Brighthouse Financial (BHF) investor relations material

Executive summary

• Net loss available to shareholders was $792 million for Q1 2026, compared to a net loss of $294 million in Q1 2025, primarily due to unfavorable changes in variable annuity and Shield hedges and net investment losses on fixed maturity securities sales, partially offset by positive adjusted earnings.

• Adjusted earnings were $239 million, up from $235 million year-over-year, reflecting higher net investment spread and lower expenses, offset by lower fee income and higher amortization of deferred acquisition costs.

• Adjusted earnings per share, less notable items, were $4.35, compared to $4.17 in Q1 2025.

• Pending acquisition by Aquarian Holdings for $70.00 per share in an all-cash transaction valued at $4.1 billion, expected to close in 2026, subject to regulatory approvals.

• Annuity sales reached $2.2 billion, primarily driven by Shield Level Annuities; life sales totaled $32 million, mainly from SmartCare.

Financial highlights

• Total revenues were $1.53 billion, down from $2.39 billion in Q1 2025, driven by lower net investment income and significant net derivative losses.

• Total expenses were $2,513 million, compared to $2,744 million year-over-year.

• Book value per common share, excluding AOCI, was $139.63 at March 31, 2026.

• Combined total adjusted capital was $5.0 billion, with a combined RBC ratio of 430%-450%.

• Holding company liquid assets stood at $0.9 billion.

Segment performance

• Annuities segment adjusted earnings were $324 million, up from $314 million in Q1 2025, driven by higher net investment spread and lower expenses.

• Life segment reported an adjusted loss of $6 million, compared to $9 million in Q1 2025, due to higher claims and lower investment spread.

• Run-off segment posted an adjusted loss of $48 million, versus $64 million year-over-year, reflecting lower claims and expenses.

• Corporate & Other segment had an adjusted loss of $31 million, compared to $24 million in Q1 2025, mainly due to lower investment spread.