Brighthouse Financial (BHF) investor relations material

Executive summary

• Net income available to shareholders was $956 million ($16.53 per diluted share) for Q2 2026, up from $60 million ($1.02 per diluted share) in Q2 2025, reflecting significant year-over-year growth.

• Adjusted earnings were $258 million ($4.45 per diluted share), up from $198 million ($3.43 per diluted share) year-over-year, with no notable items impacting the quarter.

• The increase was driven by favorable changes in variable annuity and Shield hedges, higher investment yields, and lower claims in Run-off and Life segments.

• Annuity sales totaled $2.4 billion, primarily driven by record Shield Level Annuities sales exceeding $2.1 billion; life sales were $39 million, led by SmartCare.

• A merger agreement with Aquarian Capital/Aquarian Holdings is pending, with all conditions met except for certain insurance regulatory approvals; the merger is expected to close in 2026.

Financial highlights

• Total revenues for Q2 2026 were $1.62 billion, up from $871 million in Q2 2025; six-month revenues were $3.15 billion, slightly down from $3.26 billion year-over-year.

• Net investment income for Q2 2026 was $1.24 billion, compared to $1.29 billion in Q2 2025.

• Adjusted net investment income yield was 4.17% for Q2 2026.

• Book value per common share, excluding AOCI, increased to $156.10 from $144.09 year-over-year.

• Corporate expenses were $204 million, up $2 million year-over-year but down $23 million sequentially.

Outlook and guidance

• Management anticipates continued volatility in net income due to differences between hedge targets and GAAP reserves, which are sensitive to market performance.

• The company expects continued volatility from capital markets, interest rates, and inflation, which may impact investment portfolio performance and product demand.

• Management believes it has sufficient liquidity and capital to meet business requirements under current and stress scenarios.

• Forward-looking statements highlight risks related to the pending merger with Aquarian Capital LLC, regulatory approvals, and potential business disruptions.