Brighthouse Financial Q2 Earnings Miss Estimates on Lower Premiums

Brighthouse Financial, Inc. BHF reported second-quarter 2025 adjusted earnings of $3.43 per share, which missed the Zacks Consensus Estimate by 27%. The bottom line declined 38.4% year over year.

The lower-than-expected results for the quarter were due to a combination of reduced premiums and lower net investment income, partially offset by a decline in total expenses.

Behind the Headlines

Total operating revenues of $2.2 billion decreased 2.9% year over year, due to lower universal life and investment-type product policy fees and net investment income. The top line missed the consensus estimate by 2.1%.

Brighthouse Financial, Inc. Price, Consensus and EPS Surprise

Brighthouse Financial, Inc. price-consensus-eps-surprise-chart | Brighthouse Financial, Inc. Quote

Premiums of $166 million decreased 8.3% year over year. The Zacks consensus Estimate was $200 million, and our estimate was $248.8 million.

Adjusted net investment income was $1.3 billion in the quarter under review, down 1.8% year over year, primarily due to lower income from alternative investments. The investment income yield was 4.28%.

Total expenses were $778 million, which dropped nearly 45% from $1.4 billion year over year. Our estimate was $1.7 billion. Corporate expenses, pretax, were $202 million, inching up 1% year over year.

Quarterly Segmental Update of BHF

Annuities recorded an adjusted operating income of $332 million, which remained flat year over year. Annuity sales increased 8.4% year over year to $2.6 billion, mainly supported by stronger fixed annuity sales, partially offset by a decline in Shield Level Annuity sales.

Life’s adjusted operating loss was $26 million against earnings of $42 million in the year-ago reported quarter. It reflects a lower underwriting margin and lower net investment income. Life insurance sales increased 17.8% quarter over quarter to $33 million, reflecting growth of the company's life insurance suite.

Adjusted operating loss at Run-off was $83 million, wider than the year-ago loss of $30 million. It reflects reduced net investment income and a weaker underwriting margin, partially offset by decreased expenses.

Corporate & Other recorded an adjusted operating loss of $25 million against earnings of $2 million in the year-ago quarter, reflecting a decline in net investment income and a reduced tax benefit.

Financial Update of BHF

Cash and cash equivalents for the reported quarter were $5.5 billion, up 24.7% year over year.

In the quarter under review, shareholders’ equity was $5.7 billion, which increased 37% year over year.

Book value per share, excluding accumulated other comprehensive income, was $144.09 as of June 30, 2025, up 12.3% year over year.

Statutory combined total adjusted capital was $5.6 billion as of June 30, 2025, up 3.7% year over year.

As of June 30, 2025, the estimated combined risk-based capital ratio was in the range of 405-425%%.

Brighthouse Financial’s Share Buyback Program

Brighthouse Financial bought back shares worth $43 million in the second quarter of 2025, taking the year-to-date tally to $102 million.

Zacks Rank

Brighthouse Financial currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Life Insurers

Here are three stocks in the Life Insurance space that have already reported earnings for this quarter: Reinsurance Group of America, Incorporated RGA, Voya Financial, Inc. VOYA, Lincoln National Corporation LNC

Reinsurance Group of America reported second-quarter 2025 adjusted operating earnings of $4.72 per share, which missed the Zacks Consensus Estimate by 15.4%. Though it witnesseda solid performance in Canada, Europe, the Middle East and Africa (EMEA) and Asia/Pacific segments, it was offset by weakness in the U.S. and Latin America segments.Reinsurance Group’s operating revenues of $5.6 billion improved 9.6% year over year, driven by higher net premiums, investment income, net of related expenses and other revenues.

Voya Financial reported second-quarter 2025 adjusted operating earnings of $2.4 per share, which beat the Zacks Consensus Estimate by 14.8%, driven by accretion from the OneAmerica business, favorable capital markets, and net inflows across the operations.Voya’sadjusted operating revenues amounted to $356 million, up 9.8% year over year.

Lincoln National reported second-quarter adjusted earnings per share of $2.36, which surpassed the Zacks Consensus Estimate by 23.6%, thanks to higher insurance premiums, strong annuity deposits and solid Group Protection performance.Lincoln’s adjusted operating revenues grew 4.4% year over year to $4.7 billion.

This article originally published on Zacks Investment Research (zacks.com).

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