Q2 2025 Brighthouse Financial Inc Earnings Call Transcript
Key Points
- Brighthouse Financial Inc (BHF) maintained a strong capital position with an estimated combined RBC ratio between 405% and 425%, within their target range of 400% to 450%.
- The company reported strong sales results, with total annuity sales reaching $2.6 billion, marking a 16% increase sequentially and an 8% increase compared to the second quarter of 2024.
- Life insurance sales reached $33 million in the second quarter, contributing to record year-to-date sales of $69 million, a 21% increase compared to the same period in 2024.
- Brighthouse Financial Inc (BHF) returned capital to shareholders through $43 million of common stock repurchases, bringing year-to-date repurchases to $102 million.
- The company maintained a robust liquidity position with liquid assets at the holding company exceeding $900 million as of June 30, 2025.
- The combined RBC ratio decreased during the period due to seasonality and capital charges for fixed business and adverse non-VA results, partially driven by mortality.
- Adjusted earnings for the quarter were $198 million, which was approximately $60 million below the quarterly average run rate expectations, driven by lower alternative investment income and a lower underwriting margin.
- The alternative investment portfolio yield was 1.5%, resulting in lower alternative investment income of $32 million, below the quarterly average run rate expectation.
- The company experienced a lower underwriting margin due to higher average severity of claims, impacting the financial results.
- There were no additional share repurchases since the expiration of the most recent 10b5-1 plan at the end of May 2025, with $441 million of capacity remaining under the Board-approved share repurchase program.
Good morning, ladies and gentlemen, and welcome to Brighthouse Financial's second quarter 2025 earnings conference call. My name is Michelle, and I will be your coordinator today.
(Operator Instructions) As a reminder, the conference is being recorded for replay purposes.
I would now like to turn the presentation over to Dana Amante, Head of Investor Relations. Ms. Amante, you may proceed.
Good morning. Welcome to Brighthouse Financial's second quarter 2025 earnings call. Material for today's call were released last night and can be found on the Investor Relations section of our website. We encourage you to review all of these materials.
Today, you will hear from Eric Steigerwalt, our President and Chief Executive Officer; and Ed Spehar, our Chief Financial Officer. Following our prepared remarks, we will open the call up for a question-and-answer period. Also here with us today to participate in the discussions are Myles Lambert, our Chief Distribution and
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