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BHF benefited from stronger underwriting, lower expenses and better Annuities earnings, despite weaker sales.
Cash, book value per share and shareholders' equity increased, while adjusted investment income declined.
Brighthouse Financial, Inc. (BHF - Free Report) reported second-quarter 2026 adjusted net income of $4.45 per share, which missed the Zacks Consensus Estimate by 10.4%. However, the bottom line grew 29.7% year over year.
The quarterly results benefited from improved underwriting margins in the Life and Run-off segments, reduced expenses and higher earnings in the Annuities business. However, lower adjusted net investment income and weaker annuity sales on a year-over-year basis partly offset the upside.
Behind the Headlines
Total operating revenues of $2.1 billion decreased 2% year over year, due to lower universal life and investment-type product policy fees, net investment income and other revenues, partly offset by slightly higher premiums. The figure was below the Zacks Consensus Estimate by 8.1%.
Brighthouse Financial, Inc. Price, Consensus and EPS Surprise
Premiums of $165 million increased 0.6% year over year.
Adjusted net investment income was $1.2 billion in the quarter under review, down 4.1% year over year, primarily due to lower alternative investment income. The adjusted net investment income yield was 4.17%.
Total expenses were $396 million, which declined 49.1% year over year. Corporate expenses, pretax, were $204 million, up 1% year over year.
Quarterly Segmental Update of BHF
Annuities recorded an adjusted operating income of $349 million, up 5.1% year over year. Annuity sales decreased 7.1% year over year to $2.4 billion, driven by lower fixed annuity sales.
Life’s adjusted operating loss was $4 million, narrower than the year-ago loss of $26 million. It reflected a lower underwriting margin and lower net investment income, partially offset by lower expenses. Life insurance sales increased 18.2% quarter over quarter to $39 million.
Adjusted operating loss at Run-off was $56 million, narrower than the year-ago loss of $83 million. It reflected a higher underwriting margin and lower expenses, partially offset by lower net investment income.
Corporate & Other incurred an adjusted operating loss of $31 million, wider than the year-ago loss of $25 million, reflecting lower net investment income, partially offset by higher interest credited.
Financial Update of BHF
Cash and cash equivalents were $7.1 billion, up 28.2% year over year.
Shareholders’ equity of $6.6 billion at the end of the second quarter of 2026 increased 15.4% year over year.
As of June 30, 2026, book value per share, excluding accumulated other comprehensive income, was $156.10, up 8.3% year over year.
As of June 30, 2026, Statutory combined total adjusted capital was $4.9 billion, down 12.5% year over year.
As of June 30, 2026, the estimated combined risk-based capital ratio was between 430% and 450%.
Voya Financial, Inc. (VOYA - Free Report) reported second-quarter 2026 adjusted operating earnings of $1.51 per share, missing the Zacks Consensus Estimate of $1.88 by 19.7%. The bottom line declined 38.6% year over year. Revenues of $269 million missed the consensus mark by 4.6%.
After-tax adjusted operating earnings fell to $140 million from $240 million in the year-ago quarter. Results included about $40 million of pre-tax severance expenses and a $15 million pre-tax loss tied to alternative investment performance. Consolidated revenues declined 4.3% year over year to $1.90 billion. Fee income increased 7.5% to $620 million, but net investment income fell 8% to $537 million. Premiums remained nearly flat at $716 million. Total benefits and expenses rose 3.8% to $1.86 billion, including a 4.8% increase in operating expenses.
Manulife Financial Corporation (MFC - Free Report) reported second-quarter 2026 core earnings of 79 cents per share, which beat the Zacks Consensus Estimate by 1.3%. The bottom line increased 16% year over year. Revenues of $7.82 billion surpassed the consensus estimate of $7.42 billion by 5.4%.
Core earnings were C$1.92 billion ($1.38 billion), up 12% year over year. APE sales advanced 21% year over year to C$2.70 billion ($1.95 billion). Asia remained the largest contributor, with sales rising to C$2.07 billion from C$1.71 billion. Canada APE sales increased 23% year over year to C$426 million ($307.69 million).
Lincoln National Corporation (LNC - Free Report) reported second-quarter 2026 adjusted earnings per share of $2.24, which surpassed the Zacks Consensus Estimate by 12%. The bottom line declined 5.1% year over year. Adjusted operating revenues grew 4.2% year over year to $4.93 billion, surpassing the Zacks Consensus Estimate by 1.4%.
Management had earlier projected that the Annuities, Life Insurance, Group Protection and Retirement Plan Services units would account for 58-60%, 8-9%, 24-25% and 8-9%, respectively, of the company's total operating income in 2026. Management had earlier projected an RBC ratio of more than 420% in 2026 and over the long term.
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BHF Q2 Earnings Miss Estimates, Investment Income Falls Y/Y
Key Takeaways
Brighthouse Financial, Inc. (BHF - Free Report) reported second-quarter 2026 adjusted net income of $4.45 per share, which missed the Zacks Consensus Estimate by 10.4%. However, the bottom line grew 29.7% year over year.
The quarterly results benefited from improved underwriting margins in the Life and Run-off segments, reduced expenses and higher earnings in the Annuities business. However, lower adjusted net investment income and weaker annuity sales on a year-over-year basis partly offset the upside.
Behind the Headlines
Total operating revenues of $2.1 billion decreased 2% year over year, due to lower universal life and investment-type product policy fees, net investment income and other revenues, partly offset by slightly higher premiums. The figure was below the Zacks Consensus Estimate by 8.1%.
Brighthouse Financial, Inc. Price, Consensus and EPS Surprise
Brighthouse Financial, Inc. price-consensus-eps-surprise-chart | Brighthouse Financial, Inc. Quote
Premiums of $165 million increased 0.6% year over year.
Adjusted net investment income was $1.2 billion in the quarter under review, down 4.1% year over year, primarily due to lower alternative investment income. The adjusted net investment income yield was 4.17%.
Total expenses were $396 million, which declined 49.1% year over year. Corporate expenses, pretax, were $204 million, up 1% year over year.
Quarterly Segmental Update of BHF
Annuities recorded an adjusted operating income of $349 million, up 5.1% year over year. Annuity sales decreased 7.1% year over year to $2.4 billion, driven by lower fixed annuity sales.
Life’s adjusted operating loss was $4 million, narrower than the year-ago loss of $26 million. It reflected a lower underwriting margin and lower net investment income, partially offset by lower expenses. Life insurance sales increased 18.2% quarter over quarter to $39 million.
Adjusted operating loss at Run-off was $56 million, narrower than the year-ago loss of $83 million. It reflected a higher underwriting margin and lower expenses, partially offset by lower net investment income.
Corporate & Other incurred an adjusted operating loss of $31 million, wider than the year-ago loss of $25 million, reflecting lower net investment income, partially offset by higher interest credited.
Financial Update of BHF
Cash and cash equivalents were $7.1 billion, up 28.2% year over year.
Shareholders’ equity of $6.6 billion at the end of the second quarter of 2026 increased 15.4% year over year.
As of June 30, 2026, book value per share, excluding accumulated other comprehensive income, was $156.10, up 8.3% year over year.
As of June 30, 2026, Statutory combined total adjusted capital was $4.9 billion, down 12.5% year over year.
As of June 30, 2026, the estimated combined risk-based capital ratio was between 430% and 450%.
Zacks Rank
Brighthouse Financial currently has 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 second-quarter 2026 adjusted operating earnings of $1.51 per share, missing the Zacks Consensus Estimate of $1.88 by 19.7%. The bottom line declined 38.6% year over year. Revenues of $269 million missed the consensus mark by 4.6%.
After-tax adjusted operating earnings fell to $140 million from $240 million in the year-ago quarter. Results included about $40 million of pre-tax severance expenses and a $15 million pre-tax loss tied to alternative investment performance. Consolidated revenues declined 4.3% year over year to $1.90 billion. Fee income increased 7.5% to $620 million, but net investment income fell 8% to $537 million. Premiums remained nearly flat at $716 million. Total benefits and expenses rose 3.8% to $1.86 billion, including a 4.8% increase in operating expenses.
Manulife Financial Corporation (MFC - Free Report) reported second-quarter 2026 core earnings of 79 cents per share, which beat the Zacks Consensus Estimate by 1.3%. The bottom line increased 16% year over year. Revenues of $7.82 billion surpassed the consensus estimate of $7.42 billion by 5.4%.
Core earnings were C$1.92 billion ($1.38 billion), up 12% year over year. APE sales advanced 21% year over year to C$2.70 billion ($1.95 billion). Asia remained the largest contributor, with sales rising to C$2.07 billion from C$1.71 billion. Canada APE sales increased 23% year over year to C$426 million ($307.69 million).
Lincoln National Corporation (LNC - Free Report) reported second-quarter 2026 adjusted earnings per share of $2.24, which surpassed the Zacks Consensus Estimate by 12%. The bottom line declined 5.1% year over year. Adjusted operating revenues grew 4.2% year over year to $4.93 billion, surpassing the Zacks Consensus Estimate by 1.4%.
Management had earlier projected that the Annuities, Life Insurance, Group Protection and Retirement Plan Services units would account for 58-60%, 8-9%, 24-25% and 8-9%, respectively, of the company's total operating income in 2026. Management had earlier projected an RBC ratio of more than 420% in 2026 and over the long term.