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BHF's Shield Annuities Poised to Sustain Strong Sales Growth
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Key Takeaways
Brighthouse Financial generated a record $2.1 billion of Shield sales in the second quarter.
Flexible terms, indices, protection levels and crediting structures support the product's appeal.
Shield sales reached about $4 billion in the first half, offsetting weakness in fixed annuities.
Brighthouse Financial, Inc.’s (BHF - Free Report) Shield Level Annuities appear well positioned to sustain strong sales momentum, supported by demand for products that combine equity-market participation with a degree of downside protection. However, continued growth will depend on product competitiveness, distribution strength and customer demand.
Shield Level Annuities are registered index-linked annuities (RILAs) that offer investors with exposure to market gains while offering a defined level of protection against market losses. The product addresses growing demand for retirement solutions that balance growth potential with risk protection. For BHF, continued Shield sales can support annuity growth while expanding its product mix beyond traditional fixed annuities.
BHF’s second-quarter 2026 results highlighted the growing importance of Shield Level Annuities. Total annuity sales were $2.4 billion, of which a record $2.1 billion came from Shield products. Strong Shield sales more than offset weakness in fixed annuities, while first-half Shield sales reached approximately $4 billion. Total annuity sales increased 11% sequentially, although they declined 7% year over year, primarily due to lower fixed-annuity sales.
The product’s flexible value proposition could support further demand. Customers can select from different terms, indices, protection levels and crediting structures, allowing BHF to adjust offerings to changing market conditions and investor preferences.
The market environment could also remain supportive. Investors seeking equity-market participation with some protection against losses may find RILAs attractive during periods of heightened market uncertainty. BHF’s second quarter of 2026 performance demonstrates that Shield Level Annuities have evolved into a major growth engine for BHF, helping offset weakness in other annuity products. Sustained distribution momentum and continued product innovation will be key to determining whether Shield can maintain its rapid growth.
What About Its Peers?
Corebridge Financial, Inc. (CRBG - Free Report) has one of the largest and broadest annuity franchises in the United States, making annuities a key part of its retirement-solutions business. Corebridge's strength comes from its diversified annuity lineup, which includes fixed annuities, fixed-indexed annuities, variable annuities and RILAs. Its Corebridge MarketLock Annuity competes directly with products such as Brighthouse Financial's Shield Level Annuities by offering equity-market participation alongside a targeted level of downside protection. In July 2026, Corebridge expanded its Power Series Index Annuities with additional accumulation and diversification capabilities, suggesting continued investment in its annuity platform.
Lincoln National Corporation’s (LNC - Free Report) Lincoln Level Advantage is a key competitor to BHF’s Shield Level Annuities in the RILA market.Lincoln Level Advantage is designed to provide market-growth potential while offering a defined level of downside protection. The newer Lincoln Level Advantage 2 adds features such as multiple index and investment options and Secure Lock+, which allows investors to capture gains and reset their protection level during the term. The product is becoming increasingly relevant to Lincoln’s broader annuity strategy.
BHF’s Price Performance
Shares of BHF have lost 2.5% in the past year against the industry.
Image Source: Zacks Investment Research
BHF’s Undervaluation
The stock is undervalued compared with its industry. Its forward price-to-book value of 0.46X is lower than the industry average of 2.29X.
Image Source: Zacks Investment Research
Estimate Movement for BHF
The Zacks Consensus Estimate for BHF’s third and fourth-quarter 2026 EPS has moved down 0.6% over the past 60 days. The same for full-year 2026 and 2027 EPS has moved down 1.9% and 0.04%, respectively, over the past 60 days. Image Source: Zacks Investment Research
The consensus estimate for BHF’s 2026 and 2027 EPS and revenues indicates a year-over-year increase.
BHF stock currently carries a Zacks Rank #4 (Sell).
View the Zacks #1 Rank List
Image: Bigstock
BHF's Shield Annuities Poised to Sustain Strong Sales Growth
Key Takeaways
Brighthouse Financial, Inc.’s (BHF - Free Report) Shield Level Annuities appear well positioned to sustain strong sales momentum, supported by demand for products that combine equity-market participation with a degree of downside protection. However, continued growth will depend on product competitiveness, distribution strength and customer demand.
Shield Level Annuities are registered index-linked annuities (RILAs) that offer investors with exposure to market gains while offering a defined level of protection against market losses. The product addresses growing demand for retirement solutions that balance growth potential with risk protection. For BHF, continued Shield sales can support annuity growth while expanding its product mix beyond traditional fixed annuities.
BHF’s second-quarter 2026 results highlighted the growing importance of Shield Level Annuities. Total annuity sales were $2.4 billion, of which a record $2.1 billion came from Shield products. Strong Shield sales more than offset weakness in fixed annuities, while first-half Shield sales reached approximately $4 billion. Total annuity sales increased 11% sequentially, although they declined 7% year over year, primarily due to lower fixed-annuity sales.
The product’s flexible value proposition could support further demand. Customers can select from different terms, indices, protection levels and crediting structures, allowing BHF to adjust offerings to changing market conditions and investor preferences.
The market environment could also remain supportive. Investors seeking equity-market participation with some protection against losses may find RILAs attractive during periods of heightened market uncertainty. BHF’s second quarter of 2026 performance demonstrates that Shield Level Annuities have evolved into a major growth engine for BHF, helping offset weakness in other annuity products. Sustained distribution momentum and continued product innovation will be key to determining whether Shield can maintain its rapid growth.
What About Its Peers?
Corebridge Financial, Inc. (CRBG - Free Report) has one of the largest and broadest annuity franchises in the United States, making annuities a key part of its retirement-solutions business. Corebridge's strength comes from its diversified annuity lineup, which includes fixed annuities, fixed-indexed annuities, variable annuities and RILAs. Its Corebridge MarketLock Annuity competes directly with products such as Brighthouse Financial's Shield Level Annuities by offering equity-market participation alongside a targeted level of downside protection. In July 2026, Corebridge expanded its Power Series Index Annuities with additional accumulation and diversification capabilities, suggesting continued investment in its annuity platform.
Lincoln National Corporation’s (LNC - Free Report) Lincoln Level Advantage is a key competitor to BHF’s Shield Level Annuities in the RILA market.Lincoln Level Advantage is designed to provide market-growth potential while offering a defined level of downside protection. The newer Lincoln Level Advantage 2 adds features such as multiple index and investment options and Secure Lock+, which allows investors to capture gains and reset their protection level during the term. The product is becoming increasingly relevant to Lincoln’s broader annuity strategy.
BHF’s Price Performance
Shares of BHF have lost 2.5% in the past year against the industry.
Image Source: Zacks Investment Research
BHF’s Undervaluation
The stock is undervalued compared with its industry. Its forward price-to-book value of 0.46X is lower than the industry average of 2.29X.
Image Source: Zacks Investment Research
Estimate Movement for BHF
The Zacks Consensus Estimate for BHF’s third and fourth-quarter 2026 EPS has moved down 0.6% over the past 60 days. The same for full-year 2026 and 2027 EPS has moved down 1.9% and 0.04%, respectively, over the past 60 days.
Image Source: Zacks Investment Research
The consensus estimate for BHF’s 2026 and 2027 EPS and revenues indicates a year-over-year increase.
BHF stock currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.