, the estimated combined risk-based capital ratio was between 430% and 450%.
Zacks Rank
Brighthouse Financial currently carries a Zacks Rank #4 (Sell).
Voya Financial, Inc. (VOYA - Free Report) reported first-quarter 2026 adjusted operating earnings of $2.26 per share, which beat the Zacks Consensus Estimate by 11.8%. The bottom line increased 13% year over year. Adjusted operating revenues amounted to $2 billion, which increased 3.1% year over year. Net investment income increased 1.6% year over year to $569 million.
Meanwhile, fee income of $604 million increased 6% year over year. Premiums totaled $744 million, up 1% from the year-ago quarter. Total benefits and expenses were $1.8 billion, up 0.3% from the year-ago quarter. As of March 31, 2026, VOYA’s assets under management, administration, and advisement totaled $1.1 trillion.
Sun Life Financial Inc. (SLF - Free Report) delivered first-quarter 2026 underlying net income of $1.38 per share, which beat the Zacks Consensus Estimate by 2.2%. The bottom line increased 8.7% year over year. Underlying net income was $765 million (C$1 billion), which increased 5.2% year over year. Revenues of $6.4 billion decreased 18.9% year over year.
Asset management gross flows & wealth sales of $45.4 billion (C$62.3 billion) increased 4.8% year over year. Group - Health & Protection sales of $402 million (C$552 million) declined 0.4% year over year. Individual - Protection sales of $840 million (C$1.15 billion) jumped 38.1% year over year. New business contractual service margin (CSM) was $313 million (C$429 million), up 11% year over year.
Reinsurance Group of America, Incorporated (RGA - Free Report) reported first-quarter 2026 adjusted operating earnings of $6.97 per share, which beat the Zacks Consensus Estimate by 12.6%. The bottom line rose 21.9% from the year-ago quarter’s figure. RGA's operating revenues of $6.6 billion beat the Zacks Consensus Estimate by 3.7%. The top line improved 19.9% year over year on higher net investment income, net premiums and other revenues.
Net premiums of $4.6 billion increased 14.3% year over year and beat the Zacks Consensus Estimates by 2.4%. Investment income improved 19.3% from the prior-year quarter to $1.7 billion and beat the Zacks Consensus Estimates by 7.4%. The average investment yield increased to 4.9% from 4.6% in the prior-year period. Total benefits and expenses increased 23.8% year over year to $6.1 billion.
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Brighthouse Financial Q1 Earnings Miss Estimates on Lower Premiums
Key Takeaways
Brighthouse Financial, Inc. (BHF - Free Report) reported first-quarter 2026 adjusted net income of $4.35 per share, which missed the Zacks Consensus Estimate by 8.4%. However, the bottom line grew 4.3% year over year.
The quarterly results reflected lower premiums, a decline in adjusted net investment income and lower sales, offset by reduced expenses.
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 $2.1 billion decreased 3.4% year over year, due to lower premiums, universal life and investment-type product policy fees, net investment income and other revenues.
Premiums of $168 million decreased 9.7% year over year.
Adjusted net investment income was $1.3 billion in the quarter under review, down 1.8% year over year, primarily due to a reduction in the size of the institutional spread margin business. The investment income yield was 4.24%.
Total expenses were $2.5 billion, which declined 8.4% year over year. Corporate expenses, pretax, were $227 million, which declined 5% year over year.
Quarterly Segmental Update of BHF
Annuities recorded an adjusted operating income of $324 million, up 3.2% year over year. Annuity sales decreased 4% year over year to $2.2 billion.
Life’s adjusted operating loss was $6 million against earnings of $9 million in the year-ago reported quarter. It reflected a lower underwriting margin and lower net investment income, partially offset by lower expenses. Life insurance sales decreased 11% quarter over quarter to $32 million.
Adjusted operating loss at Run-off was $48 million, narrower than the year-ago loss of $64 million. It reflects a higher underwriting margin and lower expenses.
Corporate & Other incurred an adjusted operating loss of $31 million, wider than the year-ago loss of $24 million, reflecting lower net investment income, partially offset by a higher tax benefit.
Financial Update of BHF
Cash and cash equivalents were $4.9 billion, up 5.1% year over year.
Shareholders’ equity of $5.5 billion at the end of the first quarter of 2026 increased 6.2% year over year.
Book value per share, excluding accumulated other comprehensive income, was $139.63 as of March 31, 2026, down 1.6% year over year.
Statutory combined total adjusted capital was $5 billion as of March 31, 2026, down 9.1% year over year.
As of March 31, 2026, the estimated combined risk-based capital ratio was between 430% and 450%.
Zacks Rank
Brighthouse Financial 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 Life Insurers
Voya Financial, Inc. (VOYA - Free Report) reported first-quarter 2026 adjusted operating earnings of $2.26 per share, which beat the Zacks Consensus Estimate by 11.8%. The bottom line increased 13% year over year. Adjusted operating revenues amounted to $2 billion, which increased 3.1% year over year. Net investment income increased 1.6% year over year to $569 million.
Meanwhile, fee income of $604 million increased 6% year over year. Premiums totaled $744 million, up 1% from the year-ago quarter. Total benefits and expenses were $1.8 billion, up 0.3% from the year-ago quarter. As of March 31, 2026, VOYA’s assets under management, administration, and advisement totaled $1.1 trillion.
Sun Life Financial Inc. (SLF - Free Report) delivered first-quarter 2026 underlying net income of $1.38 per share, which beat the Zacks Consensus Estimate by 2.2%. The bottom line increased 8.7% year over year. Underlying net income was $765 million (C$1 billion), which increased 5.2% year over year. Revenues of $6.4 billion decreased 18.9% year over year.
Asset management gross flows & wealth sales of $45.4 billion (C$62.3 billion) increased 4.8% year over year. Group - Health & Protection sales of $402 million (C$552 million) declined 0.4% year over year. Individual - Protection sales of $840 million (C$1.15 billion) jumped 38.1% year over year. New business contractual service margin (CSM) was $313 million (C$429 million), up 11% year over year.
Reinsurance Group of America, Incorporated (RGA - Free Report) reported first-quarter 2026 adjusted operating earnings of $6.97 per share, which beat the Zacks Consensus Estimate by 12.6%. The bottom line rose 21.9% from the year-ago quarter’s figure. RGA's operating revenues of $6.6 billion beat the Zacks Consensus Estimate by 3.7%. The top line improved 19.9% year over year on higher net investment income, net premiums and other revenues.
Net premiums of $4.6 billion increased 14.3% year over year and beat the Zacks Consensus Estimates by 2.4%. Investment income improved 19.3% from the prior-year quarter to $1.7 billion and beat the Zacks Consensus Estimates by 7.4%. The average investment yield increased to 4.9% from 4.6% in the prior-year period. Total benefits and expenses increased 23.8% year over year to $6.1 billion.